China Sets Records As Farm Prices Slide Lower

Dr. Fred Gale, retired USDA Economist (LinkedIn)

NASHVILLE, TN – China posted record meat and grain production in 2025, but weaker domestic demand pushed farm prices lower and reduced most agricultural imports, according to analysis from Dr. Fred Gale, economist for China agricultural markets. The data point to growing output capacity even as economic conditions limited price support for farmers.

Preliminary government figures show total meat production rose 4.2 percent, topping 100 million metric tons for the first time, led by gains in pork, poultry, and beef. Grain output increased 1.2 percent to 714.9 million metric tons, while cotton production also surged. Soybeans were the major exception in trade flows, with imports rising 6.5 percent to nearly 112 million metric tons, supplying more than 80 percent of domestic needs.

Other imports declined sharply. China cut wheat, corn, cotton, and meat imports, with total agricultural imports down 3.6 percent year over year. Beef imports still accounted for roughly one-quarter of supplies, helping explain recent safeguard tariffs.

Despite strong output, prices weakened. Hog prices fell more than 11 percent for the year, grain prices dropped 2.6 percent, and egg prices declined sharply as production outpaced consumption. Gale notes the price pressure reflects an economy growing more slowly beneath the headline 5 percent GDP figure.

Farm-Level Takeaway: Record Chinese production, coupled with softer prices, signals continued volatility in global grain and protein markets.