As of the end of October, the number of sows dropped below 40 million. By comparison, at the end of September the figure stood at 40.35 million. Over the past year, China has faced a severe oversupply of pork, leading to falling prices and increased financial pressure on producers.
In response, central authorities are urging major hog producers to reduce output. Domestic demand for pork remains weak, while supply is excessive — a combination that threatens further declines in profitability across the sector.
During a meeting held last Friday, the ministry stated that:
- tighter regulation of production capacity in pig farming is necessary;
- the national sow herd target will be “dynamically” adjusted depending on market conditions;
- counter-cyclical mechanisms must be applied in a timely manner to prevent sharp price fluctuations;
- large producers should improve efficiency and product quality;
- small and medium-sized farms will receive support to develop “appropriately scaled” operations.
Analysts note that China — the world’s largest pork producer and consumer — traditionally manages the industry by adjusting its sow herd, a key indicator of future meat supply. The reduction in breeding stock indicates the government’s intention to ease market pressure and restore balance.
In the coming months, Beijing is expected to continue tightening its regulatory approach in order to stabilise prices and prevent new cycles of abrupt surges and collapses in domestic pork supply.
PigUA.info based on materials from thepigsite.com