China’s pork price index fell to a 16-year low in May, reflecting weak consumer spending and a surplus of hogs across the nation. Smallholders like Dalian farmer Sun Haoyu, tending 3,000 pigs, survive on loans as prices tumble, forcing many to the brink of bankruptcy. The slide marks the latest sign that pork, a traditional inflation gauge, is losing its potency and easing inflationary pressure.

After the 2019 African swine fever outbreak drove prices skyward, Beijing boosted production, creating the current glut. Property slump and sluggish construction have cut demand from workers and diners, the two biggest pork‑consuming cohorts in urban areas. Nomura data shows pork prices are down 39 percent significantly over four years, deepening deflation across the economy.

Even state‑backed subsidies have not rescued the sector. Wens Foodstuff Group reported a 43% profit drop and a 38% price fall year‑on‑year, while Dabeinong’s sales rose but margins shrank. Beijing has tapped strategic reserves and urged culling, yet economists warn that without a consumer rebound, pork prices will remain suppressed, tightening margins for both large processors and beleaguered family farms.