Hog production back to 80% of normal level, pork prices to decline

Hog production in China has recovered to 80 percent of the normal level and pork prices are expected to continue a downward streak in the near future, China National Radio reported on Sunday.

According to the Ministry of Agriculture and Rural Affairs, the inventories of live hogs and breeding sows nationwide have reached over 80 percent of past years, and recently the proportion of large-scale hog farms also has risen to 53 percent.

Xin Guochang, an official with the ministry's Animal Husbandry and Veterinary Bureau, said the ministry is confident in achieving the goal of restoring total hog production to the normal level by the end of this year.

In the meantime, pork prices have dropped to lower than 32 yuan ($4.80) per kilogram following the eight-day National Day holiday that ended on Oct 8, the lowest in four months, according to Soozhu.com, a market analysis website focusing on the pig industry.

Xia Chenfeng, a hog market analyst, said the steady increase of hog and breeding sow stocks, as well as sluggish consumer demand for pork and pork products, have contributed to the price decrease.

He added that pork prices in the short term are likely to continue to fall.

China's massive hog herds took a hard hit from the African swine fever outbreak that was first detected in August 2018. This year, the COVID-19 epidemic also exerted a toll on the industry by disrupting logistics and delaying work resumption during the height of the disease outbreak.