Core Viewpoint - The Chinese Ministry of Commerce has announced preliminary anti-dumping measures against EU imports of pork and pork by-products, imposing a deposit ranging from 15.6% to 62.4%, which is seen as a protective measure for the domestic pig industry [1][6] Group 1: Market Impact - The EU is the largest exporter of pork to China, with exports expected to account for 47% of its total exports to China in 2024, valued at 4 billion euros [2] - The anti-dumping measures are projected to reduce EU pork exports to China by 30% to 50% by 2025 [2] - The reduction in EU pork supply will create a market space of approximately 8 to 10 billion RMB annually for the domestic pork industry [5][9] Group 2: Domestic Industry Conditions - Domestic pork prices have been declining, with the average price of lean pork dropping below 17 RMB/kg, a year-on-year decrease of over 30% [6] - The influx of low-priced EU pork has severely impacted local profit margins, particularly for by-products like pig ears and feet, which are priced about 60% lower than domestic products [6] - The anti-dumping measures aim to create a fairer trading environment, providing stability for domestic producers and improving price expectations for small and medium-sized farms [6][9] Group 3: Opportunities for Improvement - The market space created by the anti-dumping measures will depend on the domestic industry's ability to enhance competitiveness through quality improvement and efficiency [7] - The industry should focus on standardized and large-scale farming, improving pork quality and production efficiency [7] - Slaughter and processing companies need to enhance cold chain logistics and optimize product structures to meet consumer trends [7] Group 4: Policy Support - The government is implementing various policies to stabilize pig production and market supply, including promoting standardized farming and increasing frozen pork reserves [9] - By 2026, the self-sufficiency rate of pork by-products is expected to rise to 85%, reducing reliance on imports [9] - The anti-dumping measures provide a critical adjustment window for the domestic pig industry, allowing for a shift from quantity expansion to quality enhancement [9]