Recently, the rise in pork prices has become a hot topic in the street. The profit of 1500 yuan / head may also make pig raising the hottest career. Lei Jun's acquisition of Xiaomi is ridiculed as better to raise pigs, and the profit of selling one car is better than selling two pigs & hellip& hellip;' Pig seems to have a tendency to become a 'new monetary unit'.
Recently, local governments have successively introduced measures to stabilize pig prices, and listed companies have invested in expanding production capacity. How long can pig prices fly?
The pig price doubled in 6 months, and the profit from selling a pig was 1491 yuan
According to the data of the Ministry of Commerce, from August 26 to September 1, the wholesale price of pork was 34.59 yuan per kilogram, up 8.9% month on month, which is the 13th consecutive week of increase in the wholesale price of pork.
According to the data from China pig breeding network, on September 3, the average price of three yuan pigs at home and abroad was 27.13 yuan / kg, which has doubled compared with six months ago. The ratio of pig to grain has already broken through the break even point of 6:1, and now it has reached 13.56:1.
So, how much money can you earn by raising a pig?
According to Feng Yonghui, an analyst at sozhu.com, according to the current pig market price, the average profit of breeding households has reached 1491 yuan, a record high.
In some areas, the rise is fierce. Guangdong has exceeded 30 yuan / kg. The prices in Zhejiang, Fujian, Hunan and Jiangxi are also close to this level. Qinghai, Tibet and Yunnan are relatively stable, less than 20 yuan / kg.
In order to stabilize pig prices, these provinces have set up a 'military order' for pig production
The rising price of pigs has attracted the attention of relevant departments.
On August 21, the national Standing Committee deployed to stabilize the supply of pigs. This is also the first time in recent years that the State Council has explicitly requested that local governments immediately cancel the regulations on banning and limiting the raising of pigs beyond the laws and regulations.
At the same time, in order to stabilize pig prices, local governments have successively issued relevant policies to encourage production. Sichuan, Jiangxi and Zhejiang even set a "military order" for pig production.
Seize opportunities and expand production capacity of listed companies
Pig prices rose significantly, but in the early stage, due to the increase of breeding cost investment, most companies entered the profit-making period of pig breeding in the second quarter. Taking advantage of this opportunity, the company is also accelerating the horse racing enclosure, or investing in new breeding projects, or building the integration of upstream and downstream industrial chains, so as to increase profits by expanding production capacity.
According to incomplete statistics of 21 data news laboratory, 9 of the 18 listed companies involved in pig business in a shares have invested in projects related to pig breeding this year.
However, it will take time for the increase of production capacity to reflect the terminal price. According to the previous China Agricultural Outlook report (2019-2028), the pig price peak in this round of price cycle is expected to be in the first half of 2020, and the pig price will maintain a high level in the next three years. Tianfeng securities also said that in the next 2-3 years, it will be the profit boom cycle of the pig raising sector superimposed on the rapid expansion period of listed enterprises, which is a long-term market of simultaneous rise in volume and profit.
Source: 21st Century Business Herald