China’s livestock industry is experiencing stable growth and market supply, particularly in the pork sector. Despite the recent rise in pork prices, the overall supply of meat, eggs, and dairy remains abundant. With breeding stock levels well within the optimal range, the market is well-positioned to meet consumer demand while maintaining profitability for farmers.

On July 24, Wang Lejun, Chief Livestock Specialist at the Ministry of Agriculture and Rural Affairs of China, announced that the overall market supply for livestock products remains robust despite the recent uptick in pork prices. This assurance was provided during a press briefing by the State Council Information Office, highlighting the substantial increase in meat, egg, and dairy production this year.

Production Growth

China has seen significant growth in its livestock sector in the first half of 2023. The production of pork, beef, mutton, and poultry increased by 0.6% year-on-year, while poultry egg production rose by 2.7% and milk production by 3.4%. These figures indicate a stable and abundant supply of livestock products, contributing to overall market stability despite lower price levels.

Pork Industry Insights

The pork sector, in particular, has shown notable resilience. Adjustments in market regulation and capacity control have led to a high-level recalibration of pork production capacity, causing prices to rise. This price recovery has restored normal profitability for pig farming operations.

Breeding Stock and Market Supply

As of June, the inventory of breeding sows stood at 40.38 million, which is 103.5% of the normal holding capacity of 39 million. This indicates that the breeding capacity is within a reasonable and controlled range. Although the inventory of medium-to-large pigs decreased by 6.4% year-on-year by the end of June, the increased holding back of pigs and secondary fattening following the price rise ensures that market supply remains secure.

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