The national average price of pork drops by 25%, causing pig companies to decline in performance, new hope in the first quarter

 　　The price of pork has dropped, and the performance of listed pig companies has also suffered a sharp decline.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　According to the monitoring of the Ministry of Agriculture and Rural Affairs, as the supply and demand situation continues to improve, pork prices have fallen for 12 consecutive weeks, falling to about 40 yuan per kilogram, a year-on-year decrease of about 25%.
The pork sector has also entered a downward trend.
Listed pig companies have successively released financial report data showing that their performance is experiencing a decline.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　New Hope recently disclosed its performance forecast.
It is expected that the net profit for the first quarter of 2021 will be 120 million to 180 million yuan, a decrease of 88.
94%-92.
62% from the same period last year.
The announcement showed that the sales price of live pigs during the reporting period decreased compared with the same period last year.
The increase in the price of feed ingredients and the impact of the epidemic caused the increase in the cost of live pig breeding, which led to the decline in the profitability of the pig industry, which was the main reason for the company's decline in performance during the reporting period.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Under multiple pressures, hog companies are launching hog futures hedging business.
As of press time, seven listed companies have issued announcements this year to launch the hedging business of hog futures, and five listed companies announced related announcements last year.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　As the pig cycle goes down, will the industry experience continuous and long-term losses? An agricultural industry observer told the Changjiang Business Daily that from the past situation and the major pig companies' updated corporate plans, pig companies are responding to the decline in pig prices through various means , To improve its own risk management level, the annual performance may be subject to large variables.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Pork prices have fallen for 12 consecutive weeksMid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　According to the monitoring of the Ministry of Agriculture and Rural Affairs, as the supply and demand situation continues to improve, pork prices have fallen for 12 consecutive weeks, falling to about 40 yuan per kilogram, a year-on-year decrease of about 25%.
At present, pork prices have fallen to their lowest point since the recovery of pig production capacity in this round.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Last week, a reporter from the Yangtze River Commercial Daily visited the old farmer’s vegetable market in Optics Valley, Wuhan.
There were basically consumers queuing in front of every pork shop.
A pork merchant told reporters: "The lean meat is 28 yuan per catty, which is 3 yuan cheaper than before, and the leg meat is 18 yuan, which used to cost more than 20 yuan per catty.
"Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Subsequently, a reporter from the Changjiang Commercial Daily came to Zhongbai Warehouse in Hongshan District, Wuhan, where many pork products were being promoted.
"The black pork ribs that used to cost more than 60 yuan per catty are now 55 yuan per catty; the spine, which was previously 29 yuan per catty, now only costs 23 yuan per catty.
"Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Regarding the fluctuations in pig prices, Chen Guanghua, deputy director of the Animal Husbandry and Veterinary Bureau of the Ministry of Agriculture and Rural Affairs, pointed out that the current pork price has fallen to the lowest point since the recovery of pig production capacity in this cycle.
According to Chen Guanghua, the price of pigs has indeed fallen a bit fast in recent months.
The main reason is that the slaughter of pigs has increased significantly, and the consumption of pork has fallen after the Spring Festival.
This increase and decrease are two factors superimposed.
In addition, there are also farmers who panic out of slaughter to form "stomping benefits.
"Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The price of live pigs has large and small cycles, and the large cycle generally lasts for 2-3 years, operating in a pattern of "rising in one year, keeping it flat in one year, and falling in one year".
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　From the perspective of the pig price cycle, the year is also divided into off-season and peak season.
From the perspective of the pig cycle over the years, generally the 3-4 months, July-September, and November-January are low seasons for pork consumption.
.
In May-June, October, and February each year, pork consumption will increase a lot due to holidays.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　According to data from the National Bureau of Statistics, at the end of the first quarter of this year, there were 43.
18 million reproductive sows in the country, returning to 96.
6% at the end of 2017, 416 million live pigs, returning to 94.
2% at the end of 2017, and pork production was 13.
69 million tons.
A year-on-year increase of 31.
9%.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Chen Guanghua pointed out that according to the trend of pig prices throughout the year, there may be a wave of increases in pig prices around the Dragon Boat Festival.
But the most tight period of pork supply has passed, and prices will no longer exceed previous highs.
Chen Guanghua said that based on the number of newborn piglets in the early period, it is expected that in the second quarter, the number of fat pigs from large-scale pig farms across the country will increase by 50% year-on-year, and the market supply is generally abundant.
According to the current production recovery momentum, the pig stocks in June and July this year are expected to return to the level of normal years.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　New Hope's net profit in the first quarter fell by 88.
94%Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The price of live pigs continued to fall, but the price of major feeds rose significantly year-on-year.
Feed costs accounted for 57.
2% of the cost of pig breeding in my country.
Under the double pressure, the profitability of breeding companies is naturally far less than that of the same period last year.
According to the data monitoring of Zhuo Chuang Information, after March, the profit value of self-reproduction and self-support fell from 1,650 yuan/head to 960 yuan/head, a decrease of 41.
82%.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　For piglet fattening households, the profitability of breeding is also shrinking.
The cost of piglet fattening is about 24.
0 yuan/kg, and the current pig price has fallen below the second fattening cost line.
In addition, this batch of fat pigs for slaughter corresponds to the piglets in December last year.
At that time, the piglet prices were high, so the farms generally suffered losses.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　According to analysis by Zhang Lili, a senior analyst of Chuang Information Pig, in some areas such as Northeast China, the price of big fat pigs has fallen below 11 yuan per catty, rushing to 10 yuan, reaching the cost line of breeding enterprises.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Breeding farms may face losses, and live pig companies are also facing considerable pressure.
On the evening of April 14, New Hope disclosed its performance forecast.
The net profit for the first quarter of 2021 is expected to be 120 million to 180 million yuan, a decrease of 88.
94%-92.
62% from the same period last year.
The announcement showed that the sales price of live pigs during the reporting period decreased compared with the same period last year.
The increase in the price of feed ingredients and the impact of the epidemic caused the increase in the cost of live pig breeding, which led to the decline in the profitability of the pig industry, which was the main reason for the company's decline in performance during the reporting period.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　On April 13, Zhengbang Technology disclosed its performance forecast.
It is expected that the net profit attributable to the parent will be 205 million yuan to 305 million yuan from January to March 2021, a year-on-year decrease of 66.
32%-77.
36%.
Regarding the reason for the sharp decline in performance in the first quarter, the company said that the decline in live pig prices compared with the same period last year was the main reason for the decline in performance.
At the same time, the company's elimination of 350,000 low-efficiency breeding sows in the first quarter also caused a certain drag on short-term performance.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　That night, Shunxin Agriculture released its 2020 annual report.
According to data, in 2020, Shunxin Agriculture achieved operating income of 15.
511 billion yuan, a year-on-year increase of 4.
1%; net profit attributable to shareholders of listed companies was 420 million yuan, a year-on-year decrease of 48.
1%.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　For pig companies, in order to ensure stable operation, the importance of price risk management has become more and more prominent.
As of April 20, this year, seven listed companies have issued announcements that they intend to carry out the hedging business of hog futures, and five companies have also issued related announcements last year.
Mid China Feed Industry Information Network-Based on feed, serving animal husbandry

　　An agricultural industry observer told a reporter from the Changjiang Business Daily: "Agriculture is greatly affected by uncontrollable factors such as the natural environment.
At present, the price of pigs is falling and the damage to pig companies is widespread.
Can we increase the level of large-scale breeding in the future and further increase the pork surcharge? Value is essential to the long-term performance development of a company.
"Mid China Feed Industry Information Network-Based on feed, serving animal husbandry