On March 2, Liu Yonghao, member of the National Committee of the Chinese people’s Political Consultative Conference and chairman of New Hope Liuhe Co.Ltd(000876) group, revealed at the media communication meeting that this year he would submit a total of Eight Proposals on grain saving, stabilizing the pig cycle and strengthening the cultivation of specialization and innovation.
carry out the “special action for grain saving”
As the largest feed producer in China, Liu Yonghao introduced that New Hope Liuhe Co.Ltd(000876) one year can produce nearly 30 million tons of feed, which also means using nearly 30 million tons of corn, wheat, soybean, sorghum and other food crops. These grains are equivalent to 4.4% of the country’s total output, corresponding to 77 million mu of cultivated land.
“If we save 1% of our grain consumption every year, we can save 300000 tons of grain, corresponding to the grain produced by 770000 mu of cultivated land. If we persist for five consecutive years, it is equivalent to saving 34 million mu of good farmland.” Liu Yonghao said that in February this year, New Hope Liuhe Co.Ltd(000876) decided to implement the “special action for grain saving”, which is also an important action plan and goal of New Hope Liuhe Co.Ltd(000876) group in the next five years.
Liu Yonghao said that this year’s No. 1 central document continued to emphasize food security, and increase food security and reduce expenditure. This special action can not only contribute to food security; It can also reduce the use of farmland and contribute to adhering to the red line of 1.8 billion mu of cultivated land; At the same time, it can also realize low-carbon and environmental protection production, reduce emissions and practice the concept of double carbon development.
When talking about New Hope Liuhe Co.Ltd(000876) how to achieve the goal of saving 1% grain every year, Liu Yonghao gave three measures: first, optimize pig varieties and reduce grain consumption through breeding engineering to achieve 1 / 3 of the saving goal; Second, through continuous optimization of feed formula, 1 / 3 of the saving target is achieved; Third, through digital optimization of breeding methods, reduce the use of feed and achieve 1 / 3 of the saving goal.
It is worth mentioning that although China has been advocating grain conservation in recent years, it is mostly from the consumer side. At present, grain saving from the production end has increasingly become the consensus of the grain industry.
In order to truly realize the benign development of both saving grain and increasing efficiency and increasing income and promoting production, Liu Yonghao put forward three suggestions in the proposal on multi measures to save grain and improve efficiency and ensure the safety of grain and cultivated land:
I. relax policies, ease the short-term supply and demand balance of raw materials, and optimize the long-term strategic layout. On the one hand, effective measures should be taken to alleviate the short-term supply-demand balance, such as liberalizing the import restrictions of corn in South American countries, moderately increasing the scale of state-owned trade quota of corn imported by private enterprises, strengthening the strategic docking of imported grains outside the quota, and improving the overall market competitiveness and operation efficiency. On the other hand, promote the long-term strategic layout with policies, encourage and protect farmers to plant oil crops such as rapeseed and soybean, and improve China’s oil and oil production capacity; Support the digital transformation of enterprises in the bulk commodity supply chain system, guide and guide enterprises to participate in the research and prediction of the market, so as to reduce the loss of procurement misjudgment and improve capital efficiency.
II. Encourage feed enterprises to achieve the goal of grain saving by continuously optimizing feed formula and breeding enterprises to optimize breeding methods. Including vigorously promoting digital feed formula technology and precision feeding technology, providing financial subsidies and support for the software and hardware technological transformation of feed breeding enterprises, and providing financial incentives and credit support for the procurement and technological transformation of production equipment such as improving the precision feeding level of breeding enterprises; Support leading enterprises with policies to participate in the R & D and utilization of miscellaneous meal, grain processing by-products, edible animal by-products, microbial protein, insect protein and other protein feed resources.
III. under the current situation of widespread losses of breeding enterprises, the state and relevant departments should issue policies to increase financial support for self-developed grain saving breeding projects of enterprises. Encourage and protect the enthusiasm of enterprises for independent research and development, prevent enterprises from reducing scientific research investment due to losses, ensure the sustainability of breeding research personnel and funds, and enable professional technicians to focus on optimizing the breeding research of breeding pigs and birds for a long time, so as to optimize livestock and poultry varieties through breeding engineering, continuously improve the conversion rate of livestock and poultry feed and reduce food consumption.
this year’s pig cycle fluctuation
narrower than last year
At the media communication meeting held today, Liu Yonghao admitted that the current pig industry is at a trough. This round of pig cycle is not only affected by African swine fever and the epidemic situation, but also brought great impact and pressure to pig breeding enterprises due to the sharp fluctuation of international food prices. Due to the continued downturn in pork prices, New Hope Liuhe Co.Ltd(000876) Liuhe, a listed company of New Hope Liuhe Co.Ltd(000876) group, also suffered large losses last year. However, the New Hope Liuhe Co.Ltd(000876) group is still relatively profitable in 2021.
When asked about the turning point of the pig cycle, Zhang Minggui, Secretary of the Party committee of New Hope Liuhe Co.Ltd(000876) group, executive chairman and President of New Hope Liuhe Co.Ltd(000876) Liuhe, said that there have been relatively regular and irregular periodic fluctuations in the characteristics of breeding enterprises and breeding patterns for many years, while the fluctuation range caused by African swine fever has been significantly more violent, which was not the case in the industry in the past. The industry is expected to show some volatility this year, but the fluctuation range of the pig cycle is expected to narrow compared with the peak and trough range of last year, but the overall situation is still not optimistic.
The reporter learned that at present, Beijing, Jiangxi, Hubei, Chongqing, Yunnan, Shaanxi, Ningxia and other places have started the collection and storage work. According to the national development and Reform Commission, other places will also start in the near future. From past experience, the start of pork collection and storage will often further boost the confidence of the industry in the short term.
In fact, the eight proposals submitted by Liu Yonghao this year include the proposal on stabilizing pig production capacity, reducing cyclical fluctuations and guiding the steady upgrading of pig industry.
Turning to how to eliminate the impact of reducing the pig cycle on the industry and economy, Liu Yonghao suggested: first, encourage pork consumption, guide and support production enterprises to process and develop innovative products suitable for consumer needs. Second, refine and improve the pork purchase and storage and import and export regulation policies, strengthen market expectations, and give more effective play to the regulatory role of policies. Third, increase financial support for breeding enterprises in the counter cycle, guide institutions to make reasonable judgments, and improve financial risk hedging tools. Fourth, by establishing the traceability system of food raw materials, encourage government departments and units to purchase traceability meat, egg and milk products, guide enterprises to pull through the industrial chain of food integration in the downstream of breeding and slaughtering, and improve the anti risk ability of upstream breeding.
