Pork prices have been rising for 3 weeks
According to the latest monitoring data from the Ministry of Agriculture and Rural Affairs, in the first week of April, the national pork price was 25.22 yuan per kilogram, up 0.2% from the previous month. It has been rising for 3 consecutive weeks.
The merchant explained that the recent rise in pork prices is mainly due to strong supply-side pig price trends.
At the end of March, the price of piglets nationwide rose by about 50% compared to the beginning of the year, reflecting a decrease in the supply of sows capable of breeding.
According to the Capital Securities Research Report, considering that supply in the pig industry is still sufficient in the first half of 2024, pig prices are expected to continue to be relatively low in the future. Large-scale markets with high costs and high debt may be impacted one after another, and catalyze the industry to accelerate the process of removing production capacity. The pig breeding industry has a high margin of safety, and deployment opportunities are obvious.
According to the China Galaxy Securities Research Report, the livestock and poultry farming chain is still the current focus. The focus is on low layout opportunities in the pig cycle, comprehensively considering the length of losses in the industry, the extent of sow degeneration, and the spread of the winter epidemic, taking into account the historical low valuation of the industry, and focusing on high-quality pig companies with leading cost control and good financial resources.
Pig breeding related enterprises:
COFCO Jiajiakang (01610): The company released 5.2 million pigs in 2023, slightly exceeding the target at the beginning of the year. By the end of 2023, the company's breeding capacity was 6.17 million heads.
Wanzhou International (00288): In the first three quarters of 2023, Wanzhou International's European business performed better than in other regions. Considering that US business losses are expected to narrow, the agency expects a strong rebound in 2024.