China Signals Action on Meat Oversupply in Policy Reset
China’s Agricultural Policy Tackles Meat Oversupply Pressures
China has signalled a renewed focus on addressing meat sector oversupply and falling farmgate prices. This is part of its annual “No. 1 document” setting out agricultural policy priorities for the year ahead.
According to Reuters, the policy document prioritises grain security and agri-tech innovation. It also acknowledges mounting pressure on livestock producers caused by excess meat production and weak prices, particularly in pork.
China’s meat industry has struggled with compressed margins, following rapid herd rebuilding after African swine fever. There has also been continued expansion by large-scale producers. The result has been periodic oversupply. This has weighed on producer profitability and prompted calls for tighter supply discipline and improved efficiency.
The government’s policy framework emphasises technological upgrading, productivity gains and risk management, rather than direct production cuts. Moreover, officials have highlighted the role of data-driven farming, genetics, feed efficiency and disease control in stabilising output and supporting long-term sustainability.
Analysts note that while China remains committed to domestic self-sufficiency, the recognition of oversupply pressures suggests policymakers are increasingly aware of the need to balance production growth with market demand. This could influence future decisions on herd expansion, credit availability and support for smaller producers.
Source: Reuters | 3 February 2026
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