With the listed pig enterprises successively disclosing the pig sales data in March, new changes have taken place in the internal structure of the industry.
Among them, “Zhumao” Muyuan Foods Co.Ltd(002714) sold 13.817 million pigs in the first quarter, far exceeding the 4.02 million and 3.7 million pigs of Wens Foodstuff Group Co.Ltd(300498) , New Hope Liuhe Co.Ltd(000876) and supporting half of the industry’s production capacity on its own.
However, in the face of the continuous decline of the average selling price of pigs, many listed pig enterprises have also fallen into the situation of “selling more and losing more”. Insiders said that the current breeding cost is still high, and the industry as a whole is in the stage of moderate loss.
It is worth mentioning that the national development and Reform Commission and relevant parties have “shot” and will carry out the collection and storage of the fourth batch of central frozen pork reserves during the year. It is planned to collect and store another 40000 tons of frozen pork in the near future.
head pig enterprises accelerated their marketing in the first quarter
From the pig sales data disclosed by listed pig enterprises, the number of pigs sold by many enterprises increased significantly in March.
Taking Muyuan Foods Co.Ltd(002714) as an example, it sold 5.986 million pigs in March (including 527000 piglets), a record high, with a year-on-year increase of 111.3%; The sales revenue of live pigs was 7.43 billion yuan, a year-on-year increase of 5.3%.
Wens Foodstuff Group Co.Ltd(300498) 3 sold 1448400 pigs (including hairy pigs and fresh products), up 35.49% month on month and 143.63% year on year; The sales revenue was 2.106 billion yuan, with a month on month increase of 33.71% and a year-on-year increase of 14.33%.
New Hope Liuhe Co.Ltd(000876) 3 month sold 1426900 pigs, up 46.00% month on month and 67.10% year on year; The sales revenue was 1.694 billion yuan, an increase of 53.58% month on month and a year-on-year decrease of 22.33%.
In addition, Jiangxi Zhengbang Technology Co.Ltd(002157) , Tech-Bank Food Co.Ltd(002124) , Shenzhen Kingsino Technology Co.Ltd(002548) , Fujian Aonong Biological Technology Group Incorporation Limited(603363) and other enterprises achieved growth in pig sales in March, of which Jiangxi Zhengbang Technology Co.Ltd(002157) sold 967200 pigs, an increase of 93.36% month on month Shenzhen Kingsino Technology Co.Ltd(002548) pig sales totaled 197700, up 192.77% month on month.
Further statistics show that in the first quarter of this year, Muyuan Foods Co.Ltd(002714) has exceeded 10 million, reaching 13.817 million, exceeding the sum of Wens Foodstuff Group Co.Ltd(300498) , New Hope Liuhe Co.Ltd(000876) , Jiangxi Zhengbang Technology Co.Ltd(002157) , Tech-Bank Food Co.Ltd(002124) , Fujian Aonong Biological Technology Group Incorporation Limited(603363) , etc.
For the reasons for the large increase in slaughter volume, New Hope Liuhe Co.Ltd(000876) disclosed that it was mainly due to the normal release of production capacity and the increase of piglet delivery Wens Foodstuff Group Co.Ltd(300498) said that the year-on-year increase in pig sales was mainly due to the increase in seedling investment and production performance of the company.
industry as a whole is in the stage of moderate loss
Corresponding to the large increase in slaughter volume is the continuous decline of the average selling price of pigs.
According to the data of China pig breeding network, the price of live pigs (external three yuan) fell to 11.78 yuan / kg in March from 12.72 yuan / kg at the beginning of the month, a decrease of more than 7%. Although the price changed from down to up in late March, it is still significantly lower than that at the beginning of this year.
Muyuan Foods Co.Ltd(002714) disclosed data show that the average selling price of commercial pigs in March was 11.67 yuan / kg, down 5.74% from January to February 2022 Wens Foodstuff Group Co.Ltd(300498) 3 in March, the average selling price of pigs was 12.17 yuan / kg, down 3.03% month on month and 53.55% year on year.
It is worth noting that Muyuan Foods Co.Ltd(002714) once disclosed that the complete cost of pig breeding from January to February was about 16 yuan / kg. This also means that Muyuan Foods Co.Ltd(002714) is facing losses while setting a sales record.
“In the context of rising feed costs and low pig prices, listed pig enterprises have fallen into the situation of ‘selling more and losing more’.” Some insiders said that even so, many enterprises would rather lose money than maintain market share. That is, they recognize that this round of pig cycle will eliminate a large number of competitors and can use money to hit a larger market share.
Zhu zengyong, a researcher at the Beijing Institute of animal husbandry and Veterinary Sciences of the Chinese Academy of Agricultural Sciences, predicts that the oversupply of commercial pigs is expected to ease in the third quarter of this year, the supply and demand of pork will shift to a basic balance, and the price of pigs is expected to rise seasonally.
state’s fourth “sales” collection and storage in the year
In the context of losses in the pig breeding industry, relevant departments have “shot” to rescue the market.
On April 8, the national development and Reform Commission announced that the price ratio of pig to grain has been continuously lower than 5:1 recently, which is in the level-1 early warning range of excessive decline determined in the plan for improving the regulation mechanism of government pork reserves and ensuring supply and price stability in the pork market. In this regard, the development and Reform Commission and relevant parties will carry out the collection and storage of the fourth batch of central frozen pork reserves during the year, and it is planned to collect and store another 40000 tons of frozen pork in the near future.
It is worth noting that on March 31, a week ago, the national development and Reform Commission had notified to carry out the collection and storage of the third batch of central frozen pork reserves during the year, and it is planned to collect and store 40000 tons of frozen pork on April 2 and 3.
At the same time, all localities have also actively started the collection and storage work. For example, the Sichuan Provincial Development and Reform Commission recently announced that on the basis of early collection and storage, it will start the collection and storage of 1500 tons of provincial government frozen pork temporary reserve, form a joint force with the state to “support the market” and promote the return of pig and pork prices to a reasonable range; Gansu Province started the temporary collection and storage of pork, and arranged a total of 1000 tons.
In response to the “rescue” of many places, Wei Xin, senior analyst of China Securities Co.Ltd(601066) futures pig industry, said that the continuous collection and storage of frozen pork has boosted market confidence to a certain extent. However, due to the small scale of the amount of frozen meat collected and stored relative to the amount of pigs sold, the role of supply diversion is limited. The opening of the fourth round of collection and storage work within the year also shows that the loss time of this round of pig production has reached a certain length, which will inevitably lead to a certain degree of capacity decentralization.
