Dim Sums: Agricultural Markets in China

Systemic problems in China may have accelerated the spread of African swine fever, a dangerous pig virus that has no cure or vaccine. According to an investigative piece by Chinese business portal Caixin last month, divergent interests of central and local officials, money worries and "political tasks" created incentives to hide disease reports. Lacking reliable information, farmers panicked and liquidated herds when they heard rumors of disease in their neighborhood. Big regional price differences due to localized pig liquidations and quarantines created strong incentives to truck pigs and pathogens around the country. Traders flouting bans easily evaded authorities--and were often abetted by corrupt veterinary officials who sold fraudulent health certificates and ear tags. China's first cases of African swine fever (ASF) were reported in August 2018. Within 8 months the virus had spread to all 31 provincial regions, including the remote Himalayan region of Tibet and ...

"Backyard" livestock farmers in China favor eliminating subsidies that go primarily to large livestock farms, according to a commentary posted on many Chinese web sites earlier this week. The article appeared on swine industry and social media sites with varying titles such as, "The reason backyard farmers oppose subsidies is shocking!" "Upper levels of government were shocked," and "The truth! Why does poverty increase at the same time the State gives more subsidies?" The author was not identified. The commentary criticized livestock farm subsidies as unfair because the money goes mainly to big farms or disappears in the bureaucracy while poor farmers who need the money get nothing. Small farmers' resentment is magnified when they see expansions by subsidized large farms depressing prices and forcing the small farms out of business. "Although [the money] is for industry [development] and environmental protection, they are tears for...