The Cost of Control: Why Pig Farming Became the Surprising Target of Economic Reform

In June 2025, a government campaign against "involution" led to sharp commodity price increases, including rebar (10%), iron ore (15%), and polysilicon (50%), exacerbating weak domestic consumption and fueling deflation. The pig farming industry, targeted for capacity reduction despite stable production, saw profits rise due to efficiency gains, like higher PSY and shorter farming cycles, despite a 20% pork price drop. However, pork consumption has declined since 2014, mirroring stagnating food consumption, with rice intake falling 48% by 2023. This reflects a broader economic slowdown, tied to reduced societal vitality and real estate sector collapse. Government efforts to stabilize prices through production cuts prioritize statistical appearances over public welfare, risking further economic stagnation by interfering with market dynamics, potentially harming healthy industries like pig farming.

0:00 Intro
0:07 The Price Surge Shockwave
1:19 Pig Farming in the Crosshairs
2:56 Unpacking the Pork Paradox
4:40 The Price Plunge Puzzle
7:08 Efficiency Triumphs Amid Policy Pressure
9:30 A Nation’s Waning Appetite
11:20 Beyond Pork: The Food Consumption Crisis
12:16 The Mirage of Dietary Upgrades
13:10 A Tale of Two Economies: South Korea’s Contrast
14:39 The Cost of Statistical Stability

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