Pig raising may still be difficult to make money how to break the situation in the second half of the year

With rising costs and falling pig prices, how can big pig farmers get out of losses in the second half of the year? It is worth noting that, judging from the current production capacity of major pig companies, there is still a gap between the completion of the slaughter target

Can the price of live pigs that are frequently bottoming out come back?

In the first half of the year, the price of live pigs frequently bottomed out, leading to shrinking profits of major pig companies

The current price of live pigs has fallen below the breeding cost line of major pig companies

Gao Yang, a pig analyst at the Agricultural Products Division of Shanghai Iron and Steel Union, told a reporter from China Business Daily: "According to the survey, the pessimism among industry insiders is generally strong throughout the first half of the year.

The industry believes that in the second half of the year, the highest price of live pigs may not exceed 20 yuan/kg

In the second half of the year, the major pig companies have arduous tasks

"Volume increase and price reduction" and "quantity and price double reduction" make major pig companies worry

For major pig companies, lower average sales prices mean that pig farming profits have shrunk

Although pig farming has made a loss, the sales of major pig companies in the first half of the year are far from reaching the target, and the task in the second half of the year is still arduous

In addition, due to the current low prices of live pigs, major pig companies have also slowed down their slaughter speed

Will pig companies stop "heavy volume" due to falling pig prices?

Based on the slaughter tasks in the second half of the year, major pig companies will not stop "heavy volume" because of the drop in pig prices

Li Jinghui, deputy secretary-general of the China Animal Husbandry Association, told a reporter from China Business Daily that high-quality companies will continue to make profits under the balance of supply and demand

Qin Jun, secretary of the board of directors of Muyuan shares publicly stated that Muyuan shares will continue to strengthen cost control

In order to reduce the cost of breeding, the listed pig companies have tried their best

The relevant person in charge of the New Hope Group also told a reporter from China Business Daily that the link with the biggest difference in efficiency and cost is the pig breeding link

In order to reduce costs, Zhengbang Technology eliminated 350,000 low-efficiency breeding sows in the first quarter.

Zhengbang Technology also stated during the survey that the elimination of inefficient sows has reduced costs for the company.