Even at a loss, pig farming companies do not change their production expansion plans

The loss of the pig industry is of particular concern, and the sales data of listed pig companies in January are still not ideal
.
According to incomplete statistics from a reporter from China Business Daily, 12 listed pig companies sold a total of 5.

"Unable to sell"

Up to now, among the 12 pig companies that have released data, Wen's, New Hope, Zhengbang Technology, Dabeinong, and Tianbang have ranked the top five in terms of live pig production, of which New Hope has hit a record high of nearly 13 months.
A new high in sales
.

It is worth noting that although the slaughter volume is increasing, the sales revenue of listed pig companies is declining
.
Compared with the previous month, in January 2022, Jinxinnong's sales revenue fell by 61.

In terms of sales price, the situation of listed pig enterprises "selling more and losing more" is more obvious
.
The average selling price of live pigs of Wen's shares with the highest selling price is only 14.

Li Ming, a pig analyst at the Agricultural Products Division of Shanghai Ganglian, told a reporter from China Business Daily: "The Spring Festival will be from the end of January to the beginning of February in 2022, and the pig market over the years has seen a large decline in prices and prices after the Spring Festival
.
In order to pursue higher prices, In order to avoid the risk of price decline in February, pig companies will focus on slaughtering pigs in January, and put some of the pigs in February in January to avoid the risk of price declines in February

"Unable to sell at a high price" has become an industry consensus

still expanding

In the case of "unable to sell at a high price", pig companies have not changed their production expansion plans
.
Muyuan Co.

A relevant person in charge of a large-scale pig enterprise in Jiangxi admitted to a reporter from China Business Daily that most of the local large-scale breeding enterprises and retail investors in Jiangxi have not reached full production, and the capacity utilization rate is 20%-30%, and many are observing market changes
.
But the company has no plans to scale back production

While expanding production, they are waiting for unsustainable companies to exit.
The pig company that has the last laugh will be the winner in the next "pig cycle"
.
"The longest loss period in the industry in the past was more than 160 days, and this round of losses has also exceeded 100 days

"From the perspective of supply, the supply of live pigs will continue to increase in 2022.
In the short term, it depends on whether there is a large room for the weight and fattening of live pigs to decline, but a single decline does not mean the certainty of a market turning point.
Similarly, It is also not continuous.
On the premise that the slaughter volume is stable, the market may improve after August 2022.
If market speculation affects the stability of the slaughter, it may be postponed to 2023.

” Li Ming said
.

pay cuts

Lack of money may have become the main problem faced by pig companies that are "biting their teeth hard"
.
A relevant person in charge of a large-scale breeding enterprise in Sichuan told a reporter from China Business Daily that the capital chain problem encountered by the large-scale enterprise is more serious than before, and there is basically no way to get loans now
.
Funds from outside the industry are relatively small, and everyone feels the cruelty of the industry
.

The head pig enterprises also tightened their "belts"
.
Muyuan Co.
, Ltd.
announced a plan to reduce salaries.
Except for breeding technicians, the salaries of logistics and cadres have been reduced to varying degrees, with a maximum reduction of 40%
.
Muyuan Co.
, Ltd.
pays wages on the 15th of each month.
According to different positions, the actual salary of employees is reduced by 10%-50% compared with December
.
Tang Renshen also proposed an incentive assessment mechanism for its employees to "leave without increasing income"
.
In addition, in the financial report, the number of pig farming businesses of Tianbang Technology, Zhengbang Co.
, Ltd.
and other groups also dropped significantly
.

New Hope also stated at the investor relations event that the company will not invest in large-scale pig breeding farms for the time being and will not start new projects
.
Well-run areas may increase the number of producing sows
.
The number of pig industry personnel is around 30,000, and will not increase significantly in 2023.
After adjustment, the ratio of production-related personnel to non-production auxiliary personnel will reach 7:3
.
The production capacity is expected to reach 20 million in 2023, but there will be no significant increase in personnel
.