Why did pig farms make money despite falling pork prices? The ability to control costs has become the key to profitability.

During the first half of this year, pig prices continued to fluctuate at a low level. In June, the average price of domestic three-way crossbred pigs in China once fell to 14.3 yuan per kilogram, a year-on-year decrease of over 20% and a decrease of about 13% compared to the price of 16.1 yuan per kilogram in early January. However, the days of listed pig companies seem to be not as difficult as imagined. As of now, 14 pig farming companies have disclosed their performance forecasts for the first half of 2025, with most companies expecting to achieve profitability. Leading companies like Muyuan Shares have even achieved more than ten-fold growth. Why are pig companies making big profits despite falling pig prices? The key to profitability lies in cost control. Several industry insiders interviewed by reporters stated that the pig farming industry is currently promoting "anti-inner cycle", with the core goal of regulating sow capacity and boosting pig prices. In the future, as outdated production capacities gradually exit the market, industry concentration will further increase, and leading companies with cost advantages and technological advantages are expected to gain greater development space.