The "anti-involution" policy for live hogs has shifted towards practical implementation, and the pace of capacity reduction is expected to accelerate further in June.

Golden Ten Data reported on June 29 that institutions expect the reduction in production capacity in June to continue accelerating. This expectation is mainly based on two aspects: first, the pig breeding sector continues to incur heavy losses. Since May, after a rebound in pig prices, they have reverted to a pattern of sustained, volatile declines. Since June, both self-breeding/self-raising and the raising of externally purchased piglets have experienced losses exceeding 300 yuan per head. Second, regarding piglet prices: according to Steel Union data, the price of a 7-kilogram piglet gradually stopped rising and started to fall at the end of May, and by mid-June had dropped again below 200 yuan, indicating that the sow-to-piglet segment has also entered a state of loss. The market holds significant confidence in the reduction of production capacity and the subsequent improvement in future supply and demand. Besides the economic principle that low prices stimulate demand, there are also policy-related factors. In June, policies aiming to curb "internal competition" in the pig farming sector have moved into the implementation phase, with mandatory targets already issued and the "Four Leadership" initiative put forward. The impact of these policies is expected to gradually become evident in the future.