March 6, 2024

 

China introduces new regulations to manage swine production amid oversupply concerns

China has announced fresh regulations aimed at controlling the nation's swine production capacity, responding to an oversupply of swine and financial losses incurred due to aggressive farm expansions in recent years, Reuters reported.

 

The swine farming sector, much like other industries in China such as homebuilding and electric vehicles, has prioritised rapid growth and market dominance over profitability, leading to a surplus of swine that has driven prices down and hindered imports.

 

Amidst declining demand, the industry has faced pressure to reduce breeding herds and offload farms to alleviate the oversupply.

 

In a notice issued by China's Agriculture Ministry, measures were outlined to prevent large fluctuations in swine production capacity effectively.

 

The notice highlighted the need for dynamic adjustments in the retention of breeding sows based on changes in pork consumption and production efficiency to ensure stable swine production.

 

China recently revised the normal retention target for breeding sows from 41 million to 39 million, aiming to better align with market demands.

 

According to the notice, regulatory actions will be activated in response to significant fluctuations in the number of breeding sows to maintain a steady swine supply.

 

The regulations also stipulate that the number of breeding swine in national core breeding farms should not fall below 120,000 and remain above 150,000, ensuring stability in production.

 

China, known for its significant swine farming industry accounting for half of the world's swine, has further outlined measures to stabilise the number of large swine farms, aiming to maintain them at more than 130,000.

 

-      Reuters