China Seeks Reduction in Pig Breeding Herds to Ease Oversupply

China is urging top pig farmers to scale back breeding herds by about 2%, the latest push to tackle oversupply in the country’s food sector, which has sparked concerns over deflation.

Farmers’ representatives are expected to gather next week to discuss effective ways to shrink sow herds by 1 million, along with other measures to rein in pork production, China’s state-backed official husbandry association said in a notice.

China has organized a slew of meetings to discuss reining in pork production recently, signaling Beijing’s commitment to support prices of the country’s most consumed meat. As with other industries, authorities have called on the husbandry sector to tackle oversupply and be prudent with adding new production capacity.

The world’s top pork producer and consumer had 40.43 million sows by the end of June, according to official data, which fell within the acceptable range outlined by regulations. Still, consumption of the meat has been tepid as a slowing economy strained consumers’ purchasing power. Pork prices have slumped nearly 20% in the past year.

Next week’s meeting will also discuss how to control the weight of pigs to be slaughtered, and reduce secondary fattening, according to the association’s notice.