Pig breeders such as Muyuan Foods (SHE:002714) and Wens Foodstuff Group (SHE:300498) were urged to cut their production volume to tackle slow demand, Reuters reported late Thursday, citing state-backed news agency Shanghai Securities.
Officials meet with the firms during a high-level meeting on Tuesday, where the companies were asked to trim the volume of breeding sows, as well as slaughter volumes. The weight of hogs are also asked to be capped at around 120 kilograms, the report said.
The call was made as hog prices dropped year on year to 13 yuan per kilogram from 18.8 yuan per kilogram, the media outlet said, citing consultancy MySteel.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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