New data from WEPIG Technology sheds light on key economic trends in China’s swine industry. Finishing pigs achieve a 24% gross margin, with CNY 548 (~USD 75) profit per pig, exceeding industry averages. Feed costs account for 57.15%, while FCR is 2.63, signaling room for efficiency gains.
Reproductive performance is improving, with PSY at 24.03 and NPD reduced to 46.63. The report highlights early culling of older sows as a key strategy for herd optimization. As smart farming and precision livestock management expand, digital solutions are shaping the future of China’s pig industry.
New data from WEPIG Technology, a provider of digital solutions for pig farms, sheds light on key economic trends in China’s swine industry. The insights come from the “2024 Pig Industry Benchmarking Report,” offering a deep dive into cost structures, performance metrics, and reproductive efficiency.
Strong Margins on Finishing Pigs
One of the report’s standout findings is a gross margin of over 24% on monitored finishing pigs. This translates into an average profit of CNY 548 (~USD 75) per pig, based on:
- Production cost: CNY 1,722 (~USD 237)
- Sale price: CNY 2,270 (~USD 312)
This margin significantly outperforms the Ministry of Agriculture and Rural Affairs’ industry average of CNY 214 (~USD 30) per head, suggesting that farms leveraging digital management solutions may be achieving superior profitability.
Cost Structure: Feed Dominates Expenses
The report also breaks down the cost composition in pig production:
- Feed costs: 57.15% (by far the largest component)
- Labour costs: 10.24%
- Other operational costs: 30.33%
- Pharmaceuticals: 1.46%
Weaning costs stand at CNY 372.68 (~USD 51) per piglet, while the cost of fattening sits at CNY 11.38 (~USD 1.56) per kg of weight gain.
Performance Metrics: Room for Efficiency Gains
Key production indicators show:
- Market weight: 129.25 kg per pig
- Feeding period: 155.58 days
- Daily weight gain: 771 grams
- Feed Conversion Ratio (FCR): 2.63
While profitability and growth rates are strong, feed efficiency remains a challenge. WEPIG Technology suggests that farms can optimize further through:
- Better feed management strategies
- Enhanced health monitoring
- Genetic improvements
Boosting Sow Reproductive Performance
The report also highlights gains in sow productivity, with clear improvements in reproductive performance:
- Piglets born alive per litter: 12.44
- Weaned piglets per litter: 10.98
- Pigs per sow per year (PSY): 24.03 (+4 points YoY)
- Non-productive sow days (NPD): Reduced to 46.63
The data also supports the early culling of older sows. Sows with four litters showed the best reproductive performance, whereas those with nine or more litters had declining mating and farrowing success.
“This strongly suggests that accelerating the culling process of older sows can help optimize herd structure and enhance overall reproductive efficiency,” WEPIG stated in the report.
The 2024 Pig Industry Benchmarking Report underscores the impact of digital solutions on swine farm efficiency and profitability. With feed costs dominating expenditures and reproductive performance improving, the findings point to opportunities for further efficiency gains through digital management and genetic improvements.
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