On October 25, the State Council Information Office held a press conference to discuss the agricultural and rural economic operations for the first three quarters of 2024. During the event, a reporter raised a question: “Recently, there has been a notable drop in the prices of cattle and dairy cows, leading to losses for farmers and garnering widespread public concern. What is the current production situation for beef and dairy cattle? What measures is the Ministry of Agriculture and Rural Affairs planning to take to assist farmers during this challenging time?”
In response, Zhang Xingwang, Vice Minister of the Ministry of Agriculture and Rural Affairs, acknowledged the issue, stating, “This is indeed a significant problem we’ve encountered this year, and it’s a considerable challenge. It impacts not only the income of cattle farmers but also the healthy and sustainable development of the entire beef industry.”
Zhang highlighted that since last year, prices for beef and dairy products have consistently declined, making it difficult for farmers and leading to a complex and severe industry landscape. However, he noted that through concerted efforts, adjustments to beef cattle inventory have been made, the growth rate of dairy cattle has slowed, and prices have started to stabilize and rise, easing some of the losses.
Zhang provided insights into the proactive steps the Ministry is taking to address these pressing challenges. “We are giving this situation our utmost attention and have initiated rapid action to support farmers and businesses. We have conducted multiple specialized studies and sent working groups to key production areas for on-the-ground research and guidance. We have also released technical guidance aimed at reducing production costs and have enhanced communication with relevant departments to strengthen financial and policy support, helping farmers mitigate losses.
At the end of September, in collaboration with the National Development and Reform Commission and other six departments, we issued a notification focused on promoting stable development in beef and dairy production, outlining a comprehensive package of seven policy measures. Major producing regions such as Inner Mongolia and Xinjiang have also taken proactive steps, introducing practical policies like farming subsidies and fresh milk powder subsidies tailored to local conditions, which have effectively alleviated some production difficulties.”
Looking ahead, Zhang stated that the ministry will continue to guide localities in implementing these policies swiftly and effectively. The focus will be on reinforcing five key areas:
1. **Strengthening Monitoring and Early Warning**: Conducting thorough analyses of the situation and timely release of relevant data to guide farmers in adjusting their herds and stabilizing production.
2. **Stabilizing Production Capacity**: Encouraging local authorities to expedite the disbursement of funds for enhancing foundational breeding herds, ensuring a steady population of foundational cows, and improving their breeding performance.
3. **Ensuring Feed Supply**: Fully utilizing policies that support the conversion of grains to fodder and the development of alfalfa, to help farmers stockpile adequate feed supplies.
4. **Enhancing Financial Support**: Promoting financial institutions to provide assistance through reasonable loan extensions and renewals, avoiding simplistic actions like sudden loan withdrawals, especially in key producing areas.
5. **Strengthening Technical Guidance**: Integrating and promoting efficient and practical technologies across key areas such as breeding, feed, disease management, and overall management to help farmers reduce costs, improve quality, and enhance efficiency.
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