MySheen

Who moved the "cheese" of the flour industry?

Published: 2024-11-08 Author: mysheen
Last Updated: 2024/11/08, In the current situation of strong wheat and weak face, small wheat bran affects the operating efficiency of wheat processing enterprises to a certain extent. Since the second half of last year, the price of wheat bran has continued to decline, which has made the already difficult flour processing enterprises even worse, and also affected this year.

In the current situation of "strong wheat and weak wheat", small wheat bran affects the operating efficiency of wheat processing enterprises to a certain extent. Wheat bran prices have continued to fall since the second half of last year, adding to the already difficult flour processing companies and affecting this year's summer grain purchases. Flour processing enterprises how to get out of the predicament, the reporter from wheat bran, pig breeding and other links to start in-depth research.

Flour and wheat bran are the two main profit growth points of wheat processing enterprises. in the current situation of "strong wheat and weak wheat", the price of wheat bran directly affects the operation of wheat processing enterprises. Since the beginning of this year, due to the low price of wheat bran, the profit margins of flour processing enterprises have further narrowed. Recently, pork prices have continued to rise, and the pig farming industry is expected to pick up, can it drive the price of wheat bran to rise, so as to lead flour enterprises out of their business difficulties?

Pork prices go up

Bran market is expected to pick up

At present, the supply of wheat bran is so large that it is difficult for prices to rise in the short term. In the long run, the warming of the aquaculture industry will help drive the price of wheat bran higher.

In July, the price of wheat bran went up and down, bringing a lot of uncertainty to the market. Shen Hongyuan, a senior analyst at Zhengzhou Grain Wholesale Market, believes that after the price downturn in May and June, wheat bran prices rose rapidly in July, jumping from about 0.55 yuan / jin at the end of June to 0.75 yuan / jin in mid-July. some areas even break through the high range of 0.8 yuan / jin. In order to expand the sales of wheat bran, many wheat processing enterprises have increased the operating rate and reduced the ex-factory price of flour to facilitate flour sales. The price of wheat bran stopped rising and stabilized in late July and fell into the range of 0.55 yuan to 0.6 yuan per jin at the end of July, while the ex-factory price of flour never recovered. At present, 30 flour hovers around 1.56 yuan per jin. The fluctuation of wheat bran price directly affects the operation of wheat processing enterprises. in July, the price of wheat bran fluctuated sharply, which increased the operational risk of the enterprise.

Since the second half of last year, the price of wheat bran has been falling, which has seriously squeezed the profits of processing enterprises, which is an important reason for the difficulties of flour processing enterprises. Although the main product of wheat processing enterprises is flour, and wheat bran is only a by-product, the price of wheat bran determines the profit level of the enterprise to a large extent in the case of long-term downturn of flour.

When the reporter went to Henan Jintiandi Noodle Co., Ltd. for an interview, a transport vehicle in the factory was carrying flour and wheat bran. Shi Aiyun, general manager of the company, told reporters that they are small processing enterprises producing stewed noodles with an annual processing capacity of about 70,000 tons. Their company is making a good profit in the face of a general recession in the industry. However, the price of wheat bran has fallen sharply since the second half of last year, and their company's monthly loss is as high as 400000 yuan.

Shi Aiyun believes that the import of a large number of alternative feed such as sorghum and barley is an important reason for the current decline in wheat bran prices. There is no quota for the import of miscellaneous grains such as sorghum and barley, which has a great impact on the bran market. According to statistics, from January to May this year, barley imports were 4.389 million tons, an increase of 1.1 times over the same period last year, and sorghum imports were 4.269 million tons, an increase of 2.0 times over the same period last year.

In fact, the oversupply is the root cause of the collapse in the price of wheat bran. On the one hand, the downstream pig farming has been in the doldrums, and the demand for wheat bran from feed factories and pig farmers continues to decline. On the other hand, the production capacity of wheat processing enterprises is increased, the supply of wheat bran is surplus, and the wet storage time of wheat bran is short, and the storage rate is low.

Hebei Wuxing Noodle Co., Ltd. is located in Gaocheng District, Shijiazhuang City, with a daily processing capacity of 300 tons. Yang Xinliang, general manager of the company, told reporters, "Pig prices rise, the breeding industry is expected to pick up, but the current wheat bran supply is large, it is difficult for prices to rise in the short term." However, in the long run, the warming of the aquaculture industry will help drive the price of wheat bran higher.

"the strong wheat and the weak wheat" continues.

Find ways to reduce costs

The situation of "strong wheat and weak wheat" will continue. The high price of wheat squeezes some flour processing enterprises out of breath.

In addition to Hebei, other major wheat producing areas have launched the purchase policy of supporting the market this year. This year, the state did not raise the minimum purchase price of wheat, which will create a good environment for wheat processing, inventory and circulation in China to a certain extent, but it has not changed the overall depressed situation of the flour processing industry.

Some business leaders said that the minimum purchase price has propped up the price of wheat, but the increase in the price of flour is lower than that of wheat, and the situation of "strong wheat and weak wheat" will continue. The high price of wheat has squeezed some flour processing enterprises out of breath. It is understood that at present, flour processing enterprises are generally difficult to operate, most enterprises choose to stop production or semi-stop production, and the operating rate of enterprises is less than 50%. Hebei Jindi Noodle Industry Co., Ltd. is located in Gaocheng District, Shijiazhuang City, Hebei Province, with an annual processing capacity of 100000 tons, with an actual processing capacity of less than 60, 000 tons and an operating rate of less than 60%. Wu Yongbin, general manager of the company, told reporters that affected by the falling price of wheat bran, the enterprise has difficulties in operation this year and is now in a state of capital preservation production, waiting for the market to improve.

 
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