November 3, 2023

 

China's live swine prices witness sharp weekly decline

China's live swine prices have experienced a significant decrease of nearly 7% in a week, marking the most substantial weekly decline of this year, Pork Business reported.

 

The decline is attributed to the emergence of fresh disease outbreaks, prompting farmers to send more swine to slaughter, adding to an already over-supplied market, according to analysts.

 

As the world's leading pork market, China has witnessed a price drop to CNY 14.06 per kg, which is the lowest level since late June, based on data from Shanghai JC Intelligence Co Ltd.

 

The Ministry of Agriculture and Rural Affairs has not yet commented on the situation.

 

In addition to these localised disease outbreaks, there is ongoing concern in the industry, with the price of culled sows reaching a two-year low.

 

Chinese swine producers have been facing challenges in turning a profit this year, as supply has outpaced demand, even during the typical peak consumption period in winter.

 

China's sow population stood at 42.4 million at the end of September, representing a 3.4% increase from the usual levels, as reported by an agriculture official earlier this month. The production efficiency of sows is on the rise, leading to further supply increases.

 

Swine prices started to decline again in late September after a brief rebound in August, despite the onset of the usual peak consumption period in the winter.

 

According to analysts, the industry may be experiencing a "cash flow inflection point," prompting a faster reduction of overcapacity in the market. Tight cash flow has been a recurring issue, with many breeders facing three consecutive quarters of losses.

 

-      Pork Business