Rising Feed Costs in China Amid Iran Conflict Push Hog Producers into Losses
Escalating Feed Prices Hit Hog Farmers
New Delhi, March 28 – Escalating grain and input prices triggered by the Iran war are driving up animal feed costs in China, intensifying pressure on hog producers already grappling with weak pork demand and 16-year-low prices, according to a recent report.In March, spot soymeal prices surged by 7% (over 200 yuan per tonne), while corn climbed 4% (around 100 yuan per tonne), reflecting the impact on key livestock feed ingredients.
China’s Dependence on Soymeal and Corn
China, the world’s largest pig market, depends heavily on soymeal and corn for hog feed. Futures for both commodities on the Dalian Exchange hit multi-month highs since the February 28 conflict, fueled by rising oil prices, higher freight rates, and escalating fertilizer costs, analysts told Reuters.Other essential hog feed inputs—including lysine, methionine, fishmeal, and vitamins A and E—also jumped between 6% and 77% this month.
Pork Prices at 16-Year Lows
Chinese hog farmers, who produce roughly half of the world’s pigs, are struggling with falling pork prices due to overcapacity and declining consumer demand. Cash pork prices dropped to 9.69 yuan per kg, the lowest in 16 years, according to JCI.The cost of raising a hog weighing 60–62.5 kg now ranges from 12.2 to 12.5 yuan per kg, leaving farmers with losses of 280–350 yuan per pig sold, analysts said.
Small Farmers Most Vulnerable
Smaller pig farmers, who control less than 30% of China’s market, face an increased risk of going out of business as price fluctuations hit them hardest. For instance, a 600-head pig farmer in northern Hebei province has reported losses for a year, even before feed prices spiked in March.Government Measures to Stabilize the Market
Since 2025, Chinese authorities have taken steps to curb overcapacity by urging breeders to reduce sow numbers, regulate slaughter rates, and purchase frozen pork for state reserves to stabilize market prices.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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