Pig industry strange image: pig profits increased 18 times kill pig gross profit fell 80%

Affected by African swine fever, last year began to soar domestic pig prices, related large listed pig companies have also been sought after by market funds, the stock price all the way upAlthough in the first half of this year, by imported pork, the new crown epidemic and many other factors, pig prices experienced a short-term decline, but the larger supply gap, so that pig prices soon ushered in a rebound, high trend does not changeAccording to The Monitoring of ZhuoTron Information, as of June 29, the average price of three yuan of pig in the first half of 2020 was 34.74 yuan/kg, up 20.43 yuan/kg yoY, up 142.76 percenthowever, under the good market, around the pig industry chain of enterprises, the day has lived a two-day ice and fire scene: upstream pig breeding enterprises to earn a full pot, downstream slaughtering plant gross profit has dropped significantlyFang Huiling, an agricultural product analyst atEast Securities Futures, said that in the first half of this year, the profit from breeding was considerable, with the average pig breeding profit being more than 1000 yuanThe lack of piglets led to higher breeding costs, making self-breeding than the purchase of piglet model profits are higher than 800-1000 yuan / head range, the overall supplement of farmers is more active"However, the overall profitability of the slaughterhouse in the first half of the year was poor, with most of them in a loss-making state, with some companies that hoarded more frozen meat at low prices last year to make up for the losses by selling frozen meat at high prices." Fang Huiling said the main reason for the loss was a sharp drop in slaughter volume, and it was even difficult to cover fixed inputsIn addition, the breeding end of the strong price capacity, downstream consumption is weak, the ability to raise prices is weak, but also led to the slaughter business difficultiesThe first half of 2020, the profit value of self-breeding pigs was 2311.36 yuan per head, up 1896.36 percent year-on-year, according to theThe average gross profit of downstream pig slaughtering enterprises was only RMB14.00/head, a decrease of 78.22% YoYMany of these areas also appear edire gross margin situation, fresh slaughter losses are serious, some manufacturers said the gross profit loss value reached more than 100 yuanWang Yanan, a senior analyst in the pig industry at, believes that the increase in feed cost price is far less than the increase in pig prices, which is an important reason for the excess profits of self-breeding enterprisesData show that the average annual price of pig feed is 2292.51 yuan / ton, up only 5.65% yoyfor the plight of slaughtering enterprises, some market analysts told Sina Finance, this year, the pig industry has actually entered a period of tight supply and demand, on the one hand, pig price rebound led to some farmers to sell, fat pig supply reduction;Wang Yanan, senior analyst of the pig industry at Zhuotron Information, also believes that the slaughter volume is small, but the cost of labor, epidemic prevention and other high, resulting in an increase in the cost of the average labor costs, slaughterhouse profits are the main factor in addition, Wang Yanan also said that the price of fat white meat is low, fat thin white meat price difference is large; in fact, since last year, the pig slaughter ingress market has undergone a wave of supply-side reforms According to the Ministry of Agriculture, more than 4,000 slaughters were eliminated in 2019, down more than 47% year-on-year, including one of the industry's biggest names last November, the Ministry of Agriculture and Rural Affairs also issued a notice, requiring strict approval of fixed-point slaughterhouses;