The National Development and Reform Commission (NDRC) has instructed provincial NDRCs to interview companies in the hog industry and hog information sites about public statements or social media posts which were deliberately meant to drive up hog prices or contribute to excessive bullishness in the market.
During its meeting with large hog producers at the beginning of the month, the NDRC stated that some companies said their statements or social media posts played up the bullish sentiment in the market and suggested the government strengthen its supervision role to ensure “rational trading”.
In today’s announcement, the NDRC said some companies had deliberately stocked bullish sentiment in order to sell feed additives and veterinary medicine to farmers. They said these actions led farmers to avoid sales, hold onto hogs longer, and feed hogs to heavier weights in hopes of getting higher prices. The commission said it would work with relevant agencies to crack down on false information and rumors, but also said producers of these self-published stories should not “play up the bullish atmosphere in order to attract eyeballs, increase traffic, and promote products”.