Since 20 18, non-epidemic diseases have entered China, and the pig industry in China has been hit hard. The pig production capacity has dropped rapidly, which cannot meet the market demand, and the pork price has soared to a record high. In this regard, China mainly starts from two aspects. On the one hand, increase policy support for the pig industry and quickly restore the development of the local pig industry. On the other hand, the pork import in the international market is increased, and the pork import tax rate is included in the provisional tax rate, which is 4% lower than the MFN tax rate 12% promised by China in the WTO. Yes, the provisional tax rate is 8%, in order to import more pork by lowering the tariff.
So now the state has adjusted the tax rate to 12%. What is the reason? What's the impact?
Let's think backwards first. Why did China lower the pork tariff earlier? It is because the production capacity of live pigs in China has decreased and the supply of pork is insufficient, which leads to the high price of pork. The instability of rations directly shakes the foundation of a country. Therefore, the country attaches great importance to the supply of pork, and promotes the import of meat by reducing tariffs, so as to achieve the balance between supply and demand in the domestic pork market. But now, two years later, with the continuous recovery of China's pig production capacity, pork can fully meet the market demand, and even there has been a staged oversupply situation, which is just the opposite of two years ago. Therefore, at this time, the country in turn reduced the import of pork by raising the tax rate, alleviating the contradiction between supply and demand in the domestic pork market. As can be seen from the above, in fact, the adjustment of tariffs is mainly based on market supply and demand, and it is a lever to adjust market supply and demand.
In fact, as far as the current domestic pig production capacity is concerned, since the recovery of pig production capacity in the second quarter, pork imports have decreased significantly, mainly through the adjustment of market economy. Traders import pork for profit. However, according to the deep losses of China pig industry in the third quarter, imported pork no longer occupies the market advantage, and the decrease in profits is the main reason for traders to reduce pork imports. This time, with the official increase in import tariffs on pork, the profits of imported meat have been compressed again. It is conceivable that the total meat imports will further decline in the future.
The decline in the total amount of imported meat first affects the domestic pig price. As we all know, under the market economy, the relationship between supply and demand affects the price. The reduction of imported meat is equivalent to reducing the supply of the market, which is conducive to curbing the decline of pig prices and alleviating the losses of domestic pig farms. Secondly, it affects the upstream and downstream enterprises of the domestic pig industry, mainly affecting the pig industry chain such as feed enterprises and veterinary drug enterprises. Changes in one link in an industrial chain will inevitably affect other links. Finally, it's a cliche. The reduction of imported meat is also conducive to controlling the spread of the epidemic. In the past two years, China has also proved from practice that pork has never been imported from non-plague countries, and the domestic non-plague situation is generally controlled smoothly.