[pig] stabilize the basic production capacity and prevent the ups and downs of production. Looking back on the No. 1 central document, the policies of pig production capacity control include promoting large-scale cultivation, adjusting the layout of livestock production, improving livestock species and stabilizing the capacity of the base. In 2018, African swine fever caused a great loss of pig production capacity in China. The policy has repeatedly stressed the importance of stable production and supply of pigs, and vigorously promoted pork transportation to prevent the spread of the disease in a large area again. In 2021, the number of pigs sold nationwide reached 670 million, a significant increase of 27.4% compared with less than 530 million in 2020, and the price of pigs fell rapidly. Since the second half of last year, the state began to guide farms to reduce excess capacity in an orderly manner. At present, the number of sows that can be bred is 42.9 million, with a cumulative reduction of 2.74 million in seven months, but there is still a distance of 1.9 million from the adjustment target. The 2022 document requires “stabilizing the long-term support policy for pig production, stabilizing the basic production capacity and preventing the ups and downs of production”, From the perspective of the capacity adjustment scheme recently launched by some provinces, it will be promoted by the combination of fixed-point monitoring, sow subsidy and collection, disposal and storage system, and the key support objects are large-scale farms. If the policy can be effectively implemented, it will be conducive to the concentration of production capacity to the head from the perspective of long-term cycle; In the short term, the regulation of pig production capacity is carried out in an orderly manner. COFCO jiajiakang and Tangrenshen Group Co.Ltd(002567) are recommended, and Wens Foodstuff Group Co.Ltd(300498) is recommended.
[seed industry] ensure the effective supply of grain and strengthen the independent innovation of seed industry. The 2022 document proposes to “make every effort to do a good job in grain production and important Shenzhen Agricultural Products Group Co.Ltd(000061) supply, and stabilize the sown area and output of grain throughout the year. Ensure that the sown area of grain is stable and the output is maintained at more than 1.3 trillion kg. The main production areas, main sales areas and production and marketing balance areas should ensure the area and output.” Wheat, corn and soybean are the contents of the heavy ink written in the No. 1 central document. They usually regulate their output and price by adjusting the minimum purchase price or subsidy policy. China’s Shenzhen Agricultural Products Group Co.Ltd(000061) output is optimistic, but there are still contradictions in the structure. For example, there has been a long-term problem of high dependence on imports of soybeans, and Chinese crushing enterprises have encountered many storms caused by pricing power. In 2021, China’s soybean output was 16.4 million tons, a year-on-year decrease of 16.4%, and the sowing area was 126 million mu, a year-on-year decrease of 22 million mu. To this end, the document proposes to “vigorously implement the soybean and oil production capacity improvement project” and “increase cultivated land rotation subsidies and incentives for large oil producing counties.” Soybean production capacity has received special attention in this year’s No. 1 document. At present, the bottlenecks and barriers faced by China’s seed industry are mainly reflected in the output efficiency. The per unit yield of major grain crops such as corn and soybean lags far behind the overseas advanced level. In recent years, policies focusing on seeds have been introduced continuously, and the policy direction of fully developing the seed industry is obvious. The 2022 document continues the strong support attitude for independent innovation. The document proposed that “we should vigorously promote the tackling of key agricultural core technologies such as seed sources, promote the construction of national major innovation platforms in the field of seed industry, start major agricultural biological breeding projects, and carry out pilot subsidies for major variety R & D and promotion.” Under the policy warm wind, the expectation of improving the fundamentals of the seed industry is relatively perfect, and the related targets of the seed industry may usher in an important policy window period. It is suggested to pay attention to high-quality seed enterprises Yuan Longping High-Tech Agriculture Co.Ltd(000998) , Winall Hi-Tech Seed Co.Ltd(300087) with leading scientific research strength and GM first mover advantage, as well as GM technology companies Beijing Dabeinong Technology Group Co.Ltd(002385) .
[soft goods] promote the construction of production protection zones and improve the target price policy. Over the years, the state has made policy guidance on soft commodities from two aspects: consolidating production capacity and stabilizing product prices. In terms of consolidating production capacity, scientifically and reasonably delimit important Shenzhen Agricultural Products Group Co.Ltd(000061) production protection areas such as cotton and sugar cane, and start the construction of high-quality cotton production base in Xinjiang; In terms of stabilizing product prices, we will continue to improve the target price policy of cotton in Xinjiang. At the same time, we will promote the implementation of the Shenzhen Agricultural Products Group Co.Ltd(000061) import diversification strategy and support enterprises to integrate into the global Shenzhen Agricultural Products Group Co.Ltd(000061) supply chain. This year, the state further improved the cotton target price policy and explored sugar cane full cost insurance and planting income insurance, so as to provide more stable guarantee for farmers and lay a solid foundation for the high-quality and sustainable development of China’s agricultural insurance.
