July 18, 2023

 

China's Q2 pork output increased 4.6%

 

China's second-quarter pork output rose 4.6% from a year earlier to 14.4 million tonnes, the highest in at least a decade for the period, Reuters calculations based on official data showed, as farmers raised more pigs on hopes of better demand.

 

The second quarter is normally the period with the lowest pork production, as it follows a surge in slaughter for China's Lunar New Year holidays in January and February.

 

But this year, supply has been abundant with the herd larger than a year earlier, even as demand is under pressure due to slow economic growth. China consumes about half of the world's pork.

 

Some hog breeders expanded their herds last year, adding to the large increase the prior year, as they sought to grab market share in a rapidly consolidating market.

 

However, with this year's weak prices, some farmers began to reduce herds in the second quarter, boosting slaughter volumes.

 

China's pork output in the first half of the year rose 3.2% from a year earlier to 30.3 million tonnes, data from the National Bureau of Statistics showed.

 

The country slaughtered 375.48 million hogs in the first six months of the year, up 2.6% from a year ago, while the pig herd also rose to 435.17 million in the second quarter from 430.94 million heads in the previous quarter, the data showed.

 

Data from the Chinese agriculture ministry shows the country's sow herd at the end of May was 1.6% higher than a year ago. However, large producers have said in recent months they will reduce output in the second half.

 

"They started to reduce production capacity this year after suffering losses for several months," said Rosa Wang, an analyst at Shanghai JC Intelligence Co Ltd.

  

- Reuters