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Pork prices have fallen for seven weeks in a row as pig production has resumed and production has increased.
, however, large pig farming enterprises continue to expand production capacity.
said that only by building comprehensive competitiveness can we still show value when pig prices are relatively low.
believe that the cost of large-scale aquaculture enterprises there is room for decline, is expected to reduce the impact of falling pig prices on performance.
pork wholesale price hit a four-month low after a multi-wheeled roller coaster market, domestic pork wholesale prices recently hit a four-month low.
as of 1400 hours on October 22nd, the average price of pork in the national wholesale market for agricultural products was 40.97 yuan per kilogram.
fall in pork prices was due to an increase in the supply of pigs.
Ministry of Agriculture and Rural Affairs said on October 21st that since March this year, pig production has increased for seven consecutive months month-on-month, indicating that new production capacity in the previous period is being released, capacity is becoming production, while imported pork is also increasing.
prices, pork prices have fallen for seven weeks in a row since September.
Ministry of Agriculture and Rural Affairs predicts that during the Spring Festival on New Year's Day next year, the supply of pork will increase by about 30% YoY, and prices will generally be lower than the same period last year, and there will be no sharp price increases.
head enterprises continue to expand production despite the decline in pork prices, but the pace of expansion of pig farming enterprises has not stopped.
Muyuan shares recently announced that it intends to fund the establishment of Hengxian Muyuan, Shayang Muyuan, Jiangdu Muyuan, Yi'an Muyuan 4 pig breeding subsidiaries and 1 feed subsidiary of Mahara Science and Technology, by the subsidiary Ofahara Grain and Trade funded the establishment of raw materials Sun company Pastoral Life.
the registered capital of each of the six new companies is proposed at 20 million yuan.
Makhara shares in an investor survey, said that the company has set up a slaughter subsidiary planning capacity of about 30 million head.
will give priority to the layout of slaughterhouses in areas with more intensive aquaculture capacity, depending on the layout of future aquaculture capacity.
the end of September, the company's pig storage volume of about 18 million head, of which can breed sow storage volume of 2.216 million head.
2020, five pig farming enterprises have invested nearly 20 billion yuan in expansion plans.
, Makhara plans to invest 5.1 billion yuan in 23 pig breeding projects and 1.9 billion yuan in four pig slaughter projects.
new hope to invest 1.826 billion yuan in the construction of three new pig breeding projects.
into October, Wen's shares and Dabei Nong joined the ranks of large investments.
to issue convertible corporate bonds to raise no more than 9,875 million yuan.
, 6,252 million yuan was spent on pig farming projects.
dabei farmers to launch an industry launch fund with a total size of 10 billion yuan, the first phase of 1 billion yuan to support pig farming projects in Hebei.
Zhengbang Technology announced plans to expand production as early as June.
company intends to raise no more than 8 billion yuan, of which 3,219 million yuan will be used to develop pig farming business.
Zhengbang Technology said in its 2019 annual report that pig farming continues to focus on expanding its scale, with a target of 9 million to 11 million pigs this year.
production capacity to reduce costs, to suppress the "pig cycle" Huaxi Securities Research Report shows that China's "pig cycle" is about 3-4 years.
the current pig cycle, which began in June 2018 and is currently 28 months long, is an "up-period" and is expected to enter a "down-period" in the fourth quarter of 2020.
the Spring Festival, pork will show "supply and demand, supply volume", from the Spring Festival to the middle of next year, the number of columns will be increased across the board, supply increased significantly.
demand for pork will enter the off-season after the holiday season, and pig prices are expected to fall significantly.
Caixin Securities pointed out that Mayuan shares are "self-cultivation integration" breeding leading enterprises, cost control capacity is outstanding.
, the company's pig fattening cost is about 14 yuan / kg, piglets cost about 350-400 yuan / head.
, with the increase in pig production, the decline in the cost of prevention and control of swine fever in Africa and the use of intelligent farming technology, there is room for decline in breeding costs.
company is expected to rely on cost control capabilities to reduce the impact of falling pig prices on performance.
industry insiders said that as leading enterprises continue to expand production capacity, large or super-large pig farming enterprises to obtain a certain market share, will inhibit market price volatility, market information more transparent, conducive to avoid the "pig cycle" caused by the rapid and unreasonable rise or fall in pig prices.
, the top 10 pig companies are now listed in less than 10% of the country's total column volume.
Liu Yong good talk about pig prices, falling back is not a bad thing October 22, 2020 Tianfu Forum New Hope Group Chairman Liu Yong good said, Africa swine fever and the new crown outbreak of the dual impact, so that China's pig production has declined.
In this pattern, enterprises invested a lot in the pig industry, the state has also given policy encouragement and support, now the supply of pigs is gradually restored, more pigs, pork prices gradually decline, which is good for the common people.
" for pig-breeding enterprises, to correctly look at cyclical fluctuations, to stand in the longer-term perspective to consider the problem.
only to build comprehensive competitiveness, even when pork prices are relatively low, can still show value, this is what enterprises should do.
" Liu Yong good said that he is very confident in China's pig industry, specifically to the new hope, the company has done a lot of layout, it believes that the company has enough competitiveness to meet the changes in the pig cycle.