Increment is easy to increase income, it is difficult to "guarantee the bottom line" or become a pig enterprise 20...

Production expansion is the first keyword for pig companies in 2021

Incremental easy to increase income difficult

According to the live pig sales briefing in December 2021, 12 listed pig companies will sell a total of 108 million live pigs in 2021.

In 2021, almost all major pig companies are busy expanding production

Compared with the sharp increase in sales, the income of pig companies has not increased significantly

Reasonable planning of production capacity may become the primary consideration for pig companies in 2022

Entering a "cooling-off period" after expanding production

After pig enterprises experienced rapid production expansion, the breeding side may have encountered difficulties and had to enter a "cooling-off period", and "quantity is priceless", causing pig enterprises to face losses

In the case of a sharp drop in the price of live pigs, the cost issue has brought the breeding side into a "cooling-off period"

Affected by the low price of live pigs, the business model of high investment and low return may also make pig companies have to plan their production capacity reasonably

"For New Hope, the two major industries of pig raising and white feather poultry will maintain their existing production capacity in 2022, improve their internal skills, improve production efficiency, and reduce production costs, and will not make too much investment in new production capacity

"Securing the bottom line" may become the top priority

After the high-speed expansion period, the focus of competition among pig enterprises may change from "quantity competition" to "guarantee the bottom line", and seek reasonable development space in the downward stage of the pig cycle

The relevant person in charge of New Hope said frankly that in 2021, the live pig industry has experienced a sharp decline from the top of the cycle to the bottom of the cycle, and the price of live pigs has plummeted from more than 35 yuan/kg at the beginning of the year to about 12 yuan/kg in the second quarter

"In terms of output, especially the number of pigs to be slaughtered, there will be a large increase

The relevant person in charge of Muyuan Co.

"If companies want to turn losses into profits or expand their profit margins, they will generally choose to reduce costs and increase efficiency

The task of reducing costs is long and arduous