Supply remains the key factor determining price fluctuations at the current stage

At present, the scale of China's domestic breeding industry has shrunk significantly, with both the hog inventory and the inventory of breeding sows continuing to decline. Although the recovery in hog prices has to some extent halted the culling process, under the pressure of environmental protection policies, the elimination contest is still ongoing. Hog supply is in a process of continuous reduction, and this situation will become even more pronounced in the second half of the year. There is no doubt that hog prices are currently in the upward phase of the hog cycle, but we can clearly see that the main factor and the fundamental factor supporting and driving hog prices up is the reduction in hog supply. Demand has not changed much at present, and industry insiders expect that the room for growth in the pork demand market in the future will not be very large either. Therefore, whether viewed from the long term or the near term, supply determines price fluctuations. That makes it especially necessary for our downstream breeding community to properly control its own scale and structure, and hog farmers should accept market trends with an attitude that is neither servile nor overbearing, neither greedy nor abandoning.