Western: In July, the output volume of pig farming enterprises increased. It is recommended to seize the opportunity for in the pig farming sector.

Western has released a report stating that from January to July, the listed pig companies saw a single-digit year-on-year growth in cumulative output, attributed to (1) the high production capacity of these companies in 2025, resulting in a larger number of pigs being sold in 2026, and (2) leading pig enterprises actively controlling their output growth in response to regulatory calls. In July, cumulative revenue from listed pig companies fell year-on-year, while the average selling price increased month-on-month. It is recommended to seize opportunities in the pig farming sector, focusing on companies with strong certainty in output growth and stable operations. The main points from Western are as follows: In July 2026, the output of listed pig companies was 16.131 million heads, a year-on-year increase of 3.79% and a month-on-month increase of 1.54%. Among the leading enterprises, Muyuan Foods Group/Wens Foodstuff Group/New Hope Liuhe sold 666.10/274.21/122.56 million heads of pigs, representing year-on-year changes of +4.82%/-13.36%/-5.90% and month-on-month changes of +6.97%/+6.66%/-2.30%. The reason for the decrease in New Hope Liuhes output year-on-year is a change in the statistical caliber; if using the same caliber, the year-on-year output for July 2026 would show an increase of 30.01%. The increase in Julys output compared to previous months is due to (1) the end of the annual off-season for pork consumption, resulting in a gradual recovery in downstream demand, which led to a slight month-on-month rise in output, and (2) the month-on-month rise in average selling price, which motivated pig enterprises to increase their output. From January to July 2026, cumulative output from listed pig companies amounted to 115.6572 million heads, a year-on-year increase of 5.10%. The single-digit year-on-year growth in output for the period can be attributed to (1) high production capacity at listed pig companies in 2025, leading to a larger number of pigs being sold in 2026, and (2) leading enterprises taking initiative to control output growth. In July 2026, the operating revenue of listed pig companies was 19.184 billion yuan, a year-on-year decrease of 22.14% and a month-on-month increase of 12.67%. Among the leading enterprises, Muyuan Foods Group/Wens Foodstuff Group/New Hope Liuhe recorded sales revenues from pork of 8.897 billion/3.662 billion/1.505 billion yuan, experiencing year-on-year decreases of -23.56%/-24.91%/-16.48% and month-on-month increases of +18.63%/+18.97%/+8.74%. The decrease in sales revenue year-on-year can be attributed to a significant drop in pork prices. The month-on-month increase in sales revenue resulted from a noticeable recovery in average selling prices and an increase in output. From January to July 2026, cumulative revenue from listed pig companies totaled 136.745 billion yuan, a year-on-year decrease of 24.39%. The decline in cumulative revenue year-on-year was due to a significant drop in pork prices and low growth rates in output. In July, the average selling price of live pigs from listed pig companies was 10.88 yuan/kg (arithmetic average), reflecting a month-on-month increase of 13.18% and a year-on-year decrease of 26.00%. Among the leading enterprises, the average selling prices for Muyuan Foods Group/Wens Foodstuff Group/New Hope Liuhe were 10.64/10.80/10.42 yuan/kg, with month-on-month changes of +9.80%/+12.27%/+11.44% and year-on-year changes of -25.59%/-25.93%/-27.84%. The decline in average selling prices year-on-year is due to the abundant production capacity, leading to relatively low prices compared to the same period last year. The increase in average selling prices month-on-month is attributed to (1) the gradual onset of the consumption peak season and a recovery in downstream demand, and (2) leading enterprises actively controlling sales volumes. In July, the average slaughter weight from listed pig companies was 108.40 kg/head, showing a month-on-month decrease of 2.04% and a year-on-year increase of 0.73%. In terms of average slaughter weight, listed pig companies saw a month-on-month decline while experiencing a year-on-year increase. The decrease in average weights is due to leading enterprises intentionally controlling the slaughter weight of fat pigs and some listed companies increasing the proportion of piglet sales, which lowered the overall average slaughter weight. Among leading enterprises, the average slaughter weights for Muyuan Foods Group/Wens Foodstuff Group/New Hope Liuhe were 125.53/123.65/117.85 kg/head, with month-on-month changes of +1.00%/-0.64%/-0.13% and year-on-year changes of -1.98%/+16.99%/+23.00%. Leading pig enterprises actively control the short-term slaughter weight of live pigs; the year-on-year increase in New Hope Liuhes slaughter weight is due to changes in statistical caliber. Risk warning: Risks include slower-than-expected capacity reduction in pig production, unanticipated increases in feed prices, and disease risks.