To address domestic pork oversupply, China’s National Development and Reform Commission (NDRC) has requested the country’s 25 largest pig producers to report to the government by September 16 on the production cuts already implemented and those planned. Expected participants include Muyuan Foods, Wens, Shuanghui, New Hope, Dekang, Tianbang, COFCO, Dabeinong, and other major enterprises. The Ministry of Agriculture and Rural Affairs (MARA), together with the Price Department of the NDRC, will hold a forum in Beijing to assess the current production situation, exchange experiences on implementing production control measures, and plan capacity adjustment work for the second half of this year and the next year.
The NDRC emphasized that pork oversupply is creating deflationary pressure on the slowing economy. Over the past year, wholesale pork prices have fallen nearly 25%, primarily due to weakened consumer demand. Studies indicate that reducing around one million sows is necessary to support pork prices, prevent deflation, and safeguard producers’ incomes. Consequently, leading enterprises are required to specify their sow culling plans by year-end and report next year’s production schedule to the authorities.
Although signals for production cuts were issued starting in May, progress in reducing capacity has been limited. The national sow inventory remained at 40.42 million heads from the end of May to the end of July. Meanwhile, listed pig enterprises reported significantly higher output in August, with 20 leading companies collectively selling 16.8438 million pigs, reflecting continued growth in market supply.
