According to data from the National Bureau of Statistics (NBS), Chinese producers slaughtered 200.26 million pigs between January and March, up 2.8% compared to the same period last year. One of the key drivers behind the increase in production was the acceleration of slaughter rates amid excess supply.
At the same time, herd reduction has been progressing more slowly than expected. Analysts note that this, combined with weak demand, continues to limit price recovery. Currently, live hog prices in China hover around 8.7 yuan/kg, significantly lower than last year’s level of 14.9 yuan/kg.
Experts emphasize that production growth is also being driven by rising productivity, even as herd sizes gradually decline. Meanwhile, the oversupply situation in the market remains critical.
In response, Chinese authorities are intensifying measures to rebalance the market, urging large producers to reduce sow herds, maintain slaughter weights at around 120 kg, and tighten access to credit and subsidies to curb excess supply.
Analysts expect some price recovery in the second half of the year; however, in the short term, the market is likely to remain under pressure due to the imbalance between supply and demand.
PigUA.info, based on ThePigSite.com