China’s Ministry of Agriculture and Rural Affairs has indicated a decline in the country’s hog, sow, and piglet herds following government initiatives aimed at reducing production capacity. The reduction in herd sizes comes as part of Beijing’s efforts to address oversupply issues and a prolonged period of low prices, with the expectation of price recovery in the second quarter.
In response to a rapid expansion that led to oversupply, the Chinese government has encouraged pig enterprises, which account for half of the world’s pig population, to scale back hog capacity. Additionally, the national target for normal retention of breeding sows has been revised down to 39 million from 41 million for the current year.
As of the end of March, China’s sow herd stood at 39.92 million heads, reflecting a 7.3% decrease compared to the previous year. The ministry anticipates a reduction in slaughter volumes during the second quarter, leading to an improvement in the supply and demand dynamics within the pig market. According to Lei Liugong, the ministry’s director of market and information technology, this could result in pig breeders returning to profitability.
Data from the National Bureau of Statistics revealed a 5.2% decline in China’s pig herd size to 408.5 million heads at the end of March. Looking ahead, the ministry aims to focus on stabilizing production capacity, implementing stable policies, preventing epidemics, and continuing efforts to stabilize pig production and supply.