China livestock industry weekly report 20160829:Market potential of PVC2 vaccine is huge, reaching 3.5 billion yuan

By CnAgri 2016-08-30 14:24:24 Print Tel:861064402035 Email: [email protected]

Price: RMB 20000(English Version) RMB 10000(Chinese Version)

Brief Introduction:

Market potential of PVC2 vaccine is huge, reaching 3.5 billion yuan

Basic Information:

Table of Contents:

BOABC Viewpoint: Market potential of PVC2 vaccine is huge, reaching 3.5 billion yuan 1
1 Profit Monitoring on Livestock Breeding Industry Chain in August 1
1.1 Hog price was 18.52 yuan per kg, decreased from last week. 1
1.2 Chick price got up, while broiler price went down, the profit of raising white feather broiler declined. 1
1.3 The farmgate price of fresh eggs increased continuously, the profit of breeding link gained while the wholesale link got loss. 1
1.4 The profits of all links in beef cattle industry are relatively well. 1
1.5 The wholesale prices of mutton see little change and the breeding link continue losing money. 1
2 Market Analysis and Forecast 1
2.1 Market potential of PVC2 vaccine is great in domestic, and competition among large enterprises is fierce. 1
2.2 China continues to implement anti-subsidy and anti-dumping measure on American broiler products, the import volume from the US maintains low level continuously 1
2.3 Sales revenue of XIAO MING NONG MU increased15.45% in the first half of 2016, it will see good development 1
3 Market News 1
3.1 PVC2 vaccine of JINHE BIOTECHNOLOGY appears on the market with price of 16.8yuan/dose 1
3.2 Operating revenue and net profit of Wens respectively were 28.359 billion yuan and 7.226 billion yuan in the first half of 2016 1
3.3 Gross profit of broiler business of WENS dropped by 2.92% in the first half of 2016 1
3.4 HUA YU Agricultural Science and Technology signed cooperation agreement with CP Group, first batch of chicks have entered CP’s farm 1
4 Animal By-products Import and Export Analysis in July 1
4.1 Pig 1
4.1.1 The accumulative import volume of breeding pigs from Jan. to July increased by 169.75% year on year. 1
4.1.2 The accumulative import volume of fresh frozen from Jan. to July increased by 149.42% year on year. 1
4.2 Cattle 1
4.2.1 The import volume of breeding cattles decreased by 20.95% from Jan. to July year on year. 1
4.2.2 The import volume of fresh chilled beef was 501.80 tons in July, down by 23.21% year on year. 1
4.2.3 The import volume of frozen beef was 51.7 thousand tons, up by 12.04% year on year. 1
4.3 Sheep 1
4.3.1 The accumulated import volume of mutton was 160.5 thousand tons from January to July, up by 9.19% year on year. 1
4.3.2 The mutton mainly was imported from New Zealand and Australia. 1
4.4 Poultry 1
4.4.1 The accumulative import volume of breeding hens from Jan. to July decreased by 23.5% year on year. 1
4.4.2 Imported chicken was mostly imported from Brazil. 1
4.4.3 China exported chicken 17.97% less than last year in July 1
4.4.4 Hongkong is the main exporting destination of chicken. 1
4.5 Eggs 1
4.5.1 The accumulated export volume of eggs in July were 46.5 thousand tons, increasing 14.72% year on year. 1
4.5.2 Hongkong is the main exporting destination of fresh eggs. 1
5 Attached Tables 1
Table 1, Weekly Purchase Price of Hog in Major Provinces of China 1
Table 2, Weekly Average Price of Sow, Hog, Piglet and Pork in China 1
Table 3, Weekly Average Price of Beef Products in China 1
Table 4, Weekly Average Price of Mutton Products in China 1
Table 5, Weekly Price of Broiler Chick in Major Provinces of China 1
Table 6, Weekly Factory Price of Broiler With Feather in Major Provinces of China 1
Table 7, Weekly Average Price of Chicken Products in China 1
Table 8, Weekly Farmgate Price of Egg in Major Provinces of China 1
Table 9, Weekly Price of Culled Layer in Major Provinces of China 1
Table 10, Weekly Benefit on the Value Chain of Hog in China 1
Table 11, Weekly Benefit on the Value Chain of Broiler in China 1
Table 12, Weekly Benefit on the Value Chain of Layer in China 1
Table 13, Weekly Benefit on the Value Chain of Beef Cattle in China 1
Table 14, Weekly Benefit on the Value Chain of Mutton in China 1
Table 15, China Chicken and Giblet Imports, in July 2016 1
Table 16, China Chicken and Giblet Exports, in July 2016 1
6 Attached Figures 1
Figure 1, Weekly Average Price of Sow in China 1
Figure 2, Weekly Average Price of Piglet in China 1
Figure 3, Weekly Average Price of Hog in China 1
Figure 4, Weekly Price of Broiler Chick in China 1
Figure 5, The Factory Price of Broiler With Feather in China 1
Figure 6, China Weekly Wholesale Prices of Chicken Meat in 36 Large Cities, 2014-2016 1
Figure 7, Weekly Farmgate Price of Egg in Major Provinces of China 1
Figure 8, China Weekly Wholesale Prices of Beef in 36 Large Cities, 2014-2016 1
Figure 9, China Weekly Wholesale Prices of Mutton in 36 Large Cities, 2014-2016 1
Figure 10, China Fresh Frozen Pork Imports by Country of Origin from 2014 to 2016 1
Figure 11, China Frozen Beef Imports by Country of Origin from 2014 to 2016 1
Figure 12, China Mutton Imports by Country of Origin from 2014 to 2016 1



BOABC Viewpoint: Market potential of PVC2 vaccine is huge, reaching 3.5 billion yuan
 
According to statistical data of BOABC, sales value and sales volume of domestic PVC2 vaccine manufacturers respectively reached 1.118 billion yuan and 215 million doses in 2015, and the market penetration rate was about 27%. 
The penetration rate of domestic PVC2 vaccine will rise further in next five to ten years, the reasons are as follows:
1) China’s pigs face great pressure of being infected with PVC2 which will become basic immune diseases. Above data show that PVC2 happens in many pig farms, China’s pig groups generally are infected with PVC2, it seriously damages pig farms.
2) Transformation and upgrading of China’s pig industry, standardization of immune procedure and increase of vaccine cost will expand the market scale of PVC2 vaccine.
In terms of current hog breeding scale in domestic, theoretical space of PVC2 vaccine is about 3.5 billion yuan, but the actual scale only is 1.1 billion yuan, huge potential means that PVC2 vaccine still is a favourite of the market in the future. But the market share of top 10 enterprises has reached 81.8%. 
How to occupy market share in fierce market competition among over 20 manufacturers in the future, domestic enterprises still need make great effort, but BOABC thinks high cost-effective product and service are the key of improving market competitiveness.
Figure China PVC2 Vaccine Market Situation, 2015
 
Data source: BOABC
 
1 Profit Monitoring on Livestock Breeding Industry Chain in August
1.1 Hog price was 18.52 yuan per kg, decreased from last week. 
 (1) On August 26, 2016, the average wholesale price of pig carcass in 36 large and medium-sized cities was 25.16 RMB/kg, down by 0.12% from last week. In this week, the price of hog is 18.52 RMB/kg, down by 0.54% from last week. 
Figure 1, China Weekly Wholesale Prices of Pork Side in 36 Large Cities, 2014-2016
 
Source: BOABC database
(2) During the past week, ratio between hog price and feed price was 6.21 and ratio between hog price and corn price was 9.60. 
 
The profit of each link of China’s Hog breeding industry in last week was as follows: 
 
Breeding link: the gross profit of hogs from self-raising-piglet was703.29 RMB/Head, 16.54 RMB/Head less than last week; and gross profit of hogs from others-raising-piglet was 275.24 RMB/Head, 12.07 RMB/Head less than last week.
Slaughter link: the gross profit of slaughtering enterprises, the ones on slaughtering bought hogs but not as agents, was 98.14 RMB/Head, 6.38 RMB/Head more than last week.
Wholesale link of pork: the gross profit was 56.98 RMB/Head, 2.31 RMB/Head more than last week.
Retail link of pork: the gross profit was about RMB 350.35 RMB/ Head, 2.31 RMB/Head more than last week.
 
 
Figure 2, Profit on Hog Breeding Industry Chain
 
Source: BOABC database
1.2 Chick price got up, while broiler price went down, the profit of raising white feather broiler declined. 
On August 26, 2016, the factory price of broiler with feather was 8.12 RMB/KG, down by 0.55% than last week; chick price was 3.49 RMB/bird, up by 6.33% from last week. In the major broiler wholesale markets of the 36 medium-and-large sized cities, the average price of fresh chicken meat is 14.90 RMB/kg, up by 0.61% from last week. 
 
During the past week, ratio between broiler chicken price and grain price was 3.90 and ratio between broiler chicken price and feed price was 2.58. The profit of each link of China’s broiler breeding industry was as follows:
 
Broiler chicken breeding link: the gross profit was about 0.49 RMB/bird, 0.37 RMB/kg less than last week.
Broiler chicken slaughtering link: the gross profit was about 1.00 RMB/kg, up 0.17 RMB/kg from last week.
White chicken meat wholesale link: the gross profit was about 2.47 RMB/KG, up 0.02 RMB/KG from last week.
White chicken meat retail: the gross profit was about 3.84 RMB/KG, down 0.09 RMB/KG from last week.
 
 
Figure 3, Profit on Broiler Breeding Industry Chain
 
Source: BOABC database
1.3 The farmgate price of fresh eggs increased continuously, the profit of breeding link gained while the wholesale link got loss.
On August 26, 2016, the farmgate price of eggs was 7.88 RMB/kg, up by 10.91% than last week; at the major egg wholesale markets of the 36 medium-and-large sized cities, the average price of fresh eggs was 7.69 RMB/kg, up 5.90% from last week. During the past week, ratio between egg price and corn price was 4.14 and ratio between egg price and feed price was 3.14. 
 
The profit of each link of China’s layer breeding industry in last week was as follows:
 
Layer breeding link, the gross profit of egg was about 1.84 RMB/kg, up 0.80 RMB/kg from last week.
Egg wholesale link, the gross profit was about -0.49 RMB/kg, down 0.35 RMB/kg from last week.
Egg retail link, the gross profit was about 0.91 RMB/kg, 0.03 RMB/kg less than last week.
 
Figure 4, Profit on Layer Breeding Industry Chain
 
Source: BOABC database
1.4 The profits of all links in beef cattle industry are relatively well.
On August 26, 2016, in the beef wholesale markets of the 36 medium-and-large sized cities, the average price of fresh boning-out leg meat was 53.01 RMB /kg, up by 0.36% compared with last week.
 
The profit of each link of China’s beef breeding industry in last week was as follows:
 
Beef cattle breeding: the gross profit was about 370.74 RMB/Head, down 14.31 RMB/Head from last week.
Beef cattle slaughter link: the gross profit was about 578.09 RMB/Head, up 137.69 RMB/Head from last week. 
Beef wholesale link: the gross profit was about 791.14 RMB/Head, up 9.25 RMB/Head from last week. 
Beef retail link: the gross profit was about 1,515.02 RMB/Head, down 112.12 RMB/Head from last week.
 
 
 
Figure 5, Profit on Beef Cattle Breeding Industry Chain
 
Source: BOABC database
1.5 The wholesale prices of mutton see little change and the breeding link continue losing money.
On August 26, 2016, the average price of bone-in fresh mutton in mutton wholesale markets of 36 medium-and-large sized cities was RMB 44.88 RMB/KG, up by 2.70% from last week.
 
The profit of each link of China’s mutton breeding industry in last week was as follows:
 
Mutton sheep breeding link: the gross profit was about -103.64 RMB/head, up 4.30 RMB/Head from last week.
Mutton sheep slaughter link: the gross profit was about 35.78 RMB/Head, up 3.71 RMB/Head from last week.
Mutton wholesale link: the gross profit was about 51.78 RMB/Head, up 1.76 RMB/Head from last week.
Mutton retail link: the gross profit was about 312.91 RMB/Head, down 11.25 RMB/Head from last week.
 
 
Figure 6, Profit on Mutton Breeding Industry Chain
 
Source: BOABC database
 
2 Market Analysis and Forecast
2.1 Market potential of PVC2 vaccine is great in domestic, and competition among large enterprises is fierce.  
On August 23, JINHE BIOTECHNOLOGY CO., LTD. held PVC2 (ZJ/C strain) new product release conference in Hohhot, Inner Mongolia, and this product is its first new product since it involved in animal vaccine field, and the market price of this product is 16.8yuan/dose. It’s also the second PVC2 product marketed in this year after JINYU launched GMO PVC2 (CP08 strain) in the first half of this year. So far, there are 23 PVC2 vaccine manufacturers in domestic, number of new added manufacturers of PVC2 is the largest among various swine vaccines in past five years, and market competition is very intense. 
Why large enterprises so favor PVC2 vaccine and successively launched new products?
BOABC analyzes that theoretical space of PVC2 vaccine is about 3.5 billion yuan according to current hog breeding scale in domestic, however the sales value and sales volume of domestic PVC2 vaccine manufacturers respectively were 1.118 billion yuan and 215 million doses in 2015, the market penetration rate only was 27%. PVC2 vaccine still has great market potential in domestic. 
But it should point out that the market share of top 10 enterprises has reached 81.8%. How to occupy market share in fierce market competition among over 20 manufacturers in the future, domestic enterprises still need make great effort, but BOABC thinks high cost-effective product and service are the key of improving market competitiveness.
Figure China PVC2 Vaccine Market Situation, 2015
 
2.2 China continues to implement anti-subsidy and anti-dumping measure on American broiler products, the import volume from the US maintains low level continuously
China implemented anti-subsidy and anti-dumping measure on American white feather broiler products from August, 2010 to August, 2015, after this measure became due, the Ministry of Commerce filed review on anti-subsidy measure and anti-dumping measure respectively in August and October, 2015. 
Recently, the Ministry of Commerce announces the result of review on anti-subsidy measure, China will continue to levy anti-subsidy duty on imported products of white feather broiler born in the US since August 30, 2016 with time limit of five years, and the anti-subsidy duty rate changes among 4%-4.2% for different American enterprises. 
Anti-dumping review will be closed before September 26, if anti-dumping measure will be implemented continuously with unchanged tax rate which is 46.6%-73.8%, the price of importing American white feather broiler products will be twice of their dutiable value, which makes American poultry by-product hasn’t price advantage. 
China’s import volume of American white feather broiler products only was 29,200 tons in 2015, decreasing 84% from 2014, only accounting for 7.41% of China’s total import volume of chicken products. 
It’s predicted that China’s import volume of American white feather broiler products will maintain low. 
Figure China’s Import Volume of American Chicken Products and Proportion Change
 
Date source: China Customs
2.3 Sales revenue of XIAO MING NONG MU increased15.45% in the first half of 2016, it will see good development
Semi-annual report of XIAO MING NONG MU in 2016 is published, sales revenue, operating profit of net profit of the company respectively were 148 million yuan, 39.4489 million yuan and 40.6509 million yuan in the first half of 2016, increasing 15.45%, 119.54% and 84.50% year on year separately. 
Main reasons for performance growth of the company are as follows:
First, the fifth farm (Qingwu District) of layer breeder breeding base in Qingtongxia has been built and gone into operation, this farm can breed 120,000 sets parental layers, increases a capacity of over 10 million commercial layer chicks for selling, which directly drives the sales scale up. 
Second, the demand for restocking layer is great in domestic in the first half of 2016, layer chick price moved up continuously and increased to 3.59yuan/bird in the middle of the year from 3.09yuan/bird at the beginning of this year, the average price was 3.35yuan/bird in the first half of 2016, increased 6.48% from the year before, and drove sales revenue up greatly. 
Third, prices of feed raw materials such as corn and soymeal declined, the breeding cost reduced. The price of layer compound feed was 2.52yuan/kg in the first half of 2016, dropping by 14.60% year on year. 
BOABC analyzes that XIAO MING NONG MU will continue to deepen cooperation with Hy-Line International through Spain to stabilize source of breeding birds in 2016. At the same time, the company introduced strategy capital from Da Bei Nong, which lays capital foundation for the extension of Qingqi District and Qingba District and the construction and operation of young chicken farm in Lankao, paves the way for extending industrial chain business. If no serious disease and great market risk appear, XIAO MING NONG MU will see good development.
Table Business Performance of XIAO MING NONG MU in the First Half of 2016
Unit: Yuan
Operating Index 2016(Jan.-Jun.) 2015(Jan.-Jun.) Year-on-year 
Operating Revenue 147,667,591.76 127,904,604.46 15.45%
Operating Profit 39,448,854.76 17,968,476.97 119.54%
Net Profit 40,589,850.20 22,032,665.69 84.23%
Net Profit Ratio 27.49% 17.23% 59.57%
Data source: Semi-annual report of XIAO MING NONG MU
3 Market News
3.1 PVC2 vaccine of JINHE BIOTECHNOLOGY appears on the market with price of 16.8yuan/dose
On August 23, JINHE BIOTECHNOLOGY CO., LTD. held PVC2 vaccine new product release conference in Hohhot, Inner Mongolia, the market price of this product is 16.8yuan/dose, and this product is the first animal vaccine product of the company. 
3.2 Operating revenue and net profit of Wens respectively were 28.359 billion yuan and 7.226 billion yuan in the first half of 2016
On August 25, Wens announced semi-annual report, the operating revenue and net profit of the Group respectively were 28.359 billion yuan and 7.226 billion yuan in the first half of 2016, increasing 39.95% and 330.12% year on year separately. 
As for breeding sector of the Group, the sales volume of commercial broiler, commercial hog and meat duck respectively was 364 million birds, 8.0489 million head and 11.5886 million birds. 
3.3 Gross profit of broiler business of WENS dropped by 2.92% in the first half of 2016
In the first half of 2016, WENS marketed 364 million broilers, increasing 10.33% year on year. The operating revenue and operating costs of chicken business respectively were 8.437 billion yuan and 7.403 billion yuan, increasing 5.20% and 8.82% year on year separately. Gross profit of chicken business was 12.26% and dropped by 2.92% year on year in the first half of 2016. 
3.4 HUA YU Agricultural Science and Technology signed cooperation agreement with CP Group, first batch of chicks have entered CP’s farm
HUA YU Agricultural Science and Technology signed agreement of 320,000 layer chicks with CP Group, first batch of chicks (80,000 birds) have entered CP’s layer breeding demonstration farm in Xiaojialai village of Inner Mongolia on August 22, and rest chicks all will arrive at the farm in next two weeks
 



If you need to see the whole content of the weekly report , please feel free to contact with me  
Email :  [email protected]  
Tel :86-10-64403015
I can send you some sample reports to you .
 
 
Explore Realted News »
Explore Realted Reports »