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Why the recent surge in pig prices? Four reasons worth pondering! In the first half of 2021, the price of pigs may not be lower than 15 yuan/kg.

Release time:

2021-01-07


Why the recent surge in pig prices? Four reasons worth pondering! Local pig price has broken 20 yuan/kg!

"Agricultural Treasure Book" New Animal Husbandry Network Reporter Li Xiaojia Wang Wenqiang

 
"The price of pigs in Chengdu today is 19.5 yuan/kg, and the price of big pigs over 350kg has risen to 20 yuan/kg." Boss Liu of a pig farm in Sichuan happily told reporters that although the price of pigs was expected to rise before the festival, he never expected it to rise so high. The current market is indeed beyond the expectations of many people.
 
Generally speaking, the price of pigs will rise before the Spring Festival. In January 2020, the price of pigs will be 18 yuan/kg, while in January 2021, the price of pigs in some regions has broken through to 20 yuan/kg. In just two months, the increase was as high as 40%. After entering December, the state has put in three rounds of frozen meat reserves to cool down,The more regulated the price of pigs, the higher it is.
 
Why this round of pig prices rose? After the market also can continue to break through? Nongcai Baodian new animal husbandry network reporter interview found that the four major reasons or pig prices soared the driving force.

There are four reasons for the increase in pig prices.
1

Before the Spring Festival, bacon production boosts consumption

 
A survey by a reporter from the New Pastoral Network of the Agricultural Treasure Book found that,The increase in pig prices is mainly due to the increase in pork consumption due to the decrease in the previous temperature, coupled with the start of curing in many places, the demand for large-weight fat pigs increased.With the rise in the price of fat pigs, free-range farmers and large-scale farms have a strong intention to sell, and the pace of pig slaughter began to slow down, boosting the rebound in pig prices. At present, the bullish sentiment on the breeding side is strong, many pig farms pressure bar, looking forward to sell higher prices.

 
Xinfadi market feedback, affected by this, recently some large-scale farms in the sale of pigs in the form of auction, pre-announced the number of pigs on the day of the slaughter and single weight, by the slaughterhouse or agent bid for the purchase, the higher the price, pull up the price of pigs, promote the price of meat.

2

Frozen meat detected new crown positive impact demand

From January to November 2020, China's imported meat volume reached a record high of 3.94 million tons, but imported frozen products detected new crown positive events frequently, which had a greater impact on pig prices. Zhang Cheng, a pig broker in Shandong Juncheng Pig Trading Center, said, "At present, the consumption of fresh meat is the most prosperous. When there were frozen products before, the price can be controlled and the supply and demand can be balanced to a certain extent,However, the reduction in the circulation of frozen products has a great boost to the price of fresh meat ".

It is reported that the cold storage in Zhengzhou has been closed for operation since December 12; all imported cold chain foods in Xiangyang, Hubei have been removed from the shelves since December 4; since December 7, many markets in Xi'an have banned the sale of imported aquatic products and Frozen goods operators have signed relevant commitments; it can be said that the measures of off-shelves, banning sales, and sealing off all over the country have dealt a comprehensive blow to imported cold chain frozen products. This has boosted the increase in fresh pork transactions and the enthusiasm of pork dealers to stock up, further driving up pork prices.
3

Production capacity has not yet been fully restored and supply is still in short supply.

Although the official recently released news that the current national pig inventory and breeding sow inventory have returned to more than 90% of the annual level, the gap is still huge. Based on China's normal pork output of 55 million tons in previous years, the pork gap is still more than 5.5 million tons.
 
Industry insiders have another view on the actual stock of pigs. Shang Haiguang, chairman of Henan Senhe Pig Gene Breeding Co., Ltd., told reporters, "It is estimated that 23 million sows can be bred nationwide in May and June this year. Now the regional epidemic is serious,Even if there is an increase in the number of sows available nationwide, it is estimated that there are less than 26 million sows.”。

 
Judging from the feedback from the Xinfadi market, after October this year, among the white striped pigs on the market, the proportion of small white striped pigs in white striped pigs has been relatively high, accounting for more than 25%.This means that many pigs are slaughtered in advance, which may affect the normal recovery of pig production capacity.In particular, more than two consecutive months of early slaughter, making the recent recovery of pig production capacity is not as fast as expected.
 
A pig dealer also revealed that the weight of some group pig companies has dropped to 90kg, which is consistent with the feedback from the Xinfadi market. The pig dealer said, "To put it bluntly, there is still a shortage of pigs." Many listed group pig companies are expected to produce pigs ahead of schedule in order to complete the slaughter task. Therefore, it is expected that the market will be short of standard pigs before the Spring Festival, aggravating the tight supply situation.
 
"At the same time, the current regional epidemic is severe." shang haiguang said,The shortage of pig supply caused by the epidemic is also a major factor affecting the rise in pig prices.Shang Haiguang said that many pig farms are now plagued by diseases. If vaccine and wild drugs coexist, the future stock will still be affected.
4

High-priced reluctance to sell sentiment led the rise.

With the supply-side pressure bar reluctant to sell the price rise, which also forced the slaughtering enterprises to sell at a high price, it can be said that riding a tiger is difficult. Liu Tong, manager of the marketing department of Xinfadi, said that due to the high price of meat, even exceeding the price level of the same period last year, the restraining effect on demand has already appeared,The most direct manifestation is that the recent arrival of white pigs in the market is more common.The white striped pigs delivered to the market by the slaughterhouse cannot all be sold within the sales time. The slaughterhouse would rather reload the car and transport it back to the slaughterhouse than sell it at a reduced price.
 
"Because the price of the agent's price reduction promotion is a loss. So in the sales process is basically: this is the price, willing to want, not willing to want, don't want. The agent has no room for maneuver, and the recent slaughterhouse even want to reduce the price promotion, merchants are not willing to purchase more, because the daily sales volume is basically so large, merchants can not sell after increasing the purchase".
 
From the interview, we learned that the current bullish sentiment on the breeding side is strong, and many pig farms are looking forward to selling higher prices. So it can be judged from the above,Pig prices will remain easy to rise and difficult to fall in the short term, this market trend is not a few large groups can control.
 
Pig price in 2021 or not less than 15 yuan/kg
 
Although pig prices are bullish in the short term, farmers should also note that the fixed-point slaughter volume in November has increased by 14.5 month-on-month and 49.8 year-on-year. For four consecutive months, there has been an increase year-on-year, indicating that the supply of white pork is increasing.

 
It is understood that at present, Zhengzhou logistics port domestic goods can be shipped normally, imported goods still need to wait, soPart of the frozen goods will gradually flow into the market, with the lifting of the ban on the frozen goods market around, or to ease the supply tensions in the market.
 
Zhang Cheng also said that this point is the peak of pig prices every year. Judging from past experience, after January 10, the price may have to be adjusted back. Even if the price does not drop this year, the possibility of continued skyrocketing is not very high. The average price will not exceed 20 yuan/jin.
 
Many people in the industry are optimistic about the future market, and this high market may remain until March. Shang Haiguang believes that pig prices are at a high level in 2021. By April and May, the overall economy will improve and pork consumption will pick up.
 
Wen Xiaokun, manager of Yunnan Jinning Shengyi Technology Breeding Co., Ltd., said that pig prices are estimated to be no lower than 15 yuan/kg in 2021. Liu Zejun, general manager of Chengdu Plyco Biotechnology Co., Ltd., also believes that the price of fat pigs in the first half of 2021 will not be lower than 15 yuan/jin, and this wave of high pig prices can be maintained until March.
 
Wan Changhua, deputy general manager of Luonushan Pig Breeding Co., Ltd., agreed with Liu Zejun that the current pig price would be maintained in the first quarter and the rise would end in March. It is possible that the price of pigs will fall back to about 12.5 yuan/kg by the end of 2021.