November 11, 2024

 

China's pork output drops as sluggish demand limits slaughter rates

China's pork production saw a third consecutive quarterly decline, falling 0.8% in the third quarter from the previous year.

 

According to data from the country's National Bureau of Statistics (NBS), pork output from June to September in the world's largest pork-producing nation dropped to 12.59 million tonnes.

 

The decline reflects a broader trend in China, where meat consumption has slowed. The country, which consumes nearly half of the world's pork, has seen shoppers reduce spending amid an ongoing economic slowdown.

 

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

 

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

 

China's total swine herd, as of the end of September, was down 3.5% from the previous year to 426.94 million head. This reduction aligns with the government's efforts to address overcapacity, a problem that has depressed pork prices in recent years.

 

Some livestock companies have returned to profitability in the third quarter, following three years of losses. A combination of destocking and cost-cutting measures has helped stabilise hog prices. However, demand remains weak, limiting the price recovery.

 

Earlier this month, cash hog prices fell to a four-month low of US$2.41 per kg, down from a peak of US$2.95 in August, according to consultancy data from MySteel.

 

In a separate report, data from China's Ministry of Agriculture showed the sow herd at the end of August was down 4.8% year-on-year, standing at 40.36 million. This decline in the sow herd further reflects the ongoing efforts to manage overcapacity within the industry.

 

-      Reuters