Recently, with the support of the "agricultural insurance plan of Dachang Institute", Xinhu Futures Co., Ltd. (hereinafter referred to as "Xinhu futures") and Shanghai medium term futures and The Pacific Securities Co.Ltd(601099) property insurance jointly carried out the pig "insurance + futures" project, which was successfully compensated in Qinggang County, Heilongjiang Province. The service subject of the project is Zhixuan farm in Qinggang county. The project has insured 10000 pigs, with a total spot quantity of 1180 tons, a total insurance amount of 17.9065 million yuan and a total premium of 718000 yuan.
China is the world's largest pork producer and consumer market, and its pig stock and pork consumption account for half of the world; As the most valuable agricultural and sideline product in China, the market scale of live pigs exceeds trillion yuan. Under the condition that the fluctuation of "pig cycle" will exist for a long time, the game between supply and demand of pigs in China may become more intense in the future, and the seasonal fluctuation amplitude of pig price will also expand. It is of great significance and necessity for pig breeding entities to use pig futures and other financial derivatives for hedging.
Qinggang county is a large pig breeding County in Heilongjiang Province. Pig breeding is not only a local key pillar industry, but also one of the main sources of income for local farmers. However, in recent years, the pig market price fluctuates greatly. At the same time, due to the characteristics of pig sales following the market, the price fluctuation has brought great pressure to pig breeding producers and operators in Qinggang county.
In order to actively promote rural revitalization and alleviate the problems of farmers under the "pig cycle", the pig "insurance + futures" project was implemented in Qinggang County, Heilongjiang Province in 2021. Qinggang county was once a national poverty-stricken county, which was lifted out of poverty in February 2020. As a cross-border financial subject, the project helps Rural Revitalization and has received strong support from all parties involved. Among them, Dalian Commodity Exchange provides 69.94% premium support, and Xinhu futures and Shanghai medium term futures provide residual premium support. The joint cooperation between the exchange and financial institutions solved the problem of the source of premium, alleviated the premium pressure of the insured breeding subjects, and finally provided effective price guarantee for the breeding subjects under the falling pig price. The compensation was successfully realized at 51.36 yuan per ton, ensuring the breeding income of the breeding subjects.
Xinhu futures, The Pacific Securities Co.Ltd(601099) property insurance and Qinggang county government held a joint promotion exchange meeting on pig price insurance in April 2021. At the meeting, representatives of all parties discussed the promotion and publicity of the model from the actual situation of pig breeding in Qinggang county. Li Weisheng, deputy magistrate of Qinggang County, once said that the "insurance + futures" model is an innovative exploration of the integration of two financial instruments to help agriculture, which plays an important role and significance in improving the stability of farmers' production and operation and the level of stable production and supply of agricultural and livestock products in Qinggang county. Now, the smooth compensation of the project is a successful practice of the transformation of the local breeding industry. Qinggang county government also said that it will continue to support the exploration of the local characteristic pig breeding price insurance project.
The Pacific Securities Co.Ltd(601099) the person in charge of the agricultural insurance Department of property insurance Heilongjiang Branch said that this project is the first time to carry out a large commercial breeding price insurance project in Qinggang county. By actively connecting with local farmers and breeding enterprises, we continue to explore the mode of "insurance + futures", and finally form products that can be copied, easy to promote and close to the needs of the people, so as to fully protect the farmers' breeding income, Promote the steady increase of farmers' income.
The pig industry is not only related to the income of local farmers, but also related to the national economy and the people's livelihood. In the face of the impact of market price fluctuations, the introduction of insurance and futures financial instruments can not only help farmers stabilize their income, but also help farmers produce stably in the pig cycle, so as to further realize the stable production and supply of the pig industry.
