SunSirs: Pig Storage Policy Boosts Market Expectations in China

Recently, the national pig grain price ratio has remained below 5:1, in the first level warning range of excessive decline, and the pig industry has suffered deep losses. In order to stabilize market expectations and support pig prices, Huachu Network has issued a notice to launch the second batch of central reserve frozen pork rotation and storage in 2026 on April 3, with 10,000 tons listed for auction trading. Previously, in March, the country had completed the first batch of 10,000 tons of central storage, and multiple regions simultaneously initiated local storage. The cumulative storage of central and local governments exceeded 35,000 tons. The current pig production capacity is still at a high level, and policy collection and storage will continue to be strengthened. It is not ruled out that further efforts will be made to increase collection and storage, while guiding the industry to rationally reduce production capacity and alleviate the pressure of supply-demand imbalance.

The article points out that the national pig to grain ratio continues to be below 5:1, and the pig industry is deeply losing money. The central government will carry out the collection and storage of 10,000 tons of frozen pork on April 3, adding to the previous cumulative collection and storage of over 35,000 tons by the central and local governments. The policy aims to support prices and alleviate supply-demand imbalances. Collecting and storing directly increases market demand, reduces oversupply pressure, guides the industry to reduce production capacity, and is expected to significantly support the spot price of live pigs, which is positive for market sentiment.

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