On March 2, the media communication meeting of New Hope Liuhe Co.Ltd(000876) group was held in Beijing. 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, said that according to preliminary calculation, the sales of New Hope Liuhe Co.Ltd(000876) group exceeded 240 billion yuan in 2021, reaching a new level. However, due to the superposition of African swine fever and covid-19 pneumonia in the pig cycle, the listed company New Hope Liuhe Co.Ltd(000876) Liuhe has a large loss, and the New Hope Liuhe Co.Ltd(000876) group has a slight profit as a whole.
At the national two sessions this year, Liu Yonghao brought the proposal on stabilizing pig production capacity, reducing cyclical fluctuations and guiding the steady upgrading of pig industry. This proposal puts forward some suggestions on solving the large fluctuation of pork price and eliminating the impact of reducing the pig cycle on the industry and the national economic operation. Liu Yonghao said that looking forward to the future, he believed that with the support of the government, the trust of Lbx Pharmacy Chain Joint Stock Company(603883) and the efforts of enterprises, he would face it with a positive attitude, reduce costs, improve efficiency and meet challenges through a series of measures and methods, and New Hope Liuhe Co.Ltd(000876) would be able to overcome the pressure brought by the pig cycle and covid-19 pneumonia.
Liu Yonghao also pointed out that the comprehensive cost of feed has risen for five consecutive years. Breeding enterprises are not only facing survival difficulties, but also multiple bottlenecks such as capital, talent, technical pressure and service capacity, which urgently need external support.
As for the trend of pork price this year, Zhang Minggui, Secretary of the Party committee of New Hope Liuhe Co.Ltd(000876) group, New Hope Liuhe Co.Ltd(000876) Liuhe executive chairman and President, said that the overall situation of pork price this year is still not optimistic, but the range of price fluctuation may be narrowed New Hope Liuhe Co.Ltd(000876) Liuhe will further tap the potential in system construction, team building and pig raising cost to better cope with industry fluctuations.
low pork price
brings great difficulties and pressure
The impact of pig cycle is obvious. According to the monitoring data, in the 8th week of 2022, the weekly average value of the total ex factory price index of lean white strip pork in 16 provinces and cities was 16.22 yuan per kilogram, down 0.5% month on month and 51.1% year-on-year, 4.9 percentage points lower than that of last week.
At the media communication meeting, as soon as Liu Yonghao took his seat, he directly cut into the topic of pig cycle.
"Pig food is safe in the world. China is the world's largest producer and consumer, but the epidemic of African swine fever, covid-19 pneumonia and the fluctuation of international food prices have brought great difficulties and pressure." Liu Yonghao said.
Liu Yonghao said that the pig industry is now at the bottom of the pig cycle. Taking New Hope Liuhe Co.Ltd(000876) group as an example, according to preliminary calculation, the sales volume of New Hope Liuhe Co.Ltd(000876) group exceeded 240 billion yuan in the past year, reaching a new level. However, due to the superposition of African swine fever and covid-19 pneumonia in the pig cycle, the listed company New Hope Liuhe Co.Ltd(000876) Liuhe has a large loss, and the New Hope Liuhe Co.Ltd(000876) group has a slight profit as a whole.
However, New Hope Liuhe Co.Ltd(000876) group has maintained a good performance in terms of tax, employee social security benefits, loan credit and so on. In 2021, New Hope Liuhe Co.Ltd(000876) still invested more than 10 billion yuan in agriculture and food, fulfilling the commitment of New Hope Liuhe Co.Ltd(000876) "the Fifth Five Year Plan".
encourage pork consumption
optimize the supply of pork products
In the proposal on stabilizing pig production capacity, reducing cyclical fluctuations and guiding the steady upgrading of pig industry, Liu Yonghao put forward four suggestions, including: first, encourage pork consumption, guide and support production enterprises to process and develop products suitable for consumer needs. Second, refine and improve pork collection and storage. With the policy of import and export regulation, strengthen market expectations and give more effective play to the adjustment role of policies. Third, increase counter cyclical financial support for breeding enterprises, guide rating agencies to make reasonable and objective judgments, and improve financial risk hedging tools. Fourth, by improving the traceability system of food raw materials, encourage organs and units to purchase traceable meat, egg and milk products, guide enterprises to open up the industrial chain of food integration in the downstream of breeding and slaughtering, and improve the anti risk ability of upstream breeding.
When will the inflection point of pig cycle come?
Turning to the trend of pig price, Zhang Minggui said that due to the dispersion of breeding pattern, the uncertainty is still relatively high, so it is difficult to accurately judge the cycle.
The peak of inventory is roughly from March to may in the first half of the year. Therefore, the market pressure in the first half of this year is relatively high, and it may be better in the second half of this year. However, from the perspective of leveling throughout the year, the pork price is not particularly optimistic, but the range of price fluctuation may be narrowed New Hope Liuhe Co.Ltd(000876) Liuhe will further tap the potential in system construction, team building and pig raising cost to better cope with industry fluctuations.
"Our industrial structure is dominated by feed, including pig raising, poultry raising, food, etc. the layout is relatively comprehensive and the role of hedging and complementarity is great. We have been engaged in aquaculture for more than 40 years and have experienced many cycles. I believe we can overcome it in this round, and we are confident." Liu Yonghao said.
carry out special action
grain saving and efficiency improvement
In 2022, No. 1 central document still placed "the most important position in keeping the national food security firmly". This year, Liu Yonghao brought the proposal on taking multiple measures to save grain and improve efficiency and ensure the safety of grain and cultivated land, which made suggestions and suggestions for saving grain.
Liu Yonghao said that saving grain use from the production side has become the consensus of the grain industry. According to his estimation, if we promote the comprehensive utilization efficiency of feed by 1% every year through the three dimensions of optimizing breeding, feed formula and breeding, only New Hope Liuhe Co.Ltd(000876) one family can save grain equivalent to 770000 mu of cultivated land. For five consecutive years, about 1.5 million tons of grain can be saved, which is equivalent to saving more than 3 million mu of good farmland. This will make a great contribution to green development and land conservation.
"This not only indicates the future development trend of the feed breeding industry, but also reflects the key nodes and difficulties in the transformation and upgrading of the current agricultural industry chain." Liu Yonghao said that the comprehensive cost of feed has increased for five consecutive years, the profits of the industry have deteriorated, the cost of breeding industry has increased year by year, and the scissors gap between production cost and market price is becoming larger and larger. Breeding enterprises are not only facing difficulties in survival, but also multiple bottlenecks such as capital, talents, technical pressure and service capacity, which urgently need external support.
Liu Yonghao suggested in the proposal: first, relax policies, alleviate the short-term supply and demand balance of raw materials, and optimize the long-term strategic layout. Such as liberalizing the import restrictions of corn in South American countries, moderately increasing the trade quota scale of corn imported by private enterprises, and strengthening the strategic docking of imported grains outside the quota. The second is to give financial subsidies, incentives, credit support and other measures to encourage feed enterprises to achieve the goal of grain saving by continuously optimizing feed formula and breeding methods. Third, in the current situation of widespread losses of breeding enterprises, the state and relevant departments should introduce policies to increase financial support for self-developed grain saving breeding projects.
It is reported that New Hope Liuhe Co.Ltd(000876) group decided to launch the "special food saving" action in February this year, which is also an important action plan and goal of the whole group in the next five years.
