Home > News > CnAgri insight > Article

In the first half of 2018, egg prices rose sharply year-on-year, and corporate profits turned better.

China Agriculture Report By CnAgri2018-09-27 16:24:40China Agriculture Report Print Affected by environmental protection policy since the end of last year, layer farmers in raising-prohibited and raising-restricted areas have exited from the market, which resulted in a decline in layer inventory. From January to June 2018, China’s layer inventory remained at 800-900 million bird, which was significantly lower than that in the previous year. The ex-factory price of eggs in the first half of 2018 was 7.06 yuan/kg, up 2.19 yuan/kg over the same period of last year; the feeding benefit was 0.48 yuan/kg, compared with a loss of 1.01 yuan/kg in the same period last year. Due to the decrease in the supply of eggs and the rise in egg prices, the operating revenue and profits of layer raising enterprises and egg distribution companies have increased significantly. The operating revenue and profits of layer businesses listed on the National Equities Exchange and Quotations are shown in the table below.

From the perspective of the sizes of the enterprises, the businesses listed on the National Equities Exchange and Quotations are relatively small in scale. In the first half of 2018, only Sun Daily Farm’s operating revenue exceeded 400 million yuan, OVODAN and Jinlong respectively realized revenue of 250-300 million, and other enterprises achieved operating revenue of less than 200 million yuan separately.
Judging from the growth of revenue, layer enterprises are in the early stage of development and have great growth potential, especially, Jinlong Company has a large room for growth in operating revenue.
As for profits, the brand influence of layer enterprises is small, and the added value of products is low. Except that Jinlong in the early stage of investment suffered a loss, other enterprises are in a profitable state, but the net profits are not high.
In summary, China's egg enterprises are still in the early stage of development, and the scale of enterprises, brand influence, and channel construction need to be improved. Judging from the current industrial situation, the inventory of laying hens is at a low level in 2018. In the third quarter, the price of eggs has risen to the highest level since 2015. In the fourth quarter, the price will remain above the break-even point. 2018 is a year for the improvement in business performance of layer enterprises.
Explore Realted News »
Explore Realted Reports »