June 19, 2025

China's pig farming industry in race to slash production costs

In 2025, China's pig farming industry officially enters a new era of cost competition — most major pig companies have set ambitious targets to reduce production costs to ¥13/kg (US$1.80), while top players like Muyuan, Wens, and Shennong aim for a more aggressive goal of ¥10/kg (US$1.39).

The crisis of 2023—marked by persistently low pig prices, high farming costs, and significant financial losses—has set the tone for the industry. It highlighted the urgent need to reduce costs and improve operational efficiency in 2024 and beyond.

At the start of 2025, leading pig farming companies publicly announced their cost-reduction targets:

    - Muyuan aims to gradually reduce its cost to ¥12/kg (US$1.67);

    - Wens targets an average comprehensive cost of ¥6.5/jin (¥13/kg or US$1.80) for the year;

    - Shennong seeks to keep its total cost below ¥13/kg (US$1.80);

    - ST Tianbang plans to bring fattening costs below ¥12.8/kg (US$1.78).

Muyuan reduced its breeding cost from ¥15.50/kg (US$2.15) in January 2023 to ¥14.50/kg (US$2.01) in Q3 2024 — then to ¥13.70/kg (US$1.90) by the end of Q3 and further down to ¥12.50/kg (US$1.74) by Q1 2025.

By the start of 2025, most major producers had cut costs below ¥13.50/kg (US$1.87).

Despite challenges, large companies remain committed to cost reduction, with technological innovation playing a pivotal role:

With the help of technology, the number of pigs managed per worker can see a significant jump from 800 to 2,000.

The 'company + modern family farm' model has undergone digital transformation. Real-time monitoring via Internet of Things (IoT) enables centralized, standardized management, improving feed efficiency and reducing feed-to-meat ratios at the commercial pig farm level.

As the industry moves toward the ¥10/kg (US$1.39) cost benchmark, China's pig farming sector is shifting from a labor-intensive industry to a technology-intensive one. This transformation is not only crucial to the survival of pig producers — it will also drive the entire industry toward a more efficient, sustainable, and environmentally responsible future.

 

About EFL AG-DATA

EFL AG-DATA is a startup incubated by Singapore's Nanyang Technological University's Innovation and Enterprise Company (NTUitive) Incubator Program. It is developing an agricultural hub that will revolutionize the feed-to-meat supply chain in China and Southeast Asia countries through data-driven solutions. EFL's mission is to empower farms through innovative data-based services that solve complex problems and enhance productivity.

 

- EFL AG-DATA