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Operating status of listed companies in egg industry is poor, and industrial development mode needs to be innovated

China Agriculture Report By CnAgri2018-04-27 15:23:21China Agriculture Report Print Compared with hog and white broiler industries, layer industry is the industry with the lowest concentration and the lowest level of industrialization in animal husbandry industry in China. Since the operating status of listed companies in layer industry in 2017 was poor, there is an urgent need for transformation and upgrading of Chinese layer industry.
In 2017, Chinese layer industry experienced double tests of the H7N9 and the industry cycle. In the first half of the year, the price of eggs dropped to 4 yuan/kg, the lowest price in last ten years, and rebounded to more than 8 yuan/kg in September, 2017. Sharp price fluctuations is a severe challenge to the development of layer enterprises In 2017, the net profits of most layer-related companies listed on the New Three Board fell sharply, and some of them fell into losses.
Most layer companies’ net profits have fallen sharply. In 2017, Sun Daily Farm realized operating revenue of RMB 800 million, an increase of 9% year-on-year, and the net profit was only RMB 11 million, a year-on-year decrease of 76%. Xi'an Gerun Group, Anhui Rongda Poultry Co., Ltd., Ningxia Shunbao Agriculture and Hunan Jinjin Farming and Animal Husbandry Co., Ltd. and other companies are relatively small in size, the operating income of each company is less than 300 million yuan, and their market performance varied greatly.
Breeder companies suffered slight losses. During the period from 2012 to 2016, the sales of layer chicks of Xiaoming Agriculture and Animal Husbandry Co., Ltd. increased year by year, and the operating income and net profit increased steadily. Its profitability was higher in the industry, but its operating revenue in 2017 was 283 million yuan, decreasing by 4% year-on-year, and the net profit turned from profit to loss of 14 million yuan.
The net profits of processing companies saw relatively slight decrease. In 2017, Suzhou OVODAN Co., Ltd. realized an operating income of 506 million yuan, a year-on-year increase of 7%, and the net profit was 39 million yuan, a year-on-year decrease of 20%. The decrease of net profit was far below that of layer rearing enterprises.
The growth for layer consumption space is limited in China, and layer enterprises can only improve the industry concentration and industrialization level through internal competition and innovative development models.

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