Story perspectives

China's Pork Prices Plunge Amid Economic Deflation

7/15/2025

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Summary

China's Pork Price Plunge

China's pork prices plummeted to ¥14.45/kg in June 2025, down from ¥17.08/kg in 2024.
Overcapacity results from post-swine fever overinvestment, creating a surplus of 5-10 million sows.
The consumer price index decreased by 0.1% year-on-year in Q2 2025, signaling economic deflation.
Leaders are tackling excessive competition and outdated production, echoing 2015 supply-side reforms.
Investors are advised to steer clear of protein stocks due to deflation and policy uncertainty.

Summary

China's Economic Growth

China's GDP increased by 5.2% in Q2 2025, a slight decline from Q1's 5.4%.
Diversification efforts boosted exports, yet consumer spending remains sluggish.
Retail sales grew by only 4.8%, reflecting weak domestic demand despite industrial output rising by 6.8%.
Analysts caution about a possible economic slowdown in H2 2025 due to high tariffs.
Low consumer confidence continues to impact spending and investment decisions.

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China's Pork Price Plunge

China's pork prices plummeted to ¥14.45/kg in June 2025, down from ¥17.08/kg in 2024.
Overcapacity results from post-swine fever overinvestment, creating a surplus of 5-10 million sows.
The consumer price index decreased by 0.1% year-on-year in Q2 2025, signaling economic deflation.
Leaders are tackling excessive competition and outdated production, echoing 2015 supply-side reforms.
Investors are advised to steer clear of protein stocks due to deflation and policy uncertainty.

1 / 2