Raising pigs fell below the cost line, with the biggest loss in three years.

The superposition resonance of the political cycle and the economic cycle is continuing to hit the pig industry. In an interview with the Securities Times, relevant research experts predicted that pig prices will continue to fall in the future, and this year's pig industry may have the most serious losses in the past three years, and China is likely to carry out multiple collection and storage regulation as in 2010.

Frozen pork collection and storage start

The pig market during the Spring Festival in 2014 is a little "cold". In the past, the Spring Festival was the peak demand season, but since mid-December 2013, pig prices have fallen rapidly. As of February 12, 2014, the average price of live pigs in the national market was 13.12 yuan per kilogram, and the price of pig grain fell to 5.51 ∶ 1, which has been below the break-even point of 6 ∶ 1 for 5 consecutive weeks.

Sou Pig data show that as of Feb. 8, the national pig feed price ratio was 3.69 ∶ 1, and the pig grain price ratio was 5.22 ∶ 1, down 23% and 18% respectively from the same period last year. The pig-to-grain ratio has been lower than the break-even line of 6 ∶ 1 for four consecutive weeks. At present, there is a loss of 212 yuan per head, compared with a profit of 90 yuan per head in the same period last year. Feng Yonghui, chief analyst at Souzhu, said that this was the first time in nearly a decade that pig farming fell below the cost line and fell into a deep loss during the peak demand season before the Spring Festival, and 2014 is expected to be the biggest loss in nearly three years.

According to the regulations of the Regulation and Control Plan for alleviating the cyclical fluctuation of Pig Market prices, the National Development and Reform Commission issued early warning information on January 26, advising pig farmers to appropriately adjust their breeding structure in accordance with market price changes to promote the balance between supply and demand.

Under the effect of market regulation, the recent decline in pig prices has slowed down, with the national average pig appearance price falling 1.1% in early February, 8 percentage points lower than in early January.

However, the National Development and Reform Commission said that from the current situation, pig production capacity is still on the high side, the next few months will be the off-season of consumption, pig prices are expected to run low, there is continued downward pressure.