Another failed auction! Across eight batches, cumulative government stockpiling has totaled just 91,600 tons. Pork imports have hit a new low—has the era of profitability for pig farmers arrived?

As of now, the cumulative planned procurement and storage for the year stands at 318,000 tonnes. Although the final transaction results were less than ideal, with hog prices continuing to rise, the government has nonetheless persisted in its procurement and storage program, bolstering market confidence and increasing resistance among slaughterhouses to purchasing pigs at low prices.

To date, the cumulative planned procurement and storage for the year stands at 318,000 tonnes. Although the final transaction results were less than ideal, with hog prices on a steady upward trend, the government has continued to implement its procurement-and-storage program, bolstering market confidence and increasing resistance to low‑price purchasing by slaughterhouses. Nevertheless, amid weak consumer demand and ample live‑pig supply, upward pressure on hog prices remains constrained.

　　A review of the procurement and storage information from March 2022 to the present.

　　Procurement and storage information from March 2022 to the present.

　　On March 3, 2022, the first batch’s first round of procurement totaled 19,400 tons, and on March 4, the first batch’s second round of procurement amounted to 20,600 tons.

　　On March 10, 2022, the second batch of state reserves totaled 38,000 tons.

　　On April 2, 2022, the first round of the third batch of state procurement amounted to 11,800 tons, and on April 3, the second round totaled 28,200 tons.

　　On April 14, 2022, the fourth batch of state reserves was procured, totaling 40,000 tons.

　　On April 22, 2022, the fifth batch of state reserves was collected, totaling 40,000 tons.

　　On April 29, 2022, the sixth batch of state reserves was procured, totaling 40,000 tons.

　　On May 13, 2022, the seventh batch of state reserves was procured, totaling 40,000 tons.

　　On May 20, 2022, the eighth batch of state reserves was procured, totaling 40,000 tons.

　　To date, eight batches totaling ten rounds of procurement and storage have been completed, with a cumulative total of 318,000 tonnes acquired through public auction.

　　Actual auction failure situation

　　In the first round of 2022 pork procurement and storage, there were no unsold lots and no additional purchases; however, in the second round, 38,000 tons of pork were tendered, with 16,000 tons going unawarded.

　　On April 2, 2022, the first round of the third batch of state procurement recorded no unsold lots; on April 3, the second round of procurement resulted in 19,700 tons going unsold.

　　On April 14, 2022, the fourth batch of state‑owned grain reserves failed to sell, with 37,300 tonnes remaining unsold.

　　On April 22, 2022, the fifth batch of state reserves failed to sell at auction.

　　On April 29, 2022, 38,200 tons went unsold.

　　On May 13, 2022, 25,500 tons went unsold.

　　On May 20, 2022, 29,700 tons went unsold.

　　To date, the cumulative planned procurement and storage for the year stands at 318,000 tonnes. Although the final transaction results were less than ideal, with hog prices on a steady upward trend, the government has continued to implement its procurement-and-storage program, bolstering market confidence and increasing resistance to low‑price purchasing by slaughterhouses. Nevertheless, amid weak consumer demand and ample live‑pig supply, upward pressure on hog prices remains constrained.

　　Industry insiders attribute the recent rise in pork prices to a growing trend of secondary fattening, government pork stockpiling, and sharp fluctuations in the piglet market. However, as prices climb, sentiment among producers has begun to waver. On the one hand, consumer demand has failed to keep pace: catering demand remains sluggish, and household purchasing intentions are weak, exacerbating the buildup of unsold carcasses and intensifying downward pressure on slaughterhouse prices. On the other hand, culling pressures vary significantly across producers—high‑priced pigs are increasingly difficult to sell, while downstream buyers show little appetite, leading to a surge in price cuts for premium‑priced hogs. Meanwhile, slaughterhouses continue to face substantial challenges in securing lower‑priced supplies.

　　April customs data show that imports fell 67% year on year.

　　According to import data from the General Administration of Customs, China imported 140,000 tonnes of pork in April 2022, a year-on-year decrease of 67.6%; cumulative imports from January to April totaled 560,000 tonnes.

　　Commentary: Domestic hog production capacity continues to expand, reducing the need for pork imports. Meanwhile, market demand for pork remains subdued. In April, total retail sales of consumer goods amounted to RMB 2.9483 trillion, down 11.1% year on year; catering revenue fell 22.7% year on year, and room revenue in accommodation establishments above the designated size declined by more than 30%.

　　Over the past 15 years, imported frozen pork has accounted for roughly 2% to 5% of China’s domestic pork supply. This year, pork imports are expected to remain below 2 million tonnes.