Tang Renshen: Use downstream meat products to extend the risk of pig price

On September 25, a reporter from the Beijing News learned that Tang Renshen recently revealed on the investor reception day that the profitability of the pig breeding business has declined due to rising costs and falling prices

Tang Renshen said that the reason for the decline in the profitability of the breeding business this year is the fall in the price of live pigs and the rise in the cost of feed ingredients

To cope with the risk of falling pig prices, Tang Renshen stated that it is providing the lowest cost feed through its own feed industry to provide technical support for refined feed for pigs; the meat industry enhances the added value of pigs in the pig industry and broadens the downstream industrial chain , To smooth out the adverse effects of pig price fluctuations on the company’s profits; in terms of breeding, based on the advantages in breeding pig breeding, feed nutrition technology, self-reproduction and self-raising pig mode, epidemic prevention and control system, combined with precision breeding, building pigs, and improving the quality of breeding pigs Measures such as improving breeding efficiency and pig breeding survival rate, and reducing breeding costs

In addition, Tang Renshen broadened financing channels and reduced financing costs through financing tools such as bank loans, equity, and industrial funds

Regarding hog futures, Tang Renshen believes that hog futures are mainly used as hedging services for the hog breeding industry to reduce the risk of hog price fluctuations