The Fujian government restricted hog production along the Jiulongjiang River because of environmental concerns, reported Beijing’s state-owned Xinhua news agency on April 14, resulting in more than US$15 million (100 million yuan) in losses to local producers over the course of the previous month.
As of March 19, more than 12,000 hog farms in Zhangzhou have been shut down, and about 700,000 head of hogs have been slaughtered or sold out, the agency reported, and further constriction is expected.
Hog prices dropped sharply when farmers rushed to sell off their stocks, with the prices of sows falling from 1,500 to 1,000 yuan per head.
Farmers who were able to shut down operations before their cut-off dates qualified for compensation of 50 yuan per square meter.
According to the local government, hog farms were responsible for the pollution in the Jiulongjiang River – the second biggest river in the Fujian province.
Under the new rules that went effect in February, no hog farm can be located within one kilometer of the river. In addition, no new farms can be established within five kilometers of the river.