Pig prices hit a 19-month low!

 　　What is the concept of 23.
21 yuan/kg?Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Calculated at a cost of 15 yuan, the profit per kilogram of pigs in Muyuan has narrowed to 8.
2 yuan, and at the high point in July 2020, the company's gross profit per kilogram had reached 20.
2 yuan.
.
.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　On the evening of April 6, Muyuan disclosed its operating data for March.
The average sales price of the company's live pigs has fallen to 23.
21 yuan/kg during the current period, setting a new low since pig prices rose in 2019.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　This round of pig cycle started in June 2019, when the industry began to cross the break-even point, and began to jump continuously in 2019, which in turn led to the continuous improvement of the profitability of listed pig companies.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Today, the average sales price of Muyuan shares of 23.
21 yuan/kg has also fallen to the previous level of pig prices, which is only slightly higher than the price of 20.
27 yuan/kg in August 2019, setting a new low for 19 consecutive months since then.
.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Due to the relatively limited space for cost reduction, the continuous decline in pig prices in the first quarter will also lead to a decline in the company's overall profit margin.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The good news is that the “heavy volume” trend of Muyuan shares remained unchanged in March this year.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　During the current period, the monthly sales of live pigs reached 2.
83 million, the highest level since the current cycle.
This enabled the company's revenue in the first quarter to maintain a significant growth trend compared with the same period in 2020.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　"Compensation by volume" is also a common measure adopted by current leading pig companies.
This is true for New Hope and Zhengbang Technology from January to February this year.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Among them, New Hope’s total live pig sales in 2020 will be 8,292,500.
The company’s 2021 target given by the company’s previous survey was the “internal assessment target of 25 million heads”, which means that the planned slaughter will increase by 201% year-on-year.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　On the other hand, Muyuan shares, although no clear sales target has been given so far, the sales of live pigs in the first quarter of this year have increased steadily.
The sales growth rate from January to February ranked first among the top four leading pig companies in A-shares.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　As of the end of March this year, the company's cumulative sales of live pigs had reached 7.
72 million heads, compared with 2.
564 million heads in the same period last year, an increase of more than 200% year-on-year.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　As for the implementation effect of the above countermeasures, it needs to be determined based on the price of live pigs during the year and the 2020 annual report of Muyuan Co.
, Ltd.
to be disclosed.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　At that time, the company's annual report or the 2021 business plan will give specific figures for the annual target.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　The price of live pigs is not optimistic.
According to the characteristics of quarterly consumption, the second quarter of each year is the off-season for terminal consumption, and the pressure of further decline in live pig prices is obvious.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　Zhuo Chuang Information also pointed out that the repeated epidemics may cause phased production capacity damage in some areas.
However, due to the current increase in the scale of breeding, the improvement of prevention and control capabilities, the development of normalization of the epidemic, and the enhancement of reserve supply capabilities, live pigs The speed of capacity recovery may be affected in the short term, but the overall pace of resumption of production is still moving forward.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry

　　As the industry's supply and demand are gradually shifting from tension to equilibrium, the pressure of further decline in live pig prices still exists.
At that time, Muyuan shares will only have a gross profit of 8 yuan/kg, which is facing the risk of further compression.
Yus China Feed Industry Information Network-Based on feed, serving animal husbandry