Pork prices have plummeted!

 　　Recently, the feed industry has ushered in a wave of "price increases"
.
Feed companies such as New Hope, Zhengbang Technology, Tongwei Co.
, Ltd.
, Zhengda Group, Dabeinong and other feed companies have successively issued price increase notices.
The price per ton will increase between 50 yuan and 100 yuan, involving concentrated feed, suckling pig feed, chicken feed, and fish feed.
And other feed product lines
.
What is the impact of feed companies' price increases on the aquaculture industry?JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Hefei, Anhui: The increase in the number of pigs in the stock consumes more feedJuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　A farmer in Hefei, Anhui Province, has the right to study.
He has been engaged in pig farming for 21 years.
He is a well-known local pig farmer.
Lao Zhuang said that last year was a year of high profits for pig farming.
Many small and medium-sized farmers will compete this year , Which has caused the current inventory to increase rapidly
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Relevant data also shows that the number of reproductive sows in China is picking up rapidly, from 19.
13 million at the end of September 2019 to 45.
64 million at the end of June this year, an increase of 2.
3 times
.
The large increase in fertile sows means that the supply of live pigs is also increasing, which has caused the price of live pigs to fall sharply
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Hefei City, Anhui Province, the pig farming households’ educational rights: From the sow inventory to the production volume, it has expanded by two-fifths.
My normal inventory exceeded 3,000 in previous years, and this year’s normal inventory exceeded 5,000
.
In general, they tend to hold down a bit more and want to wait for the price to return.
It is possible that the more you wait, the more you lose, and the bigger your pigs are, the more you lose
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Lao Zhuang told reporters that in previous years, a pig needs 700 kilograms of feed for slaughter, but this year only a lot more
.
Right now he has 2,000 pigs when they are ready for slaughter.
Now he is selling pigs at a loss and can only continue to raise them.
He needs to consume more feed every day.
In the past, he would feed in feed once a week, but since April this year, he has to feed it twice a week
.
Lao Zhuang always carried a ledger with him
.
The ledger clearly recorded the purchase price of each feed over the past three years.
Lao Zhuang opened the ledger and gave the reporter a calculation .
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Live pig farming households in Hefei, Anhui Province: On February 12, 2019, corn will be 2020 yuan per ton; in April 2020, 2,100 yuan a ton; the real price increase will start in June 2020; yesterday it pulled back over 2900 yuan Each ton should be a difference of 500 yuan a ton from the same period last year
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Not only the price of corn remains high, the price of soybean meal has recently hit a historical high, and the price of farmers’ purchases has exceeded 4000 yuan per ton.
In addition, at the end of August, various feed factories have raised prices, and mixed pig feed has increased by 100 per ton.
Yuan
.
Many farmers said that the current purchase price of live pigs has fallen below the cost line
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Chen Shijian, a pig farmer in Dingyuan County, Anhui Province: Now, 30 catties of piglets are only more than 300 yuan.
The cost of raising 30 catties of piglets should be 600 yuan, which is nearly half the difference
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Live pig farming households in Hefei, Anhui Province: The price of fat pigs today is 6.
1 yuan and 6.
2 yuan per catty.
Our breeding cost is at least 8.
5 yuan per catty.
We sell a catty of pigs and lose at least 2 yuan per catty.
A pig costs 200 catties.
It will lose 400 yuan, and a pig will lose 500 yuan if it costs 200 kilograms
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　High raw material prices, feed companies increase income but not profitsJuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The rapid recovery of live pig stocks also means a substantial increase in feed consumption, which has brought good market sales to feed processing companies.
So why do feed manufacturers increase their prices?JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In the finished product warehouse of the Dabeinong feed production base in Hefei, Anhui Province, the warehouse clerk is busy with the verification work before the feed is released.
She told the reporter that the current feed out of the warehouse has accelerated a lot, and the finished feed is basically a week.
Will turn around once
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　According to the person in charge, corn accounts for about 60% of the cost of feed and soybean meal accounts for 20%
.
The spot price of corn has risen by 400 yuan per ton, and the price of soybean meal has approached the range of 4,000 yuan per ton, which is more than 800 yuan higher than the same period last year.
Although their shipments have increased by 30% this year, they are helpless due to the continuous high level of raw materials.
Therefore, it can only increase the selling price of feed to alleviate cost pressure
.
A number of feed companies have successively issued product price increases announcements, and feed products generally increase prices by 50-100 yuan
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In fact, the feed industry has experienced multiple rounds of price adjustments this year, but related companies have increased their revenues but have not increased their profits
.
Judging from the 2021 mid-year report, the feed industry's operating income in the first half of the year has generally increased.
The operating income of the feed business of Haida Group, New Hope and Dabeinong was 33.
85 billion yuan, 32.
83 billion yuan, and 11.
21 billion yuan, respectively.
That's 40%
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Affected by the high price of raw materials and other factors, the gross profit margin of most listed companies in the feed sector has declined.
The top three feed companies by market value have operating gross profit margins of 10.
30% for Haida Group, 6.
92% for New Hope and 13.
58 for Dabeinong.
%, a decrease of 1.
52%, 0.
95% and 5.
25% respectively from the same period last year
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The reporter learned during the interview that the feed mill has reduced the raw material inventory of corn and soybean meal.
The current corn inventory is only 2,000 tons, which is only one-third of the same period last year.
The soybean meal inventory has also fallen below 1,000 tons.
Enough production demand for ten days in the factory
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Zhu Zhongliang, Purchasing Manager of Dabeinong Anhui District: Now we are maintaining low inventory operation, because now the new corn is on the market, the entire price is in a downward phase.
At present, it is estimated that it will fall by about 100 yuan per ton, so in order to ensure that the company For profit, we are keeping low inventory operation
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The listing of new corn will ease supply pressure.
Insiders: corn prices will remain highJuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Downstream demand continues to increase, and feed manufacturers work overtime to produce, to a large extent the demand for corn raw materials
.
Entering October, the major corn producing areas in China have begun to harvest one after another.
What is the output of this year's corn? What impact will the new corn have on the market after it is launched?JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In Nanzhangfeng Village, Xushui District, Baoding City, Hebei Province, contiguous pieces of corn are being harvested.
A local grower, Lu Hu, told reporters that the 1,000 acres of corn he planted this year is growing well, and the purchase price of new corn is better than last year
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Lu Hu, a grower in Xushui District, Baoding City, Hebei Province: Last year it was four cents per catty of wet corn with cob, and this year it was five cents per catty of wet corn with cob
.
Now people are rushing to grow autumn and winter wheat and are very anxious
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The reporter learned that more than 420,000 acres of corn were planted in Xushui District this year.
Although there is little change from last year, the corn output this year is better than last year
.
Growers told reporters that one catty of wet corn with a core can produce 4 taels of dry corn after drying, threshing and other processes.
This year, the local yield per mu is about 1,000 catties of dry corn
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　860,000 mu of corn in Guzhen County, Bengbu City, Anhui Province has also been harvested.
Although some areas were affected by floods, many farmers adopted dense planting this year.
No production cuts in the season
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Relevant data show that in 2021-2022, China’s corn planting area will be 640 million mu, an increase of 21.
09 million mu or 3.
4% over the previous year
.
In October, China's new corn will be harvested in large quantities.
In major corn producing areas such as Henan, Shandong, Anhui, and Hebei, the average price of new season corn will be between 1.
15 yuan and 1.
20 yuan per catty
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry

　　After the new corn is listed, it will ease the pressure on the demand side, but in the long run, there is still a supply gap
.
The Ministry of Agriculture and Rural Affairs of China predicted in August that the total demand for corn this year will be about 293 million tons, and the total output plus imports will be about 291 million tons
.
The total corn supply and demand gap is about 2 million tons .
According to industry insiders, corn prices will still fluctuate at a high level in the second half of the year, superimposing downstream industries with large-scale losses, and feed companies' profits may continue to be under pressure
.
JuG China Feed Industry Information Network-Based on feed, serving animal husbandry