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.
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 stabilise 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 ($1.83) per kg, down from 18.8 yuan a year ago, according to consultancy MySteel, pressuring margins across the industry.
As of 0607 GMT, shares of Muyuan had slipped 2%, while Wens tumbled 3%.
($1 = 7.1102 Chinese yuan renminbi)
(Reporting by Ella Cao and Lewis Jackson; Editing by Christian Schmollinger)
