BEIJING — China will expand the scale of subsidized loans and increase risk tolerance on loans to pig farmers as part of efforts to boost hog production, authorities announced on March 18.

Farms with an annual output of more than 500 pigs will enjoy favorable interest rates on loans, as compared with a benchmark of 5,000 previously, according to a joint statement issued by the Ministry of Agriculture and Rural Affairs, the Ministry of Finance and the China Banking and Insurance Regulatory Commission.

Banks are encouraged to raise their risk tolerance on loans to pig farmers and accept a broader range of collateral for such loans.

The country's policy banks should play a key role in guiding funds into the hog production sector, according to the statement.

China has been taking multi-pronged measures to boost the supply of pork as prices of the staple meat soared in the past months, affected by the African swine fever and cyclical factors.

The latest data shows that pork prices edged down last week as hog production increased and demand softened.