The production capacity of top pig companies is polarized, and the timing of the "bottom-hunting" pig cycle...

In February, the production and sales of live pigs by domestic pig companies were differentiated.

The production and sales of pig enterprises are differentiated

As of March 29, all 12 domestic listed pig companies have announced the sales data of live pigs in February.

Li Ming, a pig analyst at the Agricultural Products Division of Shanghai Ganglian, told a reporter from China Business Daily: "The pace of development and construction of some companies slowed down in the second half of 2021, resulting in no significant growth in pig production capacity in the first half of 2022.

A reporter from China Business Daily found that although the number of live pigs sold by leading pig companies such as Wen's and New Hope has not decreased, there is also a trend of slowing down the speed of production capacity expansion

Increased financial pressure may be the main reason for pig companies to slow down production capacity

The pace of production capacity reduction is accelerating

It is worth noting that industry insiders believe that the slowdown in production capacity expansion of leading pig enterprises does not mean production reduction, and the degree of industrial capacity reduction depends on the exit of small and medium-sized retail farmers

Li Ming believes that the slowdown in the production capacity release of pig enterprises is only a form of operation

"It is estimated that the large-scale breeding enterprises that sell more than 500 pigs each year account for about 60% of the market, and the top 20 leading enterprises account for about 20% of the market

Kaiyuan Securities also stated in the research report: "In February, the number of reproductive sows in the sample size monitored by the Ministry of Agriculture continued to decline

The pig industry has continued to lose money

The pig industry has been losing money for 11 consecutive weeks

As the pig industry continues to lose money, the National Development and Reform Commission will work with relevant departments to start the third batch of central frozen pork reserves this year

Has the price of hogs fallen?

Policy support coupled with the accelerated pace of production capacity reduction in the industry, some investment institutions are optimistic about the rebound in live pig prices

There are also views that although the price of live pigs may rebound in the second half of 2022, it does not mean that the turning point of the live pig market has reached

Zhu Zengyong said: "At present, it can only be said that the price of live pigs has reached the bottom

"The current price of live pigs is still 1 yuan away from the low price of 11.