China currently accounts for about half of the world's pig population. However, the industry is suffering from overproduction amid weak consumer demand. As of the end of June, the country's sow population reached 40.43 million, exceeding the recognised ‘normal’ level of 39 million.
Prices for live pigs have fallen sharply, dropping below 14 yuan ($1.95) per kilogram this week, compared to around 20 yuan a year ago, according to data from analytics company MySteel.
According to a statement from the Chinese Animal Husbandry Association, the meeting will also discuss measures to restrict the practice of ‘secondary fattening’ — a speculative strategy that involves keeping pigs for additional fattening in order to profit from price fluctuations. In addition, there will be talk of tightening control over the slaughter weight of animals.
Back in June, Reuters reported on the launch of a campaign against ‘secondary fattening’ initiated by the authorities to stabilise the market. And in July, the Chinese Ministry of Agriculture confirmed its intentions to reduce the number of sows, control slaughter weights and limit new pig farming capacity.
These measures are also expected to reduce soybean meal consumption amid tense trade relations with the United States and concerns about potential disruptions to soybean supplies in the fourth quarter.