According to Sina Finance, the hog slaughtering industry achieved a significant breakthrough in profitability in 2025, reaching a five-year peak. As of October 31, the annual average gross profit margin stood at RMB31.99 per head, marking a year-on-year increase of 341.85% and successfully turning losses into profits. Although the annual trend followed the seasonal pattern of “high at both ends, low in the middle,” the key inflection point occurred one month earlier than usual. Even during the traditional low season in July, the average gross profit remained at RMB 14.02 per head, exceeding the historical average for that period.

The core drivers of this shift were: policy guidance prompting farmers to proactively reduce livestock weight and accelerate market release, effectively alleviating cost pressures in the slaughtering segment; simultaneously, sustained release of low-price pork demand at the retail end drove steady expansion in slaughter volumes, creating a synergistic effect for profit recovery.

Looking at key points throughout the year, January saw the gross-white price spread pushed higher by Spring Festival demand, reaching an annual peak of ¥58.94 per head. Post-holiday consumption weakened, causing gross profit to decline. After bottoming out in July, gross profit rebounded significantly during the “Golden September and Silver October” period, supported by increased demand and low procurement costs.

Looking ahead to 2026, hog slaughter gross profit margins will continue to follow the seasonal pattern of “high at both ends, low in the middle.” However, the main characteristics will be narrower profit growth and a weakening of the holiday effect. The annual average gross profit margin is projected to reach 37.26 RMB per head, representing a year-on-year increase of 7.79%, a significantly narrower growth rate compared to 2025.

Specifically: - February will see gross profit peak at ¥60.00/head due to extended Spring Festival stockpiling, resulting in a smaller-than-usual decline in slaughter volume. - Post-Spring Festival consumption enters a slow season, but low procurement costs will limit profit declines to around ¥40/head—less severe than previous years. From May to August, weak demand will push gross profit to its annual low of ¥17.81 per head in July. In the fourth quarter, driven by holiday stockpiling and cured meat demand, gross profit will rebound to a high of ¥53.00 per head.

Notably, as pork supply remains ample, consumer preferences shift toward fresh products, and alternatives proliferate, the festive season's impact on slaughter volumes continues to diminish. By 2026, pre-holiday slaughter growth is projected to fall below 3%, limiting the slaughter sector's ability to expand profits through seasonal demand.

As an integrated internet platform providing benchmark prices, on November 18, the benchmark price of live pigs on SunSirs was 11.85 RMB /kg, a decrease of 4.67% compared with the beginning of the month (12.43 RMB/kg).

Application of SunSirs Benchmark Pricing：

Traders can price spot and contract transactions based on the pricing principle of agreed markup and pricing formula (Transaction price=SunSirs price + Markup).

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