During the Spring Festival, the price of pork was low, and the market situation made pig and meat enterprises some melancholy. In this regard, according to the analysis of the reporter of China business daily, meat semi-finished products, meat gift boxes or “artifact” for enterprises to improve their performance.
the enterprise has some “melancholy”
In the Spring Festival of the year of the tiger, the peak sales season of pork has come, but the price has remained low, which makes enterprises feel at a loss.
Zhang Xingtao (a pseudonym), the relevant person in charge of a pig breeding enterprise in Henan, told the China Business Daily that before the Spring Festival, everyone was trying to sell pork and rush sales, because the price of pork after the festival would only be lower than that before the festival. As Zhang Xingtao expected, just after the Spring Festival holiday, pig prices hit a low again. According to the data of Shanghai Ganglian E-Commerce Holdings Co.Ltd(300226) – my Shenzhen Agricultural Products Group Co.Ltd(000061) network, the average price of domestic pigs (foreign three yuan) was 13.54 yuan / kg on February 7, down 17.29% year-on-year.
“Pork prices have decreased significantly compared with the previous week, and the decline is even more obvious compared with the previous year.” Liu Tong, head of Beijing Xinfadi Market Statistics Department, said that on January 7, the average wholesale price of white pork in Xinfadi market was 18.5 yuan / kg, down 7.5% from 20 yuan / kg on December 31, 2021 and 56.21% from 42.25 yuan / kg on January 7, 2021.
Pork prices may continue to fall. Zhu zengyong, a researcher at Beijing Institute of animal husbandry and veterinary medicine, Chinese Academy of Agricultural Sciences, said that the stock of fertile sows was at a high level in the second quarter of 2021, and the supply of piglets continued to remain high, indicating a significant increase in market supply in the first half of 2022. After the Spring Festival, there is still a risk of periodic rapid decline in pig prices. The cycle low may appear in April and may, and the price may be 30% lower than the industry average cost line.
From “lying down to make money” in the Spring Festival of the year of the ox to “promoting consumption through multiple channels” in the Spring Festival of the year of the tiger, the idea of meat sales is changing. Many pig enterprises and meat enterprises have launched new products and brands for fresh and refined products, and meat semi-finished products and meat gift boxes have become the protagonists in the market.
sell meat online
In the case of lower pork prices during the Spring Festival, pig enterprises and meat enterprises have focused on online meat selling. The relevant person in charge of Beijing ershang dahongmen wuroulian Food Co., Ltd. told China Business Daily that at present, the company basically covers all community platforms and wholesale e-commerce platforms. During the Spring Festival, the sales of some products are better than offline, and more products will be launched for online sales in the future.
Some enterprises have also embarked on the marketing road of creating “online red single products” this year. The relevant person in charge of Liuhe said that the sales star of single food products in January was its small crispy meat products, with a monthly sales volume of more than 130 million pieces. Single products such as meat slices of hotpot ingredients and fat intestines processed by semi-finished products have also sold more than 10 million pieces. The scene is not only sold on-site in offline supermarkets and farmers’ fairs, but also a considerable part from online stores, live broadcasting platforms, community e-commerce and private community operations, reflecting the diversification and youth trend of the new year vegetable market. At the same time, the combination of accurate traffic outbreak and brand effect is particularly obvious.
In addition, putting new year’s packaging on products has also become a major method for enterprises to boost sales. Enterprises have put on holiday “clothes” for meat food such as pork, chicken and beef.
A person in charge of a meat processing enterprise in Guizhou told reporters that the launch of gift box packaging is also to stimulate consumption under the festival effect, but this year, the pork price itself is low, the superposition of various packaging costs, and the profit at the sales end is still relatively limited. Another person in charge of listed pig enterprises also admitted that gift box sales may not be dominant, and offline sales are mainly fresh loose meat. If sold on e-commerce platforms, we still look at single products.
layout meat processing
At present, pig enterprises and meat enterprises are seeking a way out in meat processing business.
Muyuan Foods Co.Ltd(002714) said that the company will be more open in meat products in the future, expand production capacity in various ways, and actively expand a variety of sales channels. Jiangxi Zhengbang Technology Co.Ltd(002157) also said that in terms of deep-processing specialty foods, the company will choose terminal brands in the future to meet the needs of young people for delicious, simple and fast foods through the central kitchen.
Meat processing enterprises focus on a variety of meat products. Henan Shuanghui Investment & Development Co.Ltd(000895) said that the company’s current vegetarian products include “vegetarian industry” hand torn protein meat, “Tanwei” vegetarian steak, vegetarian beef granules, etc. The company will pay close attention to the market situation, actively carry out the R & D and promotion of vegetarian meat products, and enrich product categories.
In addition, it is noteworthy that the “expansion campaign” on the pig breeding track is not over. According to the data of Shanghai Ganglian E-Commerce Holdings Co.Ltd(300226) – my Shenzhen Agricultural Products Group Co.Ltd(000061) website, the large-scale farm marketing plans of all major pig enterprises in 2022 have increased to varying degrees, of which Muyuan Foods Co.Ltd(002714) is expected to increase by about 50%, Wens Foodstuff Group Co.Ltd(300498) is expected to increase by about 35%, Dekang agriculture and animal husbandry is expected to increase by about 65%, Fujian Aonong Biological Technology Group Incorporation Limited(603363) is expected to increase by 55%, Leshan Giantstar Farming&Husbandry Corporation Limited(603477) is expected to increase by about 67%, and 13 breeding enterprises above designated scale are expected to sell 140 million pigs, with an increase of about 28%.
\u3000\u3000 “It can be seen that there is still excess supply in the whole market. Pig raising enterprises extend to the downstream of the industrial chain and develop slaughtering and meat products processing business, which can form a hedge against the fluctuation of pig price in the breeding link to a certain extent. However, due to the influence of pig price, the profit at the slaughtering end is low and the operating rate of meat products processing production line is also affected. In the long run, meat products processing Business is still not the key to corporate profitability. ” Zhang Xingtao said.
