New Delhi, March 28 (IANS) Rising grain and input costs due to the Iran war are lifting animal feed prices in China, putting pressure on hog producers already suffering from weak demand and pork prices at 16‑year lows, a new report has said.
In March, spot soymeal prices rose 7 per cent or over 200 yuan per tonne and corn by 4 per cent or around 100 yuan per tonne, according to reports.
China is the world’s biggest pig market and producers are dependent on two key feed ingredients namely, soymeal and corn.
Futures for soymeal and corn on the Dalian exchange rose to multi‑month highs since the conflict began on February 28, partly due to higher oil prices, freight rates and rising fertiliser costs, a Reuters report cited analysts as saying.
An analyst said that other hog feed inputs, including lysine, methionine, fishmeal and vitamins A and E, have surged between 6 per cent and 77 per cent this month.
Chinese hog producers, who account for half of the world’s pigs, have been facing falling pork prices due to overcapacity and falling demand.
Cash prices tumbled to 9.69 yuan per kg – the lowest in 16 years, the report cited JCI.
Raising a hog that weighs about 60-62.5 kg currently costs 12.2-12.5 yuan per kg, which leads to a farmer incurring a loss of 280-350 yuan for each pig they sell, according to an analyst.
Smaller farmers, representing less than 30 per cent of China’s pig market, face prospects of going out of business being increasingly vulnerable to price swings because of their small scale.
The report mentioned about a 600-head pig farmer in northern Hebei province losing money for a year now, even before feed costs jumped sharply in March.
“Since 2025, Chinese authorities have intensified efforts to rein in overcapacity, urging breeders to cut sow numbers and manage slaughter rates, while recently buying frozen pork for state reserves to stabilise prices,” the report said.
—IANS
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