Huatai Securities: Post-holiday pork prices drop more than expected, reinforcing the logic of capacity reduction.

Huatai Securities research report pointed out that after the Spring Festival, pork prices continued to fall, and as of March 2, the national average price of live pigs had dropped to 10.56 yuan/kg, hitting a new low since 2022. The report believes that under the background of pork prices falling more than expected, industry losses are increasing, and the disposal of sows is expected to accelerate, thereby strengthening the logic of capacity reduction in the pig breeding sector. It reiterates its key recommendation of the pig breeding sector.