Pig price forecast: will pig prices rise in 2017?
The three-year weekly price cycle is an extraordinary year for 2016. at the beginning of the year, the prices of young pigs and fattening pigs soared, but they began to decline in the second half of the year, coupled with the introduction of environmental protection, which put a lot of pressure on pig farmers. in the face of such ups and downs in pig prices, will pig prices rise in 2017?
The author shares with you why pig prices rose at the beginning of the year and continued to fall in the second half of the year.
1. excess production capacity
Pig prices continued to rise in the first half of the year, so people huddled into the pig industry, because most of them were full feed, so they were fenced in 3-4 months, which happened to be the time of fencing in the second half of the year, resulting in a large amount of slaughterhouses at once. so the slaughterhouse began to lower the price of live pigs, coupled with the continuous increase of imported pork, so it is normal when the price of any product exceeds demand.
two。 Pig farmers are anxious to sell
Because the supply exceeds the demand, the slaughterhouse has the risk of price reduction, and pigs do not come out of the column when it is time to go out, because there is a cycle for pig growth, the feed cost is not proportional to the ratio of feed to meat, and there is concern that the slaughterhouse will continue to depress the price. so we can only bear the pain and sell, so we can just get into the slaughterhouse.
3. The price of corn fell
Corn is the main raw material of pig feed. The price of corn has fallen due to various reasons this year, and the cost of raising pigs has dropped somewhat. Because there are too many pig farmers, many people see slaughterhouses lower prices, so they sell at low prices. So the fall in corn prices is also a reason for the decline in pig prices.
Let's see if pig prices will rise in 2017.
1. In the face of the decline in pig prices this year, many farmers have lost money and will withdraw from the pig industry.
two。 Environmental protection has been introduced this year, and many small and medium-sized farmers have been closed.
Judging from the above two points, it may lead to a shortage of pigs next year, but the most gratifying farm creates the experience of raising pigs in the world. Although there is such a small number of pigs, we should not be too optimistic. There is also imported pork. If there is a real shortage of domestic demand, we may consider importing pork to fill this gap. So, friends who want to continue to raise pigs in 2017 should first do a good job in marketing and other work. Don't face this year's situation when it's time for pigs to get out of the fence.
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