Nanfang Daily, Nanfang Plus:

At present, hog raising can help farmers turn a profit, but dairy and beef cattle breeding is still in the red. How will livestock production and supply change in the second half of the year? What measures will be taken to stabilize the development of animal husbandry? Thank you.

Han Jun:

Mr. Wang will answer your questions.

Wang Lejun:

Thank you for your questions. The production of meat, eggs and milk has increased since the beginning of this year. As Mr. Han just mentioned, the supplies of meat, eggs and milk are generally abundant. In H1, the output of pigs, cattle, sheep and poultry increased by 0.6%, egg production up 2.7% and milk yields grew 3.4% year on year. The market supply of livestock products was sufficient, with prices staying low. Take hog production as an example. Under the combined effect of market adjustments and production capacity regulation, hog production capacity has dropped from a high level and hog prices have taken the lead to rise, making hog breeding a profitable industry again. Our statistics show that hog farmers recently can earn 400 yuan after selling a single pig. Prices for dairy and beef cattle still has fallen sharply. In H1, beef and fresh milk prices fell 12.1% and 12.5% year on year, respectively. Beef and dairy cattle farming is suffering losses.

With regard to future development trends in H2, hog production is expected to maintain good momentum and perform well both in production and sales. I would like to share some statistics with you. In June, the number of breeding sow stocks reached 40.38 million. This is equivalent to 103.5% of the normal population of 39 million and within the green and reasonable range of production capacity regulation. At the end of June, the stocks of medium-sized and big pigs fell 6.4% year on year. However, as hog prices are rising, farmers may be reluctant to sell pigs now and may continue to feed big pigs to make them heavier and more valuable, therefore, the market supply is generally sufficient . Due to inertial growth of supply, prices for dairy and beef cattle will remain low in the short term, making cattle-raising business more difficult. Next, we will continue to strengthen our efforts to implement more effective measures.

Looking forward, the ministry will focus on the following five aspects to stabilize livestock production.

First, we will better regulate production capacity. Recently, hog production has stayed in a green and reasonable range. We will continue to keep 39 million breeding sow stocks as a "main switch" of regulation, do a good job in regulating production capacity and implementing policy and other supporting measures, striving to guarantee production capacity within a reasonable range.

Second, we will enhance early warnings and guidance. We will closely monitor the quantity changes of breeding sows, newborn piglets as well as medium and large pigs. Through this effort, we aim to guide pig farms and farmers to sell hogs at the right time to secure profits, avoiding price spikes or drops due to overstocking or sudden sales, particularly to prevent a significant drop in prices after the Spring Festival consumption peak next year. For beef and dairy cattle, we will guide farms and farmers to refine their herd structures and appropriately eliminate older and less productive cattle, thereby better matching production with market demand.

Third, we will focus on helping overcome difficulties. We will guide major milk-producing provinces in effectively implementing relief measures such as increased subsidies for raw milk purchases and spray drying of raw milk into milk powder, promoting cost-effective and efficient farming models. We will organize and implement policies aimed at expanding and improving basic breeding cattle, converting grain to fodder and promoting whole-county dairy production capacity. Additionally, we will guide local governments to increase credit and insurance support for farms and farmers to prevent excessive culling of breeding cows.

Fourth, we will prevent major animal epidemics. We will implement and improve regular epidemic prevention measures and continuously strengthen the prevention and control of major animal epidemics, such as African swine fever, highly pathogenic avian influenza and foot-and-mouth disease, as well as post-flood epidemic prevention. Preparations for autumn animal epidemic prevention will be made in advance to ensure no regional major animal epidemics occur.

Fifth, we will upgrade the industry. We will vigorously render the industry more modernized, organized and industrialized, aiming to extend its industrial chain and increase the added value of products. We will advance integrated development of farming and processing as well as encourage enterprises to improve the mechanism of helping farmers increase income through order-based production and signing purchase and sale contracts, thus ensuring farmers benefit more. We will continue to implement the soybean meal reduction and substitution initiative and advance the resourceful use of livestock and poultry waste, so as to promote green development in animal husbandry. Thank you.