China’s Hog Industry and Investment Analysis Report（2017-2018）

Based on continuous accumulation of data, persistent tracking on industrial changes and in-depth researches for more than 20 years, BOABC will provide you with a valuable analysis report on investment and overall situation of hog industry and investment. In 2017, hog prices decline, but hog industry remains hot and will usher in its golden time. Environmental protection policy accelerates supply-side reform, and large groups speed up layout in hog industry. 1 Hog prices fluctuate down in 2017, the profit of the whole year is about 300 yuan less than last year, and industry prosperity is high. Hog prices declined to 13yuan/kg now from 18yuan/kg at the beginning of 2017 after high prices and high profit for more than one year. Farmers who purchase piglets for fattening suffered some losses intermittently. It’s predicted that hog prices will continue to decline in 2018, and or will rebound at the end of 2018. 2 For environmental protection, hog industry cuts down capacity and optimizes farming structure The year of 2017 is the deadline of closing or removing farms in breeding-prohibiting area. So far, about 213,000 livestock farms have been closed or removed nationwide, and hog capacity has decreased about 32 million head across the whole year. Except Sichuan and Hunan haven’t announced the accurate time of finishing removal and Guangxi will complete the removal at the end of 2018, other provinces and municipalities all will finish this job before the end of 2017. Optimization of hog farming structure: a large number of small farmers exit from the market, backward capacity is eliminated, hog industry realizes transformation and optimization, and the proportion of scale farming (with more than 50 sows on hand) has reached 58.55% in 2017. All these changes are good for the expansion of scale enterprises and the rapid development of regional leading enterprises, and will drive sound development of hog industry. 3 Hog supply is tightly balanced with demand, and imported pork makes an effective supplement for domestic market. Domestic pork consumption was stable relatively, and saw little change in 2017. Due to the removing of farms in farming-prohibited area in domestic, hog production capacity reduced to some extent, and pork supply was tightly balanced. The total annual pork imports were 1.22 million tons.The imports decreased somewhat compared with last year but still kept at a higher level historically. 4 There are increasingly integration opportunities in hog industry, large enterprises accelerate investments, and the concentration rate is rising slowly. Besides major hog farming groups such as Wens, Truein, Muyuan and others accelerate expansion in 2017, and many large-scale feed enterprises like New Hope, Zhengbang Group, Da Bei Nong, Wellhope Agri-Tech extended their industrial chain to farming and scramble to seize resources. The Groups release hog production capacity and realize sharp year-on-year growth in sales volume. Hog production of five enterprises including Wens, Muyuan, C.p group, Zhengbang and Truein was 36.71 million head in the 2017, up 31.23% year on year. Wens, Muyuan and C.p group respectively increased 11.18%, 132.34% and 50% year on year in terms of hog sales volume. The report will make in-depth research on the development trend of domestic hog industry and the operation models of major enterprises and conclude the investment trends of domestic enterprises and capital to assist enterprises, capital and insiders to grasp the moving tendency and investment opportunities and determine suitable development mode and resources needing integration.