Core Viewpoint - The Chinese government is implementing measures to prevent "involution" in the pig farming industry, focusing on capacity control, weight reduction, and limiting secondary fattening to promote high-quality development in the sector [1][5]. Group 1: Policy Measures - The Ministry of Agriculture and Rural Affairs has proposed a framework to reduce the national breeding sow population by 1 million to 39.5 million, slightly above the basic capacity [2]. - Policies include optimizing pig production, increasing the elimination of weak piglets, and lowering the weight requirement for state reserves to 115 kg [2]. - The Ministry will enhance monitoring and require local authorities to report on breeding sows, inventory, average weight, and secondary fattening monthly [2][3]. Group 2: Industry Trends - The pig farming industry is experiencing a shift towards increased concentration, with the scale of pig farming rising from 53% in 2021 to 69% in 2024 [5]. - The top ten listed pig farming companies accounted for 23.7% of the slaughter volume in the first half of 2025, indicating a further increase in industry concentration [5]. - Major companies like Muyuan and Wen's have reduced their breeding sow inventory, with Muyuan's inventory decreasing by 54,000 heads to 3.43 million [5]. Group 3: Weight Reduction - The average slaughter weight of pigs in June was 90.3 kg, down 0.58% month-on-month and 2.11% year-on-year, reflecting a clear trend towards weight reduction [6]. - Major companies reported varying average weights, with Muyuan at 108.64 kg, Wen's at 113.69 kg, and New Hope at 99.21 kg, showing a significant decline in average weights across the industry [6]. Group 4: Secondary Fattening Practices - The practice of secondary fattening, where farmers purchase pigs at normal slaughter weight and further fatten them, has become common post-African swine fever, disrupting price stability [7]. - Environmental policies are expected to promote the upgrade or elimination of outdated production capacities, which will help stabilize the industry and curb secondary fattening practices [7].