Since the beginning of this year, the price of the "second brother" has continued to decline, and at present, the price of pork has fallen below 15 yuan / kg.
According to the latest data from the website of the National Development and Reform Commission, the price of live pigs nationwide was 14.96 yuan / kg in the first week of September, falling below 15 yuan / kg again, down 3.55 percent from last week. This is the seventh week in a row that pig prices have fallen, hitting a nearly 10-week low and approaching a 28-month low set at the end of June.
Earlier, at the press conference of the 2021 Chinese Farmers' Harvest Festival on September 1, a spokesman for the Ministry of Rural Agriculture called on people to "eat more pork", saying that pork prices have fallen very fast recently, and hope that everyone will take advantage of this opportunity to eat more pork and buy more pork.
According to the National Development and Reform Commission, the price of pig feed nationwide was 4.56 in the past week, down 3.80% from the previous month. According to the current price and cost, the average loss of pig breeding head in the future is 656.66 yuan, which is the 16th consecutive week of pre-loss. Under the background of not making a profit but losing money in raising pigs, some scattered farmers choose to "cut meat and leave the market", while pig-raising enterprises with high production capacity choose to control costs and increase efficiency.
According to the Securities Times, a big pig farmer contacted the local bacon workshop to treat the fat at once into bacon to reduce feed, water, electricity and labor costs.
On the other hand, the major pig farming enterprises are still carrying out the work of expanding production capacity, and the volume of production has remained stable as a whole in recent months. The number of Wen's shares rose month-on-month, from less than 1m in May to more than 1.2 million in August, a two-year high.
In addition, New Hope, Tianbang Technology, Zhengbang Technology, Tang Renshen and other listed companies have stepped in to increase their own shares at a time when their share prices are in the doldrums. As of August 31, New Hope repurchased about 10.01 million shares, accounting for 0.2224% of the company's total share capital, with a total transaction value of 229 million yuan. Tianbang shares are planned to be increased by 100 million yuan to 150 million yuan by the chairman and other senior executives, which will be completed within six months from May 24, 2021. Zhengbang Technology Co., Ltd. bought back a total of 38.58 million shares, accounting for 1.23% of the company's total share capital, with a total repurchase amount of 495 million yuan.
In the environment of downward pork prices and high feed prices, on the one hand, many pork enterprises choose to continue to reduce costs, on the other hand, to increase the distribution of food and diversify their businesses to increase profits.
Leading Muyuan shares said that the previous 15 yuan / kg breeding costs continue to be compressed; Wen shares said that the complete cost target for pig breeding is to drop to about 10 yuan / jin in the second half of the year, and to less than 8 yuan / jin in 2022.
At the same time, Tang Renshen invested 200 million yuan to set up Guangdong Tangrenshen Industrial Development Co., Ltd., saying that it will gradually extend to downstream industries, constantly expand the industrial scale, and form a competitive advantage of the whole industrial chain of feed, breeding and meat processing. Wen's shares said that in-depth development of the food end, from a production-oriented enterprise to a food-oriented enterprise, will also expand the business step by step, from fine segmentation to prepared vegetables and then to leisure products. New Hope also said that 90% of hot pot enterprises are their customers, and their profits and revenues have also increased significantly, and the food industry as a whole was good in the first half of the year.
In addition, pig prices continue to decline, various localities speed up the adjustment of pork reserves, or are expected to stabilize pork prices. Public data show that on September 7, Chongqing announced the start of the government pork reserve collection and storage work.
The National Development and Reform Commission said that recently, various localities have actively carried out the collection and storage of pork reserves in accordance with the relevant regulations. According to the preliminary statistics of the National Development and Reform Commission, collection and storage work has been carried out in Beijing, Tianjin, Shanxi, Inner Mongolia, Anhui, Hubei, Hunan, Guangdong, Hainan, Sichuan, Tibet, Shaanxi and other places. Inner Mongolia, Jilin, Fujian, Guangdong, Chongqing, Sichuan, Guizhou, Tibet, Gansu and other places plan to continue storage in September.
As New Hope and other companies said in a survey conducted by institutions, the pig industry, as a typical entity operation, should focus on the long term, lay a good foundation and practice internal skills, and should not only pursue short-term financial indicators, let alone immediate gains and losses. in order to usher in the highlight of the market.