Chinese official warns hog farmers against ‘gambling’ amid plunging prices
By Global Times (China)
Jul 20, 2021
A Chinese official from the Ministry of Agriculture and Rural Affairs on Tuesday warned hog farmers not to gamble on the pork trade market by blindly cutting hog production, despite plunging pork prices.
At a press briefing in Beijing, Xin Guochang, an official at the ministry's Animal Husbandry and Veterinary Bureau urged farmers to closely follow official notices, weed out low-yielding sows, and continue to cut costs and improve efficiency.
Pig farmers should not gamble on the pork market, reduce output blindly or plan their herd size based on market speculation alone, Xin said, adding that the peak in profits is over.
Analysts noted that the golden age of profits from pork is over as the price for live pigs dwindled to 10 percent of the peak level.
The retail price for pork also dropped to 24.60 yuan ($3.79) per kilogram as of the end of June, down more than 50 percent from the peak of 59.64 yuan in February 2020, according to Xin. Prices have fallen for five consecutive months this year...