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12

2022

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11

Has China's Pork Market Entered the Phase of Unleashing its Production Capacity?

Source:

Soozhu

The hog price surged to a stage high of 28.4 yuan/kg on October 20 and has now fallen below 25 yuan/kg. Since mid-October, the excessive rise of pork prices reached the red line for "first-level warning", which poses more pressure for regulations to stabilize prices and ensure the supply.

 

The hog price surged to a stage high of 28.4 yuan/kg on October 20 and has now fallen below 25 yuan/kg. Since mid-October, the excessive rise of pork prices reached the red line for "first-level warning", which poses more pressure for regulations to stabilize prices and ensure the supply.

 

The state stepped up to release the frozen pork reserves to the market from the central to the local. On the other hand, the authority urged the listed pig enterprises and large-scale companies to sell more pork to the market. The leading pig giants took the lead and said they would no longer sell the secondary-fattening pigs to private livestock farmers.

 

Then the price of hog indeed began to punch down with a series of measures being carried out. Also, the breeding industry is active to sell hogs and pork to the market, yet some farmers start panic selling. The increasing supply and gloomy consumption have pulled the hog price down so far.

 

Besides the consumption falling short of expectations, the market may enter to the phase of unleashing production output. Based on consumption habits in the fourth quarter, people in the northern region will slaughter and consume more pork and those in the southern area will cook more cured and preserved pork. That is to say, the closer we get to the end of the year, the more pork supply will be released to the market. Compared with the situation in Oct, it can be said that the pork market has begun releasing capacity.