Why can't you make money when the price of beef and mutton goes up?

Near the end of the year, the price of beef and mutton finally improved. With the soaring price of live sheep, the price of mutton also began to increase nationwide. Although the price of live cattle did not rise sharply like the price of live sheep, it also recovered slightly. At the same time, the consumption increased rapidly, so the price of beef also increased.

The market environment is so, but there are still many practitioners to cattle and sheep Tiandi network reflect that they did not make money, this is exactly why, small editor and you talk about this topic.

Looking back on November, sheep prices rose in a straight line, cattle prices basically fluctuated mainly, echoing this is that beef and mutton prices both showed a small slow rise, price inversion phenomenon is more obvious. In this case, farmers did not sell to make money, slaughtering and processing did not make money, consumers also did not enjoy low prices.

What's the problem?

First of all, the economic people are more active throughout November, taking advantage of the lack of single channels and information blocking of farmers to buy and sell in the middle, especially Inner Mongolia experienced this year's drought and grass production greatly reduced, many herdsmen are eager to sell a large number of cattle and sheep, and the phenomenon of supply exceeding demand is obvious in many areas for a time, providing a basis for the economic people to buy at low prices;

Secondly, butchering and processing enterprises are impacted by imported and smuggled meat, and imported raw meat and live cattle and sheep further stimulate the market, so the slaughtering demand of butchering and processing enterprises for domestic cattle and sheep is further reduced, and the purchase price is correspondingly lower, but even so, the domestic beef and mutton price is still higher than that of imported similar products, so the purchase volume of butchering and processing enterprises as direct market leaders has a greater impact on cattle and sheep industry;

Thirdly, the catering industry has been in a state of depression in the past two years, corresponding to the improvement of ordinary consumers 'consumption consciousness. The cattle and sheep industry has not noticed and responded to such consumption changes, and still maintains the pattern of a few years ago.

Finally, meat dealers began to import beef and mutton products in order to pursue profit space. The choice of dealers affected the choice of slaughtering and processing enterprises to varying degrees, indirectly squeezing the overall profit space of the industry.

With this analysis, do you understand why you are not making money? So how do we respond?

The root cause of the current situation lies in the fact that the cattle and sheep industry is currently in a transitional period, requiring participants in every link of the industry to see clearly the future of the industry and then change their minds to cope with it:

1. Farmers need to increase information sources and expand sales channels;

2. Economic people need to release profit space appropriately and avoid excessively lowering prices;

3. Slaughtering and processing enterprises need to raise prices appropriately and earn profits through the added value of high-quality products;

Meat dealers need to adjust their sales strategies according to the changes in the consumer market, rather than simply pursuing low-cost products and profit margins.

The transformation of cattle and sheep industry is a relatively long-term process, which needs the reflection and response of every practitioner. Only in this way can we ensure that the cattle and sheep market can stand firm for a long time in the future.