As listed pig companies have successively disclosed live pig sales data in March, the internal structure of the industry has also undergone new changes.
Among them, “pig grass”Muyuan sharesThe sales volume of live pigs in the first quarter reached 13.817 million, far exceedingWen’s sharesćnew Hope4.02 million heads and 3.7 million heads, alone supporting half of the industry’s production capacity.
However, in the face of the continuous drop in the average price of live pigs, many listed pig companies have also fallen into the situation of “the more they sell, the more they lose”. According to industry insiders, the current breeding cost is still at a high level, and the industry as a whole is in a stage of moderate losses.
It is worth mentioning that the National Development and Reform Commission and relevant parties have “shot” and will carry out the fourth batch of central frozen pork reserves this year. It is planned to buy and store another 40,000 tons of frozen pork in the near future.
ććTop pig companies’ slaughtering accelerated in the first quarter
Judging from the live pig sales data disclosed by listed pig companies, the number of live pigs sold by many companies increased significantly in March.
byMuyuan sharesFor example, it sold 5.986 million live pigs in March (including 527,000 piglets), a record high, a year-on-year increase of 111.3%; live pig sales revenue was 7.43 billion yuan, a year-on-year increase of 5.3%.
ććWen’s sharesIn March, 1.4484 million meat pigs (including wool pigs and fresh products) were sold, an increase of 35.49% month-on-month and 143.63% year-on-year; sales revenue was 2.106 billion yuan, a month-on-month increase of 33.71% and a year-on-year increase of 14.33%.
ććnew HopeIn March, 1.4269 million live pigs were sold, a month-on-month increase of 46.00% and a year-on-year increase of 67.10%; sales revenue was 1.694 billion yuan, a month-on-month increase of 53.58% and a year-on-year decrease of 22.33%.
also,Zhengbang TechnologyćTianbang sharesćJin XinnongćAonong BioIn March, the sales of live pigs of other companies increased, among whichZhengbang Technology967,200 live pigs were sold, a month-on-month increase of 93.36%;Jin XinnongThe total sales volume of live pigs was 197,700, a month-on-month increase of 192.77%.
Further statistics show that in the first quarter of this year,Muyuan sharesThe slaughter volume has exceeded 10 million, reaching 13.817 million heads, more thanWen’s sharesćnew HopećZhengbang TechnologyćTianbang sharesćAonong Bioand so on.
As for the reasons for the sharp increase in slaughter volume, New Hope disclosed that it was mainly due to the normal release of production capacity and the increase in piglet placement. Wen’s Co., Ltd. said that the sales of pork pigs increased year-on-year, mainly due to the increase in the company’s investment in seedlings and the improvement of production performance.
ććThe industry as a whole is in a stage of moderate losses
Corresponding to the large increase in slaughter volume is the continuous drop in the average selling price of live pigs.
According to data from China Pig Network, the price of live pigs (external three yuan) in March fell from 12.72 yuan/kg at the beginning of the month to 11.78 yuan/kg, a drop of more than 7%. Although the price turned from falling to rising in late March, it was still significantly lower than that at the beginning of this year.
According to the data disclosed by Muyuan, the average sales price of commercial pigs in March was 11.67 yuan/kg, down 5.74% from January to February 2022; the average sales price of wool pigs in Wen’s March was 12.17 yuan/kg, down 3.03% month-on-month and year-on-year. down 53.55%.
It is worth noting that Muyuan Co., Ltd. has disclosed that the complete cost of pig breeding in the company from January to February is about 16 yuan/kg. This also means that while Muyuan shares set a sales record, they are also facing losses.
“In the context of rising feed costs and sluggish pig prices, listed pig companies have fallen into the situation of ‘the more they sell, the more they lose.'” Some industry insiders said that even so, many companies would rather lose money to maintain market share. , that is, it is recognized that this round of pig cycle will eliminate a large number of opponents, and can use money to smash a larger market share.
Zhu Zengyong, a researcher at the Beijing Institute of Animal Husbandry and Veterinary Medicine, Chinese Academy of Agricultural Sciences, predicts that the oversupply of commercial pigs is expected to ease in the third quarter of this year, pork supply and demand will turn to a basic balance, and pig prices are expected to rebound seasonally.
ććFor the fourth time this year, the country “shot” the purchase and storage
In the context of the loss of the pig breeding industry, relevant departments have “shot” to save the market.
On April 8, the National Development and Reform Commission announced that the recent pig-grain price ratio has continued to be lower than 5:1, which is in the first-level warning range for excessive decline determined by the “Improving the Government’s Pork Reserve Adjustment Mechanism and Doing a Good Job in the Pork Market to Ensure Supply and Stabilize Prices”. . In this regard, the National Development and Reform Commission and relevant parties will carry out the fourth batch of central frozen pork reserves this year, and it is planned to purchase and store another 40,000 tons of frozen pork in the near future.
It is worth noting that on March 31 a week ago, the National Development and Reform Commission had notified the third batch of central frozen pork reserves to purchase and store this year, and planned to purchase and store 40,000 tons of frozen pork on April 2 and 3.
At the same time, all localities have also actively started the purchase and storage work. For example, the Sichuan Provincial Development and Reform Commission recently announced that on the basis of the previous purchase and storage, it will start the temporary storage of 1,500 tons of provincial government frozen pork reserves, and form a joint effort with the state to “support the market” to promote the price of live pigs and pork to return to a reasonable range; Gansu Province Temporary purchase and storage of pork was started, and a total of 1,000 tons of purchase and storage plans were arranged.
In response to “shots” to rescue the market in many places,CITIC Construction InvestmentFutures Hog Industry AdvancedanalystWei Xin said that the continuous purchase and storage of frozen pork has boosted market confidence to a certain extent. However, since the quantity of frozen meat purchased and stored is relatively small compared to the quantity of live pigs sold, the diversion of supply is limited. The fourth round of purchasing and storage work started this year, which also shows that the loss of live pig production in this round has reached a certain length of time, which will inevitably lead to a certain degree of production capacity reduction.
(Article source: Shanghaisecuritiesnewspaper)