October 22, 2024

 

China's pork production falls for third consecutive quarter amid weak consumption

China's pork production in the third quarter of 2024 dropped by 0.8% compared to the same period last year, according to government data, Reuters reported.

 

This marks the third consecutive quarter of decline, attributed to weak meat consumption impacting slaughter rates.

 

From June to September 2024, the world's largest pork producer recorded an output of 12.59 million metric tonnes, based on data from the country's National Bureau of Statistics. The decline reflects a broader slowdown in meat demand in China, where consumers, who account for nearly half of the world's pork consumption, are cutting back amid a sluggish economy.

 

"Supply pressure still exists in the market with no obvious improvement in demand," noted Boyar, a Beijing-based agribusiness consultancy. "Supply and demand are at a stalemate."

 

For the first nine months of 2024, pork production fell by 1.4% to 42.4 million tonnes. Data shows that farmers slaughtered 520.3 million swine during this period, a 3.2% decrease compared to the previous year.

 

At the end of September, China's swine herd stood at 426.94 million heads, down 3.5% from the previous year. This reduction is aligned with the government's efforts to address an overcapacity of swine, which has led to depressed pork prices in recent years.

 

Some livestock companies reported profits in the third quarter following three years of losses, driven by destocking and cost-cutting measures that helped stabilise swine prices. However, weak demand has limited price recovery.

 

Cash hog prices dropped to around CNY 17.17 (US$2.41) per kg, marking a four-month low, down from CNY 21 (US$2.95) in August 2024, according to data from consultancy MySteel.

 

Separate data from China's agriculture ministry showed that the sow herd at the end of August was 40.36 million, down 4.8% from the previous year.

 

-      Reuters