Part 3/11:
Overproduction and Demand Collapse
The collapse in pork prices is primarily due to overproduction—initially triggered by government-driven efforts after the African swine fever wiped out half of China’s pig population in 2019 and 2020. In response, Beijing flooded the market with subsidies, cheap loans, and massive investments in industrial-scale pig farms equipped with cutting-edge technology.
However, this intervention led to a record oversupply—turning what was once a shortage into a glut in a remarkably short span. Currently, these colossal farms are burdened with debt, unable to halt production despite falling prices. To avoid bankruptcy, producers are dumping pigs at any cost just to repay loans and preserve liquidity.