Slaughter gross margin fell to its lowest average in nearly three years

In recent years, pig prices and meat prices have reached a peak, but pork sales and slaughter margins have reversed, showing a downward trend year by year.
2020 will be a year-round low, with negative gross margins in the north.
and with the slow decline in pork prices and a variety of factors, the market or rebound.
1, the last three years of slaughter gross profit decreased year by year 2018-2019 pig slaughter gross profit showed a year-on-year decline trend.
2018 gross margin was 81.88 yuan/head, and in 2019 it was 42.49 yuan/head, down 48.11% year-on-year.
2018 pig prices in the pig cycle down channel, slaughter enterprises raw material procurement costs are low, the overall gross margin level is the highest in nearly three years.
2019, the overall slaughter gross profit showed a state of shock decline, in addition to the pig price increases associated with the rise in pig prices, pig prices led to higher pork prices, downstream take the enthusiasm gradually reduced.
After pork prices rose to an all-time high in October, slaughter gross margin fell below the 0 yuan line, mainly due to high pig acquisition costs, high pork prices but low actual transaction prices, there is a continuous phenomenon of smashing, the amount of slaughter passively reduced, the average labor cost increased.
2020, when the gross profit from pig slaughter will hover at a low level for most of the year, the lowest level in nearly three years.
, china's slaughter gross margin averaged 14.24 yuan per head as of November 2020, down 66.48 percent year-on-year, according to Trolley Information Monitoring.
2, there is a gap between North and South Maori, the southwest is generally high in zhuoTron information monitoring in the Northeast, North China, East China, Central China, Southwest five regions covered by the provinces, the three eastern provinces, Hebei, Shandong, Henan slaughter gross margin value is relatively low, Sichuan is the highest.
for Sichuan, the local pig prices are high, slaughtering enterprises raw materials acquisition costs pressure is greater.
In the case of large price differences, low-cost pigs and white meat from the province will continue to enter Sichuan, this part of the low-cost pigs and products are used as segmentation, local high-priced pigs are produced for white strips sent to the market.
low-cost products to make up for some of the high-priced supply of goods brought about by the pressure and cost pressure, and to a certain extent to increase the slaughter margin.
for the north, the meat market smashing in the first half of 2020 has been repeated.
the impact of the epidemic, the continued high operation of pork prices is the direct cause and root cause of pork shipments.
the first half of the year, the operating rate of northern slaughter enterprises decreased by 30%-50% compared with the same period in 2019, the local digestion of pork and foreign sales are very limited, and the impact of low-cost frozen meat, fresh gross margin is decreasing.
the cost of artificial hydropower in some large-scale enterprises is higher, the value of head slaughter losses once reached more than 100 yuan.
But from September to October, pig prices fell, pork shipments increased moderately, and the gross profit from slaughter in most areas of the north turned negative, with the gross profit from slaughter in the north at 10.00-25.00 yuan per head as of the end of October.
But in November pig prices rebounded again, meat prices followed the rise, the northern slaughter enterprises terminal goods situation again worse, the Northeast, North China, Shandong area slaughter gross margin again from positive to negative.
with the arrival of the traditional consumption season in December, the speed of pig shipments accelerated, factory orders increased, to mao margin has a certain positive factor to support, gross margin or the whole line rebound.
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