Beijing urges top hog producers to cut output, state media says

Beijing | Reuters — China has referred to as on its high hog producers to “take the lead” in cutting output, state-run Shanghai Securities Information reported on Thursday, because the nation battles a provide glut and sluggish shopper demand in its large pork sector.

Why it issues: China has been a key purchaser of Canadian pork, although commerce tensions have spurred moves to diversify markets.

At a high-level assembly on Tuesday, officers urged main firms – together with Muyuan Meals and Wens Foodstuff – to cut back breeding sows, decrease slaughter volumes, and keep hog weights around 120 kg, the report stated.

The assembly, collectively held by the Nationwide Growth and Reform Fee and the Ministry of Agriculture and Rural Affairs’ animal husbandry bureau, indicators a stronger push by Beijing to rein in overcapacity and stabilize costs.

Authorities additionally plan to tighten credit score for hog manufacturing capability enlargement and reduce subsidies that gasoline pig output development, the report stated.

The transfer comes as hog costs plunge to round 13 yuan (C$2.52) per kg, down from 18.8 yuan a yr in the past, in keeping with consultancy MySteel, pressuring margins throughout the business.

— Reporting by Ella Cao and Lewis Jackson

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