Shennong Group Suspends Longmen Pig Farm Project in Response to Hog Production Capacity Controls

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Shennong Group announced the suspension of the Longmen pig farm project, which was designed to produce 180,000 high-quality piglets annually, in order to implement hog production capacity control targets. The total investment for the project was 120 million yuan, and it was approved by the board of directors in June 2025. The company stated that the suspension is a prudent decision made in consideration of regulatory policies, market conditions, and its own business strategy, and will not adversely affect operations. Shennong Group has seen rapid capacity growth in recent years, with slaughter volumes rising from 652,700 head in 2021 to 3,074,200 head in 2025. However, the average selling price of commercial hogs in the first half of the year was about 9.9 yuan per kilogram, a year-on-year decline of approximately 32 percent, leading to an estimated net loss attributable to shareholders of between 720 million and 880 million yuan. Previously, New Wufeng and ST Longda also terminated some pig farm construction projects. The national sow herd inventory fell to 37.8 million head at the end of the second quarter, just 300,000 head above the normal retention target of 37.5 million head.

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Hunan New Wellful Co Ltd
600975
▼ NegativeRegulationrelevance

Industry-wide hog production capacity controls and sow herd reduction signal regulatory tightening, pressuring sector profitability.