The National Audit Office of China has identified some risks in the pork production and supply chain in some areas, including ineffective disease prevention measures and inadequate pork reserves. The audit also highlights underutilized aquaculture resources and mismanagement of funded projects. The report recommends strengthening disease prevention programs and optimizing resource use to ensure food security.

In a recent report published by the National Audit Office of China, regional risks were identified in the country’s pork production and supply chain, raising concerns over food security and economic stability. The findings were detailed in the “2023 Audit Report on the Implementation of Central Budgets and Other Fiscal Revenues and Expenditures”.
Key Findings on Pork Production Risks
The audit revealed two major issues affecting regional pork production and supply:
1.Ineffective Disease Prevention Measures: Despite the government’s mandate for compulsory immunization of pigs, only 7.7% of large-scale farms in seven provinces received the “vaccinate first, reimburse later” subsidy. This low participation rate has undermined disease control efforts, as farmers struggle with the financial burden of vaccinations. Additionally, improper storage and transportation of 5.71 million milliliters (66%) of foot-and-mouth disease vaccine in five provinces have increased the risk of vaccine failure.

- Inadequate Pork Reserves: The report highlighted that over the past three years, five provinces have fallen short by 21,100 tons over the past three years, which is about 70% of the storage target. This shortfall has left these regions vulnerable to price spikes during periods of high demand, as there are insufficient reserves to stabilize the market.
Broader Implications for the Livestock Sector
The audit also extended to the aquaculture industry, uncovering regional vulnerabilities:
- Underutilized Aquaculture Resources: In two provinces, 3.34 million mu (43%) (about 551,678 acres) allocated for aquaculture were left unused, resulting in an annual production shortfall of over 1.9 million tons.
- Mismanagement of Funded Projects: Central government funds amounting to CNY 1.14 billion (about USD 160 million) were allocated to build 35 national marine ranches and 1,261 deep-sea aquaculture cages. However, many projects remain incomplete or poorly managed, wasting resources.
- Unmet Freshwater Aquaculture Goals: In seven provinces, the 83,200 mu (34%) (about 13,706 acres) of freshwater ponds earmarked for renovation over the past three years were left unrenovated, leaving CNY 119 million (about USD 16.7 million ) in subsidies unused.
The audit report underscores the importance of robust oversight and efficient resource use in maintaining food security and stabilizing markets. The National Audit Office highlighted the need for a comprehensive approach to agricultural and food security, urging diverse food supply systems to ensure safety. Addressing gaps in disease prevention and supply chain management is vital for sustaining China’s pork production and economic stability.
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