Only 7 yuan a pound! Pork prices cut in half!Pig farmers lose money and rush to sell pigs
Zhongxin Finance, January 12 (Reporter Xie Yiguan) During the Spring Festival of the Year of the Ox, people are still worried about pork that costs more than 30 yuan per catty. As the Spring Festival of the Year of the Tiger approaches, we can already buy pork that costs less than 10 yuan.
The price of pork is only 7 yuan a pound
“The front tip with skin is 8.98 yuan per pound, the back elbow is 9.98 yuan per pound, the front row of the neck is 12.98 yuan per pound, and the fresh rib is 24.98 yuan per pound.” This is the price of pork in a large supermarket in Fengtai District, Beijing.
On the evening of the 10th, when asked by a reporter from Zhongxin Finance and Economics, the supermarket staff said, “Now the front tip with leather is discounted, and it only costs 7 yuan per catty.”
The reporter visited and found that although other supermarkets and vegetable markets have not seen such low prices, merchants have also reported that the price of pork has dropped recently.
“For example, hind leg meat used to sell for 15 yuan per catty, but now it sells for 14 yuan; pork belly sells for 17 yuan and 19 yuan per catty, but before it was sold for more than 20 yuan.” A butcher at a vegetable market in Xicheng District, Beijing tell reporters.
Not only in the Beijing area, but in Jiaozhou, Shandong, “the pork was sold for 8 yuan a pound last time.” A resident told reporters.
According to the monitoring of the Ministry of Agriculture and Rural Affairs, from December 27, 2021 to January 2, 2022, the average weekly price of pork in the wholesale market was 23.36 yuan per kilogram, down 1.1% month-on-month, and has been falling for four consecutive weeks, down 46.9% year-on-year. In addition, according to the monitoring of Zhuochuang Information, since January, the average market price of lean-type white striped pork in the country has dropped by 11.78%.
Why did “Second Senior Brother” take the slide again?
This is mainly affected by supply and demand. From the perspective of supply, “in January, the pig slaughtering plans of various breeding units increased month-on-month compared with December 2021, and the enthusiasm for slaughtering pigs was also higher, and the overall supply was sufficient.” Zhuo Chuang Information pig analyst Wang Yanan analyzed to reporters.
“In fact, the whole market is not optimistic about the price after the Spring Festival, so pig farmers will rush the pigs to be released in the first month to be released before the Spring Festival, which will increase the number of live pigs in the short term.” Pig industry analyst Feng Yonghui told reporters that an obvious feature is that the number of small-weight pigs has increased significantly recently.
In terms of demand, Wang Yanan pointed out that the peak season for cured meat in December has passed, resulting in a drop in pork demand in early January, making it more difficult to sell high-priced pork. According to the monitoring of Zhuochuang Information, after New Year’s Day, the average operating rate of key slaughtering enterprises was 31.28%, down 3.84% compared with the end of December.
In Feng Yonghui’s view, there will be an interval between the peak demand for bacon made in the south and the peak demand for “killing pigs” in the north. During this period, a price trough will be formed, which will last about two weeks.
What will happen to pork prices in the future?
“The downward trend of pork prices may continue in the short term.” Wang Yanan said that by the end of January, the pre-holiday concentrated stocking stage will be entered, and there may be room for a small increase in transaction prices.
“Looking at the situation in previous years, after the Spring Festival, the demand for pork will drop rapidly, and the price of pork is expected to show a downward trend.” Wang Yanan said.
However, Feng Yonghui believes that although it is a traditional off-season for consumption after the Spring Festival, the entire industry makes consistent decisions based on the current production capacity information, which is to deliberately avoid the off-season consumption after the Spring Festival, and put many pigs to be released after the Spring Festival before the Spring Festival. The number of pigs that can be slaughtered after the Spring Festival has dropped significantly. Both supply and demand have dropped, and there may be a situation of “off-season is not short”.
Pig prices fell sharply, farmers fell into losses
Wang Yanan revealed to reporters that according to the monitoring of Zhuochuang Information, as of January 11, since January, the price of live pigs has dropped by 13.49%. Affected by the decline in the price of live pigs, since January 10, the profit of pig breeding has completely fallen below the cost line.
“It is understood that the average head loss is now more than 200 yuan.” Feng Yonghui also said, “So we can see that some pig farmers will refuse to fill up the stalls, choose empty stalls, or just eliminate some pigs to further reduce the scale. .”
It is worth mentioning that the live pig futures launched in January 2021 have now been in operation for a year. Does it play a role in risk aversion for pig farmers?
In this regard, Feng Yonghui said that most pig farmers do not understand the professional knowledge of pig futures, which can only be used as a reference for future prices, and cannot fully exert the function of hedging.
Have you bought pork recently? Have pork prices dropped? (Finish)
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