Summary: At
a press conference held by the State Council Information Office on the
performance of the agricultural and rural economy for the first three quarters
of 2024, Zhang Xingwang, Vice Minister of Agriculture and Rural Affairs,
reported that recent efforts have led to a reduction in beef cattle inventory
and a slowdown in dairy farming growth. This stabilization has allowed prices
to recover and eased some of the production difficulties, reducing losses for
breeders.
On October 25, the State Council
Information Office held a press briefing on the agricultural and rural economic
performance for the first three quarters of 2024. Zhang Xingwang, Vice Minister
of Agriculture and Rural Affairs, noted that the recent declines in beef and
dairy cattle prices and the resulting financial challenges for farmers have
drawn widespread public concern. Since last year, beef and milk prices nationwide
have been steadily declining, leading to operational difficulties for farmers
in an already complex and severe market environment. However, recent collective
efforts have led to an adaptive reduction in beef cattle inventories, a
slowdown in dairy farming growth, price stabilization, and a decrease in
financial losses for breeders.
Zhang explained that in response to the
significant challenges in the cattle and dairy industries, the Ministry of
Agriculture and Rural Affairs has taken swift and concerted action to assist
farmers and businesses. This included conducting specialized research, sending
teams to major production regions for guidance, issuing cost-reduction and
efficiency-enhancement guidance, and implementing policies to minimize production
costs. The Ministry has also strengthened coordination with other relevant
departments to increase fiscal and financial support, helping farms to mitigate
losses.
In late September, the Ministry, along with
six other departments, including the National Development and Reform
Commission, released the “Notice on Promoting Stable Development of Beef and
Dairy Cattle Production,” outlining a comprehensive policy package across seven
areas. Major production regions, such as Inner Mongolia and Xinjiang, have also
introduced practical measures based on local conditions, including farming
subsidies and fresh milk spray drying subsidies. These measures have alleviated
some of the industry’s difficulties.
Zhang added that going forward, efforts
will focus on the effective implementation of various policies to help the
industry weather current challenges, with emphasis on “five reinforcements”:
1. Reinforced Monitoring and Early Warning:
Conduct thorough analysis and assessments of the market, promptly releasing
data on industry trends to guide farmers in adjusting herd structures for
stable production.
2. Reinforced Capacity Stabilization:
Encourage local governments to expedite the distribution of funds for expanding
and improving core breeding cow herds, thereby sustaining the foundational
breeding stock and enhancing reproductive efficiency.
3. Reinforced Forage Supply Assurance:
Maximize support policies, such as the forage-to-grain conversion program and
alfalfa development initiatives, to help farmers secure forage reserves.
4. Reinforced Financial Support:
Facilitate support from financial institutions through reasonable loan
extensions, renewals, and other measures without arbitrary loan restrictions.
Primary production regions are actively implementing these measures with robust
backing from financial institutions.
5. Reinforced Technical Support Services:
Promote a series of efficient and practical technologies focused on breeding,
feed, health, and management to help farmers reduce costs, improve quality, and
increase efficiency.