Materials are rising, why is the price of pigs falling?

At present, there are three reasons for the continuous decline in pig prices.

First of all, pork consumption continues to be weak. Due to the hot weather, pork is still in the off-season, and people's desire to buy pork is not great, especially after the holiday, pork consumption is getting worse and worse, which leads to obvious unsalable pork in the market. However, with the recent plunge in pig prices, the wholesale of white strips has continued to fall, and the enthusiasm of traders for purchasing and stocking has dropped sharply. Slaughterhouse enterprises have to take the pig price as the starting point and control the price to reduce the risk.

The second is the release of production capacity and the emergence of selling. With the continuous recovery of pig production capacity, the production capacity expanded in the early stage is also released, and the drop in pig prices is normal. However, with the emergence of the plunge in pig prices after May Day, the pressure on farmers has doubled. In order to avoid risks, not only cattle and pigs have become a common practice, but also market standard pigs have been forced to join the selling team. For a time, the market was flooded with fat pigs, and pig farmers lined up to sell pigs, which aggravated the overall decline in pig prices.

Third, the large increase in imported pork is also a key factor in the decline in pig prices. Although the price of pork has dropped a lot, the quantity of meat imports is still increasing.