The battle between "Pig King" and "Meat King" has begun

Recently, Muyuan shares (002714, SZ) stated that the company’s new slaughtering capacity will be put into production in the next two months, and the group pig industry chain has begun to extend downstream.

In this regard, Wu Linlin, a pig analyst at the Agricultural Products Division of Shanghai Iron and Steel Union, said that last year, "transporting pigs" changed from "transporting meat" to accelerate the deployment of pig companies in the slaughter industry, which is conducive to the integrated operation of supply, production and sales of pig companies, and can also accelerate the slaughter industry.

Big pig companies deploy slaughter businesssj2China Feed Industry Information Network-Based on feed, serving animal husbandry

At present, the two slaughter plants in Neixiang and Zhengyang of Muyuan Co.

With the upgrading of the management and control of live pig transportation, more and more live pig breeding companies have begun to deploy slaughter business

According to the announcement, the top five pig companies except Zhengbang Technology (002157, SZ) have all deployed slaughter business.

However, the slaughter industry is not a “cash cow” project.

Pig companies challenge slaughter companies?sj2China Feed Industry Information Network-Based on feed, serving animal husbandry

As a leader in the slaughtering industry, Shuanghui Development has established 30 meat processing bases and supporting industries in 17 provinces (cities) across the country.

　　Regarding pig companies entering the slaughtering industry, some investors are worried about whether slaughter companies can only collect pigs from small and medium-sized pig companies and retail investors in the future, and the bargaining power of slaughter companies will be reduced

　　First-line distributors in the Henan live pig industry said that the threshold for slaughterhouses is not high.

　　When upstream and downstream companies start to compete in an integrated manner, entering the other's main business is one of the main ways of competition, and slaughter companies will not "stand by

　　Muyuan has a production capacity of 60 million heads, which can fully meet the demand for slaughter, and the cost is the lowest in the industry

　　But for Shuanghui Development, it has nearly 30 years of slaughtering experience, sales channels all over the country, and obvious market advantages

　　In this regard, Wu Linlin, a pig analyst at the Agricultural Products Division of Shanghai Iron and Steel Union, said that last year, "transporting pigs" changed from "transporting meat" to accelerate the deployment of pig companies in the slaughter industry, which is conducive to the integrated operation of supply, production and sales of pig companies, and can also accelerate the slaughter industry.

　　Big pig companies deploy slaughter businesssj2China Feed Industry Information Network-Based on feed, serving animal husbandry

　　At present, the two slaughter plants in Neixiang and Zhengyang of Muyuan Co.

　　With the upgrading of the management and control of live pig transportation, more and more live pig breeding companies have begun to deploy slaughter business

　　According to the announcement, the top five pig companies except Zhengbang Technology (002157, SZ) have all deployed slaughter business.
Wen's (300498, SZ) and New Hope (000876, SZ) pig slaughter business is earlier than Muyuan, and both parties press " "82 ratio" is deployed in advantageous areas for breeding.
Tianbang (002124, SZ) is also accelerating the shift from selling pigs to selling pork and meat products.
Tianbang said that accelerating industrial integration can also stabilize the company when the price of pigs is falling.
Market risk
.
sj2China Feed Industry Information Network-Based on feed, serving animal husbandry

　　However, the slaughter industry is not a “cash cow” project.
It is reported that the slaughter industry has been developing for a long time in China and is becoming mature.
Due to the slow growth of downstream meat consumption demand, the domestic slaughter capacity has been in a state of overcapacity for a long time.
The capacity utilization rate is only around 30%
.
Although the proportion of large-scale breeding has increased in recent years, most domestic pig breeding and pig slaughtering companies have developed independently, so the slaughtering business has not brought much profit to the listed pig companies
.
Although Shuanghui's slaughter business income is high, its gross profit is much lower than that of packaged meat products.
According to the semi-annual report, the gross profit of slaughter business is about 6.
75%, and the gross profit of packaged meat products reaches 28.
46%
.
New Hope said that the slaughter business has not reached the absolute focus at present, and the next step will continue to exert efforts on the food side, especially in the deep processing of food
.
sj2China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Pig companies challenge slaughter companies?sj2China Feed Industry Information Network-Based on feed, serving animal husbandry

　　As a leader in the slaughtering industry, Shuanghui Development has established 30 meat processing bases and supporting industries in 17 provinces (cities) across the country.
The annual production capacity of slaughtering pigs is more than 23 million, and the processing meat products is more than 2 million tons.
The development of Shuanghui was flat
.
sj2China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Regarding pig companies entering the slaughtering industry, some investors are worried about whether slaughter companies can only collect pigs from small and medium-sized pig companies and retail investors in the future, and the bargaining power of slaughter companies will be reduced
.
Wu Linlin said that at the present stage, large groups have a large scale of breeding.
If the slaughter capacity basically covers their own production capacity, it will take a long time to evolve.
Moreover, large domestic slaughter companies are also developing in all directions, gradually improving their own breeding level, and starting to supply , Integrated development of production and sales
.
sj2China Feed Industry Information Network-Based on feed, serving animal husbandry

　　First-line distributors in the Henan live pig industry said that the threshold for slaughterhouses is not high.
The slaughter market in Henan is relatively stable and it is not difficult to deliver goods.
Many white strip distributors bring pigs to the slaughterhouse and then take them for sale
.
sj2China Feed Industry Information Network-Based on feed, serving animal husbandry

　　When upstream and downstream companies start to compete in an integrated manner, entering the other's main business is one of the main ways of competition, and slaughter companies will not "stand by
.
" Since last year, Shuanghui Development has begun to deploy its breeding business.
It is expected that after the pig breeding capacity construction project is completed and put into production, it will achieve a total of about 500,000 pigs and pigs for slaughter each year
.
sj2China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Muyuan has a production capacity of 60 million heads, which can fully meet the demand for slaughter, and the cost is the lowest in the industry
.
In this regard, people in the industry have discussed this on the open platform.
Most people in the industry believe that the threshold for aquaculture companies to develop the slaughter sector is much lower than that for slaughter companies to enter the aquaculture side, and most of the slaughter capacity of Muyuan shares is for their own use
.
sj2China Feed Industry Information Network-Based on feed, serving animal husbandry

　　But for Shuanghui Development, it has nearly 30 years of slaughtering experience, sales channels all over the country, and obvious market advantages
.
In recent research activities, Muyuan shares also stated that the company’s slaughter segment will not be able to achieve positive profitability in 2021, and is expected to achieve profitability in 2022.
As 8-9 slaughter plants are put into production by the end of the year, the number of internal pig sales will increase, and the slaughter end will be downstream.
Sales will also have phased market development pressure
.
sj2China Feed Industry Information Network-Based on feed, serving animal husbandry