-
Categories
-
Pharmaceutical Intermediates
-
Active Pharmaceutical Ingredients
-
Food Additives
- Industrial Coatings
- Agrochemicals
- Dyes and Pigments
- Surfactant
- Flavors and Fragrances
- Chemical Reagents
- Catalyst and Auxiliary
- Natural Products
- Inorganic Chemistry
-
Organic Chemistry
-
Biochemical Engineering
- Analytical Chemistry
-
Cosmetic Ingredient
- Water Treatment Chemical
-
Pharmaceutical Intermediates
Promotion
ECHEMI Mall
Wholesale
Weekly Price
Exhibition
News
-
Trade Service
Judging from the sales report card in May this year, the sales of leading pig companies have been sluggish, sales volume and revenue have both fallen, and sales prices are approaching the cost line.
At the same time, there are still pig companies that have not stopped their pace of capacity expansion
.
In the context of the “continuous fall” of pork prices, the industry is likely to lose money throughout the year.
The volume and price of the head pigs both drop
Today, listed pig companies are facing a decline in sales and revenue
.
According to the May live pig sales briefing, the sales volume and revenue of Muyuan shares and New Hope all declined month-on-month
At the same time, the average price of live pigs sold by listed pig companies is declining
.
According to the sales briefing, the average sales price of its live pigs is around 18 yuan/kg, a decrease of 8%-27%
This directly affects the profitability of pig companies
.
Calculated at a cost of 17 yuan/kg, the profit of New Hope, Muyuan, and Wen’s hog wool has been narrowed to about 1 yuan/kg, and in July 2020, the hog gross profit is still around 20 yuan/kg
It is worth noting that although pig prices are in a downward channel, some pig companies are still accelerating their expansion
.
On June 9th, Aonong Biological issued an announcement stating that it plans to build a self-breeding and self-raising farm with a scale of 5,000 sows and an inventory of 50,000 fattening pigs
Now, does the strategy of "compensation by volume" still work? Judging from the current pig sales data of leading pig companies, the situation of declining pig prices and shrinking profits may be inevitable
.
The head of the relevant department of the National Development and Reform Commission recently stated that as of the end of April this year, the stock of reproductive sows in the country has returned to 97.
6% of the normal year.
The relevant authorities expect that the number of pigs for slaughter in the second half of this year is expected to return to the normal level
.
An industry insider engaged in research on live pig futures told a reporter from China Business Daily that according to the current live pig supply situation and the speed of company expansion, the price of live pigs this year may run at a low level throughout the year, and the industry is likely to lose money
.
Selling a 300 kg fat pig loses about 1,000 yuan
While the price of live pigs has fallen, the cost of feed has increased, which has exacerbated the loss of the industry
.
According to data from the Ministry of Agriculture and Rural Affairs, in early June, the national average pork price was 24.
"Currently, the price of live pigs for slaughter is less than 8 yuan per catty
.
" A farmer from Henan told a reporter from China Business Daily that the pigs in the hands of farmers are now overweight, but because the market price is too low, just sell it.
Affected by the continued decline in live pig prices, breeding profits have been further compressed
.
It is worth noting that the self-breeding and self-raising model may also face profit difficulties.
The price of live pigs continues to fall
.
Chen Xiaoyu, a pig analyst at Shanghai Steel Union-My Agricultural Products Network, told the China Business Daily: "At present, the supply of fat pigs in the market is sufficient, which has lowered the market price of standard-weight pigs
.
In addition, major group companies have a large number of pigs for slaughter.
However, the market demand is limited.
This situation is not materially good for the price of live pigs, and it may be difficult to change the situation of falling live pig prices in the future
.
"
Zhu Zengyong, an associate researcher at the Beijing Institute of Animal Husbandry and Veterinary Medicine, Chinese Academy of Agricultural Sciences, told a reporter from China Business Daily that if the supply of live pigs is surplus in stages, under normal circumstances, the price of live pigs will fluctuate at about 20% of the cost line, and then rebound after a period of time to enter the next cycle.
.
Now that the price of live pigs is still in a downward channel, there will still be seasonal rises and falls.
Farmers should sell slaughter in time to avoid market risks caused by blind slaughter and speculative fattening
.
Whether the industry has entered a cold winter
In the Dragon Boat Festival that just passed, the price of pork did not usher in a "rising every festival
.
" Based on public data from agricultural and rural departments at all levels across the country, on the day of the Dragon Boat Festival, the national average wholesale price of live pigs (three yuan outside) has fallen below 15 yuan/kg, and the price of live pigs in four provinces has entered the "6 yuan per catty era.
" They are 13.
32 yuan/kg in Heilongjiang Province, 13.
95 yuan/kg in Jilin Province, 13.
98 yuan/kg in Yunnan Province, and 13.
99 yuan/kg in Gansu Province
.
In fact, the listed pig companies have already predicted the market downturn
.
Liu Yonghao, chairman of the New Hope Group, said at the Yabuli Forum held recently that pork prices will gradually fall to a relatively normal level, but farmers may suffer losses due to rising feed prices.
This result There will be a process for the occurrence of
.
The relevant person in charge of Muyuan shares also publicly stated that the recovery of live pig production capacity will bring down the price of live pigs.
Although the price may rebound seasonally in the future, the price of live pigs is generally on a downward trend.
It is expected that the live pig industry will reach the bottom in 2022 or 2023.
.
The company needs to improve talent management and capital reserves to prepare for the coming of the winter in the industry
.
Faced with the continued decline in the price of live pigs, the National Development and Reform Commission and many departments have introduced a pork reserve "supporting the market" policy to prevent the price of live pig production from fluctuating and falling
.
The "Improving the Government Pork Reserve Regulation Mechanism and Doing a Good Work Plan for the Pork Market to Guarantee Supply and Stabilize Prices" proposes that when the price of pork is too high, reserves will be put in place to protect residents' consumption needs, push the price down to a reasonable range, and avoid excessive expansion of live pig production capacity; When the price of pork is too low, the purchase and storage will be started to support the market, so as to provide "reassurance" for farmers and avoid excessive elimination of live pig production capacity
.
The above-mentioned industry insiders engaged in the research of pig futures told the China Business Daily that the pig breeding market is greatly affected by capital and profits
.
In August 2020, in the capital market, the pork sector rose by more than 200%
.
Now that the price of pork has fallen, the share price of Lianmuyuan shares has fallen by more than 30%
.
If the live pig reserve is used, the actual difficulties of the live reserve must also be considered.
It is still different from the grain in the links of acquisition, storage, and selling.
The industry is looking forward to the specific implementation
.
