The pig industry is building up strength to welcome the cyclical recovery, with institutions optimistic about a strong rebound in performance in 2027.

Recently, the Ministry of Agriculture and Rural Affairs has intensively introduced policies to promote the transformation of the pig industry from scale expansion to high-quality development. Institutions predict that 2026 will be a key turning point for the pig industry, with a strong rebound in performance expected in 2027. The industry is preparing for a new upward cycle. In the view of professionals, the bottom of the cycle is often a window of opportunity for layout. Currently, the fundamentals and valuations of the pig farming sector are at historically low levels, with sufficient safety margins. Goldman Sachs previously predicted that effective pig production in the industry will reach a turning point in the second quarter of 2026, with year-on-year contractions of 4% to 7% in the next few quarters. With a decrease in supply, the domestic benchmark price is expected to rise to 15 yuan per kilogram in the second half of 2026, further reaching 15.3 yuan in 2027.