CITIC Securities: Lowering the target for normal pig inventory, capacity reduction is expected to continue

According to Golden Ten Data on May 21, a research report from CITIC Securities noted that the Ministry of Agriculture and Rural Affairs has revised and issued the Implementation Plan for the Comprehensive Regulation of Hog Production Capacity, lowering the national target for the normal stock of breeding sows to 37.5 million. The regulatory plan has been comprehensively refined, demonstrating a stronger determination to stabilize pig prices. Currently, hog prices are fluctuating at low levels. The enhanced policy efforts, combined with significant industry losses, are expected to further accelerate capacity reduction.