Under the dilemma of pig raising, small and medium-sized pig enterprises staged a "survival story"

As the so-called "flowers are not a hundred days of red", the pig market, which once made money every day, has not improved for a long time since it cooled down, and the increase in live pig production capacity has become a catalyst for the decline in live pig prices

Production capacity dilemma: small and medium-sized pig enterprises are between production reduction and "big gamble"

The price of live pigs has been declining.

"At present, the production capacity of live pigs in the industry is excessive

At present, from the perspective of the data of breeding sows, the production capacity of the pig industry exceeds the demand

At present, for small and medium-sized pig enterprises, raising pigs seems to be a "big gamble"

The upward channel of hog prices still needs to wait

Sun Jian (pseudonym), a former executive of a large listed pig company in Jiangxi, admitted to a reporter from China Business Daily that now the price of live pigs has entered a downward cycle.

Funding dilemma: I did not wait for the upward cycle, but waited for the capital chain to break

Lack of money has become a true portrayal of the current pig industry

For small and medium-sized pig companies, if "gambling" production capacity is the first step, then the cash flow will be under pressure

Small and medium scale farms are often the first to be squeezed out of the industry

It is undeniable that small and medium-scale farmers are the backbone of the pig industry, but due to lack of money and unable to withstand the pressure of the downward cycle, many small and medium-scale farmers choose to quit or join large-scale breeding enterprises

As the price of live pigs continues to decline, the scale of the pig industry may increase

Environmental dilemma: investment in environmental protection and epidemic prevention and control double the pressure on enterprises

Nowadays, going to the mountains to raise pigs has become the first choice for small and medium-sized pig enterprises

"It cannot be built in a residential area; to implement the 'three wastes' treatment, there must be complete treatment facilities for waste water and waste gas and waste gas; the water source cannot be located in the upper air outlet, and the environmental protection requirements are stricter; there must be a septic tank and sedimentation treatment

"The environmental protection pressure of raising pigs is very high

In addition, the prevention and control of pig diseases has also become a major concern for small and medium-sized breeding enterprises

"Actually, there are very few people who make money in the pig industry in 2019 and 2020.

" Qian Wenjun said, "Affected by the African swine fever epidemic, about 80% of the pigs in the hands of pig farmers died, and only about 80% of the pigs died.
20% of the people make money, and on the whole, most people still don’t make money
.
”

How to get out of trouble: In addition to "gritting your teeth and persevering", pig farmers may be able to get through the trough in many ways

"Actually, I never thought about quitting this industry
.
" Zhou Yong told the China Business Daily reporter: "Most people are still holding on to the mentality of 'the more you lose now, the more you will earn later'
.
Develop into a large-scale and process-based breeding model
.
Reduce the scale in time and do what you can
.
"

"Grit your teeth and persist" has become the consensus of most pig farmers
.
Sun Jian also believes that at present, companies can start from five aspects to get through the trough period
.
First, it should start from the improvement of pig farm costs
.
Strengthen the elimination of low-efficiency sows and improve the efficiency of sows
.
During this period, the introduction cost of sows is low.
If the efficiency of sows on the farm is low, the number of littering pigs is not high or the health degree is not high, it is recommended to eliminate sows and introduce high-yielding and high-health sows
.
Second, transform and upgrade the pig house to reduce the problem of low pig growth efficiency caused by insufficient equipment investment
.
Third, do a good job of upgrading biosecurity to prevent the occurrence of epidemics
.
Fourth, do a good job in market analysis and rationally apply hog hedging tools.
At present, hog futures are a good hedging tool in the industry
.
Taking the prices given in the second half of last year as an example, they are all above 17 yuan/kg, which is higher than the spot price.
Relative to the production cost, a pig has a profit of 200 to 300 yuan.
Profit is no problem
.
Fifth, and most importantly, enterprises still have to do what they can, do not expand blindly, and do a good job in capital planning to ensure the safety of the capital chain
.

"The main body of breeding should adjust the organizational structure within the industry
.
First of all, it should achieve stable production and realize the separation of market price fluctuations and production
.
Whether it is a single enterprise or an organized way (such as an association breeding cooperative), through medium and long-term production or sales contracts, or through the construction of the whole industry chain, such as when the price of live pigs is relatively low, the breeding end can differentiate or reduce upstream production losses through downstream (links) such as slaughtering, deep processing and sales, and can also be based on consumption Or the supply and demand situation of the whole society to arrange production and realize the integration of the industrial chain
.
In addition, as the production cost of the entire industry decreases, the losses at the breeding end will decrease
.
If we say that the industry is in a small profit or maintains a normal profit throughout the cycle , the industry is relatively stable
.
" Zhu Zengyong said
.

In addition, the relevant person in charge of the Ministry of Agriculture and Rural Affairs also stated at the symposium on live pig enterprises on March 3 this year that they will thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council and the spirit of the No.
1 Central Document, and take practical and effective measures to stabilize live pig production
.
Strengthen monitoring and early warning, continuously track and monitor the monthly inventory information of live pigs and reproductive sows, strengthen information release, and guide production scientifically
.
Implementing slender and long-term support policies to stabilize industry expectations
.
Implement the live pig production capacity control plan, consolidate local responsibilities, study and introduce local temporary subsidy and relief measures in a timely manner according to changes in the situation, and strengthen coordination with the frozen pork reserve adjustment policy to form a joint force
.
Do a good job of normalizing the prevention and control of African swine fever, strengthen the supervision of quarantine, transportation, slaughtering and other links, and coordinate the construction of grass-roots animal epidemic prevention systems
.
Strengthen guidance services, promote practical technologies that save costs and increase efficiency, and help farm households reduce losses
.