Beijing | Reuters — China has called on its top hog producers to “take the lead” in cutting output, state-run Shanghai Securities News reported on Thursday, as the country battles a supply glut and sluggish consumer demand in its massive pork sector.
Why it matters: China has been a key buyer of Canadian pork, though trade tensions have spurred moves to diversify markets.
Read Also
Feds pause update on food from cloned livestock
Health Canada has indefinitely suspended a proposed update to the novel food policy governing foods derived from cloned cattle and swine, as well as their progeny.
At a high-level meeting on Tuesday, officials urged major companies – including Muyuan Foods and Wens Foodstuff – to reduce breeding sows, lower slaughter volumes, and keep hog weights around 120 kg, the report said.
The meeting, jointly held by the National Development and Reform Commission and the Ministry of Agriculture and Rural Affairs’ animal husbandry bureau, signals a stronger push by Beijing to rein in overcapacity and stabilize prices.
Authorities also plan to tighten credit for hog production capacity expansion and cut subsidies that fuel pig output growth, the report said.
The move comes as hog prices plunge to around 13 yuan (C$2.52) per kg, down from 18.8 yuan a year ago, according to consultancy MySteel, pressuring margins across the industry.
— Reporting by Ella Cao and Lewis Jackson
