Pig prices have been low for 9 consecutive weeks. Large-scale breeding enterprises have entered losses

Although the outbreak of bird flu has led to a rise in sales of fresh products, pig and pork prices remain low, and some large pig farmers are on the verge of losing money.

The price of live pigs in large and medium-sized cities across the country rose slightly by 0.3% between April 24 and May 1, when the weekly pig-to-food ratio was 5.27, below the generally recognized break-even point of 6.00 for the ninth consecutive week, the National Development and Reform Commission said in a statement yesterday. According to data released by the National Bureau of Statistics on May 6, the average price of pork in 50 cities across the country fell again from April 21 to 30, with the price of pork hip tip (hind leg meat) falling 0.9% month-on-month, and the price of belly meat down 0.8% month-on-month.

A senior executive of Shuanghui Group told China Business Daily yesterday that due to the fall in pork prices and the shift in consumer demand since bird flu, the company's sales of fresh products rose significantly in April. The tonnage of sales is basically the same as that of meat products. "before, we sold far more meat products than fresh products." The executive said. According to public information, in 2012, Shuanghui achieved sales of 23 billion yuan for meat products and 15.4 billion yuan for fresh and frozen products.

At the same time, the above executives also told reporters that the cost of Shuanghui is already at an all-time low. "the price of live pigs has gone down, and enterprises have made raw material reserves in time, which has reduced the cost of enterprises a lot. Therefore, this round of falling pork prices is actually a good thing for us. " The executive said.

Zhihua business data agriculture and animal husbandry industry analyst Yuan Song also told reporters that from the annual historical data, generally if pork prices fall this year, pork consumption will rise. At the same time, the fluctuation range of pork prices is far lower than that of live pigs, so although the price of live pigs is very low, pork products still have a certain profit margin.

"generally speaking, this round of decline in pig prices is a good thing for slaughtering and processing enterprises, especially for well-known processing enterprises, but it is bad for pig farming enterprises. From the perspective of the whole industrial chain, it shows a trend of polarization. " Yuan Song said.

In this regard, a senior official of Guangdong Wen's Food Group Co., Ltd. told reporters that at present, the price of live pigs in the company is between 6.2 yuan and 6.3 yuan per jin. "although the cost of large farming enterprises is much lower than that of ordinary farmers, but the price is also near the cost line." Another large domestic pig farming enterprise nestling Eagle farming (002477.SZ) related people also expressed the same concern to reporters.

"second-quarter results are expected to fall by 65% to about 95%." The nestling eagle agriculture and animal husbandry Dong Mi Wu Yi de said to the reporter. According to the first quarter report of 2013 released by Eagle Farm and Animal Husbandry not long ago, the company's net profit belonging to the parent company fell nearly 48.11% year-on-year to 54.39 million yuan.

Wu Yide told reporters that at present, the sales of piglets and breeding pigs of young eagles have not lost money, but due to the serious drop in pig prices, the pressure is transmitted to piglet sales, which may lead to a sharp decline in piglet sales in the second quarter. Piglets accounted for more than 70% of the 1.489 million pigs sold by the company last year.

"We have lengthened the industrial chain to avoid the risk of fluctuations in pork prices. In addition to pig farming, we now have slaughterhouses and cold storage. Once the price of pork falls seriously, the meat can be frozen, and the pork can be frozen for half a year before being sold when the price picks up. " The above person in charge of agriculture and animal husbandry of the baby eagle said.

"the cycle of the pig industry is very strong, and mature foreign enterprises have done very well in risk control and risk hedging, but the risk aversion of domestic enterprises is still not in place," analysts said. "on the one hand, this is because there are no perfect products for enterprises to choose from, on the other hand, it is also related to the thinking of enterprise managers. The head of a leading domestic aquaculture enterprise once said, "We have no risk hedging. If the pig price falls, we will resist it."