Policy Guidance Drives Unprecedented Hog Production Capacity Reduction, Invesco Agribusiness ETF Enables One-Click Setup of Core Agricultural Holdings

Ask AI · How can policy regulation accelerate the process of reducing hog production capacity?

As of March 23, 2026, 09:54, the Invesco Agriculture, Forestry, and Fishery ETF (560210) has stabilized after a correction. Among its components, Zhongxing Bacteria led the decline, with Rhein Biotech, BioShares, Wanxiang Denuo, and Muyuan Foods also falling.

On the news front, as of around March 20, the nationwide average hog price has dropped to 9.78 yuan/kg, with the average loss per self-bred and raised pig increasing; by the end of December 2025, the nationwide breeding sow inventory was 39.61 million, and the National Development and Reform Commission plans to reduce it to around 36.5 million, a decrease of 7.9%, laying a solid foundation for a new cycle of hog price increases.

Shenwan Hongyuan Research pointed out that the current nationwide price of external three-way crossbred pigs has fallen below the 10 yuan/kg support line; the average loss per self-bred pig has reached 292 yuan, and piglet prices are approaching the cost line (260–280 yuan per pig). The price of culling sows is at a new low since October 2023. Although the breeding sow inventory has increased slightly for two consecutive months, policy regulation has intensified— the National Development and Reform Commission and the Ministry of Agriculture and Rural Affairs have held intensive meetings with pig farming companies, explicitly requiring scientific reduction of breeding sow inventory and annual slaughter volume. Under rising feed costs and passive inventory pressure, cash flow stress will accelerate capacity reduction.

Invesco Agriculture, Forestry, and Fishery ETF (560210) closely tracks the CSI All Share Agriculture, Forestry, and Fishery Index (930910), comprehensively covering core stocks in agriculture, forestry, and fishery, providing investors with a convenient tool for sector allocation. The top ten holdings are Muyuan Foods, Wens Foodstuffs, Haida Group, Zhengbang Technology, Plum Biological, New Hope, BioShares, Dabeinong, Hainan Rubber, and Sanong Development, accounting for a total of 57.46%.

Wind data shows that, according to Shenwan secondary industry classification, the top five industry weights in the CSI All Share Agriculture, Forestry, and Fishery Index are: Breeding (47.41%), Planting (15.52%), Feed (14.86%), Chemical Products (8.02%), and Animal Healthcare (7.03%). (Data source: Wind, as of 2026/3/19)

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