The big slaughterers are already overwhelmed by the fact that the big pig farmers are soaring...

Shuanghui Development, a major slaughterer, both declined in revenue and net profit in the first half of this year, but Muyuan, a major pig farmer, decided to raise nearly 10 billion yuan at this time to expand slaughter production capacity

Large butchers encounter revenue difficulties

In the first half of this year, Shuanghui Development, the leader in the slaughter industry, delivered a report of both decline in operating income and net profit: realized revenue of 34.

In this regard, Shuanghui Development stated that the decline in revenue was mainly due to the significant decline in the price of pigs and meat in the current period.

However, as the price of live pigs has fallen, slaughter and meat product processing should have been able to purchase live pigs and reprocessed meat products at a lower cost to obtain high profits

Guo Gang, a pig analyst at the Agricultural Products Division of Shanghai Iron and Steel Union, also told a reporter from China Business Daily that starting from April this year, as the price of pigs continued to fall, the operating rate should have risen rapidly.

In addition, some insiders said that the performance of Shuanghui Development has not improved more because of the low capacity utilization rate

Large pig farmers strengthen their slaughter capacity

Recently, Muyuan Co.

It is worth noting that the pork supply in the second half of this year may be more than that in the first half of this year

Under this circumstance, the expansion of Muyuan shares seems a bit radical

However, Qin Jun, secretary of the board of directors and chief strategy officer of Muyuan Co.

Is slaughter a good business?

The falling prices of live pigs have become the industry's heart disease, so expanding borders is becoming a popular practice in the industry

According to Muyuan, the expansion may be precisely in response to the impact of the fall in live pig prices

It is worth mentioning that, in addition to the expansion of production capacity, Muyuan also intends to increase categories

At the same time, big butchers are also actively expanding their meat processing business

A relevant person in charge of a listed pig company confessed to a reporter from China Business Daily that the development of slaughter and processing business by pig companies can form a hedge against fluctuations in pig prices in the breeding process, which moderately alleviated the overall impact of the decline in pig prices on the company

It is worth noting that in the first half of this year, the revenue dilemma faced by Shuanghui Development may be a microcosm of the slaughter industry