On February 22, the No. 1 document of 2022, the opinions of the CPC Central Committee and the State Council on doing a good job in the key work of comprehensively promoting rural revitalization in 2022, was issued, including eight parts: (1) make every effort to pay close attention to grain production and important Shenzhen Agricultural Products Group Co.Ltd(000061) supply; (2) Strengthen the basic support of modern agriculture; (3) Firmly hold the bottom line of not returning to poverty on a large scale; (4) Focusing on industry to promote rural development; (5) Promote rural construction in a solid and steady manner; (6) Highlight the actual effect and improve rural governance; (7) Strengthen policy guarantee and institutional innovation; (8) Uphold and strengthen the party’s overall leadership over the work of “agriculture, rural areas and farmers”. Among them, the contents related to breeding and seed industry include: “stabilizing the annual grain sowing area and yield”, “stabilizing the long-term support policy for pig production, stabilizing the basic production capacity”, “fully implementing the action plan for the revitalization of seed industry”, etc.
Fully implement the action plan for the revitalization of the seed industry and promote the tackling of key technologies of seed sources. Article 8 of Document No. 1 emphasizes the “full implementation of the action plan for the revitalization of the seed industry”. In July, the Central Committee for comprehensively deepening reform considered and adopted the action plan for the revitalization of the seed industry, which emphasizes “accelerating the implementation of major scientific and technological projects of agricultural biological breeding”, which is conducive to promoting the popularization and application of transgenic technology in China. At the same time, Document No. 1 proposed to promote the construction of national major innovation platforms in the field of seed industry, accelerate the implementation of key agricultural core technology research projects, and implement the systems of “showing leadership” and “ministry provincial linkage”, indicating that the central government has determined the strategy of jointly promoting the construction of seed breeding bases at the national and provincial levels, so as to accelerate the improvement of China’s seed industry technology.
Stabilize the long-term support policy for pig production to prevent big ups and downs of production capacity. Article 3 of Document No. 1 puts forward “stabilize the long-term support policy for pig production, stabilize the basic production capacity and prevent big ups and downs”. In the past 21 years, the pig breeding industry was oversupplied, and the average price of pigs in 22 provinces and cities fell from the highest 36.34 yuan / kg to 10.78 yuan / kg, a drop of 70%; The industry has sustained losses for five months, and the production capacity has been gradually eliminated. The long-term support policy for pig production shows that to a certain extent, the government will use administrative means to regulate pig supply in order to stabilize pig prices.
Investment proposal No. 2022 document 1 involves seed industry and breeding industry. The full implementation of the seed industry revitalization plan and the tackling of key seed source technologies are conducive to the promotion and iteration of transgenic technology, and the seed industry will enter a new stage of development. It is suggested to actively pay attention to excellent seed industry leading enterprises, including Yuan Longping High-Tech Agriculture Co.Ltd(000998) (000998. SZ), Shandong Denghai Seeds Co.Ltd(002041) (002041. SZ), etc. At the level of pig breeding industry, policy inhibition of fluctuation is one aspect of the cycle operation, and the core is the cost reduction and efficiency increase of enterprises and the steady improvement of scale. It is suggested to pay attention to Muyuan Foods Co.Ltd(002714) (002714. SZ), Wens Foodstuff Group Co.Ltd(300498) (300498. SZ), Tecon Biology Co.Ltd(002100) (002100. SZ), Tangrenshen Group Co.Ltd(002567) (002567. SZ), Fujian Aonong Biological Technology Group Incorporation Limited(603363) (603363. SH), etc.
Risk tip Shenzhen Agricultural Products Group Co.Ltd(000061) risk of price fluctuation, animal epidemic risk, raw material price fluctuation risk, food safety risk, policy risk, etc.
