The A-shares pig farming sector is surging strongly, with leading companies signaling a reduction in production capacity?

Ask AI · How can policy regulation work together with enterprises to reduce capacity and restore the live pig market?

Everyday Economic News Reporter: Xu Shuai    Editor: Yang Yi

On April 2nd, the A-share live pig breeding sector surged strongly, with Juxing Agriculture (SH603477) hitting the daily limit, and Muyuan Foods (SZ002714), Shennong Group (SH605296), and others following the rise. However, by the close today (April 3rd), related stocks experienced a pullback. In terms of news, besides the central government’s release of frozen pork storage work signaling price stabilization, signals from leading companies to reduce capacity have also become market focus.

For example, recently, Wen’s Shares (SZ300498) stated that they plan to supply 5 million live piglets annually by lowering the slaughter weight to ease oversupply pressure. Meanwhile, other listed live pig breeding companies also expressed on investor interaction platforms that they are responding to relevant policy calls by scientifically adjusting production and operational strategies.

In response, a securities analyst said that policy regulation working together with enterprises’ proactive capacity reduction could help gradually restore the fundamentals of live pig breeding.

Wen’s Shares Responds to Capacity Regulation

On April 2nd, Xinhua News Agency released a message stating that to maintain stable pork market operation and better play the role of central reserves in regulation, the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Finance are currently carrying out central reserve frozen pork storage work. Next, the Ministry of Commerce will continue to closely monitor pork market trends, strengthen trend analysis, coordinate with relevant departments to manage reserve regulation, and ensure market stability.

On March 20th, the National Development and Reform Commission’s website showed that relevant departments of the National Development and Reform Commission and the Ministry of Agriculture and Rural Affairs organized a symposium with live pig breeding enterprises to analyze and assess price trends and arrange market regulation work. The meeting pointed out that, affected by factors such as post-holiday consumption decline, live pig prices have fallen and entered an over-decline warning zone.

From the companies’ actions, some leading live pig breeding enterprises have recently issued signals of capacity reduction.

For example, on the evening of March 31st, Wen’s Shares’ official WeChat account issued a message stating that the company is responding to capacity regulation and plans to supply 5 million live piglets annually.

Specifically, by 2025, Wen’s Shares plans to sell 40.48M pigs, including 5.03M piglets. Wen’s Shares stated that they will supply the market with 5 million live piglets and roasted pig products annually as an important way to sell piglets; this move aims to reduce slaughter weight and avoid overstocking, thereby alleviating capacity surplus.

In fact, in the first quarter of this year, piglet prices unexpectedly declined, mainly because the reproductive efficiency of breeding sows has continuously improved, expanding piglet supply.

Previously, Fan Qingqing, senior analyst of the live pig market at Zhuochuang Information, told the Daily Economic News that, according to Zhuochuang’s statistics, as of February 2026, the breeding sow inventory of sample enterprises was only 3.23% below its peak in June 2025, not reaching the capacity reduction target; in February 2026, the number of newborn piglets increased by 4% year-on-year, and combined with sluggish pig prices, the fattening mode for piglets is basically operating at a loss.

Multiple listed companies respond to capacity reduction

In early March, another leading live pig breeding company—Muyuan Foods—also mentioned the reduction of breeding sow capacity.

At that time, Qin Yinglin, chairman of Muyuan, told the Daily Economic News that, in the face of the overall situation, leading companies have a responsibility to actively respond to capacity reduction policies, proactively reduce capacity, and truly cut capacity; the company’s breeding sow count has decreased from 3.62 million at the beginning of 2025 to 3.13 million in January 2026, a cumulative reduction of nearly 500k.

At the end of March, New Hope (SZ000876) responded via investor interaction platform that the company will firmly respond to capacity regulation policies.

Meanwhile, Tangrenshen (SZ002567) also stated through investor interaction that the company will actively pay attention to relevant policies and respond based on market and company conditions; currently, the company’s core task is to continuously improve breeding costs and achieve high-quality development of the pig industry.

On the investor platform, Dongrui Shares (SZ001201) also said that the announced slaughter target is based on current capacity layout and annual production plans, and the company will continue to monitor industry policy developments, adjust production and operational strategies scientifically based on market supply and demand changes. Zhengbang Technology (SZ002157) also stated that the company will formulate its 2026 slaughter plan by considering its own production and operation plans and market conditions.

Previously, in conversations with personnel from a leading pig breeding enterprise, the Daily Economic News learned that currently, pig prices are sluggish, and large-scale enterprises tend to reduce capacity, including decreasing breeding sows and fattening pig inventories, but this is a process.

Data from the Ministry of Agriculture and Rural Affairs shows that in the fourth week of March, the national average pig price fell to 10.68 yuan per kilogram, down 3.3% week-on-week and 29.8% year-on-year.

In response, an analyst from Shanxi Securities Agricultural Research Institute said that since the industry’s overall debt reduction and asset-liability restructuring tasks are not yet complete, if prices remain low, it could further promote market-driven capacity reduction. Under the guidance of policies aimed at “countering internal competition” in the pig breeding industry, capacity reduction under policy regulation will also be promoted simultaneously.

Daily Economic News