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Pork production increased by 1.4% at the first half of 2018, and hog supply will be relatively sufficient throughout the year.

China Agriculture Report By CnAgri2018-08-09 15:56:26China Agriculture Report Print According to data from the National Bureau of Statistics, in the first half of 2018, domestic hog slaughter reached 334.22 million heads, up by 1.2% year-on-year; pork production was 26.14 million tons, an increase of 1.4% year-on-year. It’s seen that domestic actual production capacity of hogs was increasing at the first half of 2018. It’s estimated that pork supply will be relatively loose throughout the whole year.
The main reason for the increase in domestic pork production is the gradual release of large groups’ pig production capacity and the further increase of their market shares. Nine listed pig farming enterprises including Wens, Muyuan, Zhengbang, Truein, Tech-Bank, TECON, Luoniushan, Longda Meat, and KINGSINO sold 20.29 million hogs in the first half of 2018, which accounted for 6.1% of the national hog production and increased 1.5% from the 4.6% in the same period of last year. Among them, Muyuan, Zhengbang, and Tech-Bank maintained relatively higher growths, increasing by 61%, 157%, and 103% respectively.
However, hog prices dropped sharply in the first half of 2018, hog farming suffered losses. Among main listed hog enterprises, Wens Group achieved profitability as it also has broiler businesses, and other enterprises mostly suffered losses to varying degrees. Muyuan and some other companies have slowed down the expansion of hog production capacity. However the capacity in 2018 and 2019 has been arranged in 2016 and 2017, so the hog production capacity of groups will continue to be released in recent two years.
It’s expected that hog slaughter will increase year on year in the second half of 2018, and hog supply will be loose relatively throughout the year. The lowest prices of this pig cycle or will first appear in April and May, 2019, and the inflection point or will occur in 2020.

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