The game between retail pig farmers and big factories: reduce costs, retail investors win!

 　　Recently, the latest data from the Ministry of Agriculture and Rural Affairs showed that the production capacity of live pigs has been fully restored.
At the end of July, the number of reproductive sows and pigs in the country has recovered to 101.
6% and 100.
2% at the end of 2017, respectively, achieving the recovery target six months ahead of schedule
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Reflected in the price of pigs, in July, the national live pig price and the national wholesale market price of white striped pigs were 16.
43 yuan/kg and 22.
29 yuan/kg, down 55.
2% and 53.
6% year-on-year, and both "cut down"
.
From the supply side, this also means that raising pigs is becoming less profitable
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Not only don't make money, but the more you raise, the more you lose
.
According to the statistical survey and monitoring data of the National Development and Reform Commission, in May this year, the net profit per head of free-range pigs was -246 yuan, and the net profit per head of large-scale pigs was -158 yuan, a year-on-year decrease of 123.
9% and 113.
6%
.
In July, the above statistical indicators were expanded to -519 yuan and -527 yuan, a year-on-year decrease of 134.
6% and 128.
9%
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Speed ​​up the elimination of low-producing sowsE8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　On September 1, the live pig data released by the Ministry of Agriculture and Rural Affairs showed that from August 23 to August 29, 2021, the average purchase price of pigs for designated pig slaughter companies above designated size was 15.
75 yuan/kg, down 2.
2% month-on-month and down year-on-year 57.
9%
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　August has passed, and it is clear that the price of pigs is still "not going up"
.
Although the country has quickly launched three rounds of frozen pork procurement and storage since the pig price bottomed out in June, but due to the excessive number of live pigs in the market, the average pig price in July-August was also "decreased more and increased less"!E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　With increasing losses, the industry was forced to start phasing out sows
.
According to the Ministry of Agriculture and Rural Affairs, the number of reproductive sows in the country fell by 0.
5% in July, and this is the first decline after 21 consecutive months of growth!E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The national reproductive sows' growth from growth to decline is an important turning signal that cannot be ignored.
This means that important conditions for raising pig prices have begun to take shape, and it also means that pig production capacity is entering the "downward channel"
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　According to statistics, the national stock of reproductive sows in June 2021 was 45.
64 million, a decrease of 5% from the previous month.
Considering that there will be an increase in new "high-yielding sows" in July, the actual elimination of sows in July must be There are more than 220,000 heads, and the final stock of reproductive sows is about 45,411,800 heads
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Regarding the reduction in the stock of reproductive sows, Xin Guochang, the second-level inspector of the Animal Husbandry and Veterinary Bureau of the Ministry of Agriculture and Rural Affairs, said: Under the influence of this market, everyone began to adjust the production rhythm, began to exchange quality for quantity, and accelerated the elimination of low-yielding sows.
In terms of structure, all the sows left are high-producing sows
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Continuously decreasing production costsE8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The industry still wants to "reduce production costs" when eliminating low-yielding sows.
According to the data from April to July, the cost of raising pigs has indeed dropped significantly, but the fastest drop in costs is actually the retail investors
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　According to the monitoring of the Ministry of Agriculture and Rural Affairs, the cost per head of free-range pigs from April to July 2021 is 2811, 2642, 2589, and 2484 (yuan)
.
After 4 months of breeding adjustments, the cost of raising pigs for retail households has dropped by an average of 327 yuan/head!E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　However, the cost reduction of large-scale farms is relatively small.
Monitoring data from the Ministry of Agriculture and Rural Affairs shows that the cost per head of large-scale breeding pigs from April to July in 2021 is 2772, 2712, 2664, and 2605 (yuan), after 4 months of adjustment.
, The average cost of pig raising for large-scale farms is 167 yuan/head, which is almost only half of the cost reduction effect of retail investors
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Once upon a time, there was a clear "cost advantage" in the scale field compared to retail investors, but it is clear that small retail investors should adjust more quickly in the face of a real crisis
.
It is more difficult to reduce costs for large-scale farms as a whole, and the impact of rising feed prices will be greater
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The transformation of the production model of large factoriesE8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　It is worth noting that for the decline in performance in the first half of this year, pig companies have not unexpectedly attributed the cause to the sharp drop in pig prices and the rise in raw material prices
.
According to the data, the main business of Muyuan shares remained unchanged during the reporting period.
It was the breeding and sales of live pigs.
The main products were commercial pigs, piglets and breeding pigs
.
So, how can Muyuan shares, which only have pigs in its main business, make a big profit? Some people think that this is caused by a different model.
The "self-reproduction and self-support" whole industry chain model adopted by Muyuan shares can not only effectively control production Cost can also solve food safety issues, which makes Muyuan shares still show its cost advantage when the industry price plummets below the cost line
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In response, Muyuan replied on the interactive platform that, in the face of cyclical fluctuations in the pig breeding industry, the company has initially formed a pork industry chain with pig breeding as its main business, feed processing, pig breeding, commercial pig production, and slaughter
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In addition, although Longda Meat's operating income has declined year-on-year, it is the only company among the 15 companies that has achieved positive net profit growth
.
During the reporting period, the company achieved operating income of 10.
6 billion yuan, a year-on-year decrease of 8.
61%, and net profit attributable to the parent company was 308 million yuan, an increase of 1.
26% from the same period last year
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In the first half of the year, Longda Meat sold a total of 213,000 live pigs, a number that can only be counted down among listed pig companies
.
At the same time, although the company is located in Shandong, a major pig-raising province, it does not intend to make money by raising pigs.
Instead, it proposes an overall development strategy of "one body and two wings" with "food as the mainstay and breeding and slaughtering as the support"
.
Through the development of food industries such as pre-prepared vegetables, to resist the impact of pig prices on its slaughtering and breeding business
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Wen's shares, once known as the "first share of pig raising", said that in the future, the company will steadily promote the upgrade of the "company + modern industrial park + professional farmer" model, and strive to realize the transformation from an agricultural and animal husbandry enterprise to a food enterprise
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Dabeinong said that the recent development strategy mainly includes strengthening cooperation with agricultural colleges, research and development institutions, and high-tech talents.
The next stage is to increase the proportion of high-end materials, highlight the proportion of products, and increase profitability
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　When answering questions from investors on the interactive platform, Dawnrays also stated that the company is currently building a standardized central slaughter and processing plant with an annual slaughter of 1 million heads.
It is expected to be completed and put into production next year.
It will continue to consider projects to extend the product chain in the future
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry

　　In addition, Tianbang shares also sold aquatic feed business to Tongwei shares; in this regard, Tianbang expressed that it will focus more on the establishment and improvement of the industrial chain with fresh pork and meat products as the main body
.
E8W China Feed Industry Information Network-Based on feed, serving animal husbandry