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Domestic large-scale hog groups release capacity, realizing stable growth in operating revenue

China Agriculture Report By CnAgri2017-05-31 13:46:58China Agriculture Report Print

Since the beginning of 2017, supply-side reform has been implementing in domestic hog industry, illegal farms and backward capacity have been removed and transferred under the environmental protection policy, new added capacity of large-scale enterprises has been releasing rapidly, and domestic pig supply has increased slightly. As for consumption, pork consumption tends to mature, the growth space for consumption is limited, and pork prices fell. In this week, pork prices drop to 14.26yuan/kg, down 31.64% year on year; the profit of feeding self-produced pigs is about 290yuan/head, down 70.24% year on year. Hog industry is in the downstream stage of this pig cycle, and the profit is expected to decline in the future.

In the context of declining industry prosperity, the scale advantage of large-scale pig breeding groups is prominent. The sales volume of hogs of Wens, Muyuan, Truein, Zhengbang and Tech-bank from January to April respectively reached 5.8225 million head, 1.641 million head, 752,900 head, 604,900 head and 274,000 head, increasing 6.08%, 142.09%, 19.64%, -27.99% and 181.60% year on year separately; the accumulative sales revenue of them from January to April respectively was 11.365 billion yuan, 2.596 billion yuan, 1.19 billion yuan, 1.065 billion yuan and 506 million yuan, increasing -2.17%, 104.09%, 11.01%, 10.28% and 127.93% year on year

BOABC believes that outstanding enterprises have realized snowball growth in profits by virtue of scale and cost control advantages in this round of long profit cycle, which provides solid financial foundation for next round of layout and then push industrial concentration up further.


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