Large pig farmers are strong to increase slaughter capacity but slaughter companies are still sitting...

In terms of production capacity, Shuanghui Development’s “biggest” position in the slaughter industry may be threatened

Pig companies aggressively enter the slaughter industry

In the latest investor survey activity, Muyuan said that the company currently has two slaughter plants in Neixiang and Zhengyang in operation, with a combined production capacity of 4 million heads/year

Muyuan is not the only pig company that has increased its slaughter capacity

It is worth noting that the current market concentration of China's slaughter industry is not high

For pig companies, the purpose of increasing the slaughter business is to digest excess capacity

Life is not easy for slaughter companies

The entry of pig companies into the slaughter industry may make the already difficult slaughter companies "exacerbate the situation

At present, the performance of leading companies in the slaughtering industry, such as Longda Meat and Golden Ham, is declining

At present, the overall slaughter industry is still at a loss

“The factors that have a greater impact on the profits of slaughter companies are the rate of fresh meat sales and the segmentation structure.

For pig companies, increasing the slaughter business has certain risks

Pig companies and butcher companies may "love and kill each other" in the future

From the perspective of industry insiders, it is profitable for current pig raising companies to increase their slaughtering business

"Not only we are developing slaughter business, but slaughter companies are also engaged in breeding.

"In terms of pig slaughter business, relevant policies are gradually being guided to reduce cross-regional pig transfers and form an internal balance of pig supply and demand in a certain area.

The transition from "adjusting pigs" to "adjusting meat" will further promote "aquaculture-slaughter integration"

"From the perspective of industry concentration, the integration of breeding and slaughter can become the main direction of the future development of the pig breeding industry