"Pig King" Muyuan shares and "Meat King" Shuanghui Development or...

"Pig King" Muyuan shares and "Meat King" Shuanghui Development have joined hands

Two giants hold together

On the evening of January 3, 2022, Muyuan and Shuanghui Development both issued announcements stating that the two parties signed the "Shuanghui Muyuan Strategic Cooperation Framework Agreement" (hereinafter referred to as the cooperation agreement) on January 1, 2022 to start point-to-point direct supply of live pigs and establish supply Chain cooperation mechanism to strengthen cooperation in the purchase and sale of live pigs

According to the cooperation agreement, after the two giants cooperate, Shuanghui Development will open up a green channel to implement 24-hours a day, priority purchase of direct supply of pigs from Muyuan shares; the two parties agree on supply, prices, transportation methods, etc.

Industry insiders believe that the cooperation between the two giants is a win-win situation for each other and a milestone for the industry

"In the long run, Muyuan has feed, breeding, and fattening businesses.

Although this cooperation is not the first cooperation between Muyuan and Shuanghui Development, it is the largest cooperation

Whether a competitor becomes a partner

It is worth noting that before the cooperation between "Pig King" and "Meat King", both parties have already expanded their slaughtering and breeding businesses to each other

After the signing of the cooperation agreement, have "Pig King" and "Meat King" changed from competitors to partners? Both Muyuan and Shuanghui Development stated in the announcement that when the price of live pigs is low, Shuanghui Development can moderately increase the purchase of pigs from Muyuan; when the market price rises, Muyuan can moderately increase the supply of pigs to Shuanghui Development.

Does the cooperation of giants bring a heating effect or aggravate the competitive situation? Affected by the low price of live pigs, losses have become a situation that pig breeding companies cannot get rid of

"The cooperation between industry leaders, under the condition that the systems of both parties are relatively complete, their respective professionalism can indeed be

The integration of breeding and slaughter is the trend

Li Ming told a reporter from China Business Daily: "Many companies in the pig industry chain will develop towards the integration of feed, breeding, slaughtering, and processing.

According to incomplete statistics from a reporter from China Business Daily, four of the top five pig companies in the slaughter volume have entered the slaughter industry, and slaughter production capacity will increase in 2021

A relevant person in charge of a listed pig company told a reporter from China Business Daily that in the pig slaughtering business, relevant policies are encouraging large pig companies to extend downstream, forming a one-stop layout of pig raising and slaughtering

In addition, some companies have established the goal of integration early on

"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