From country houses such as Country Garden, Evergrande and Vanke to Internet companies such as NetEase and JD.com, they have all set their sights on the "Second Brother". Corporate cross-border pig farming sees the profitability behind this industry. However, lay pigs rarely laugh out. For consumers, no matter who raises pigs, they are more concerned about the price and quality of pork.
On the evening of May 7, Vanke's recruitment mini program "Wan Zhaojun" released five pieces of recruitment information, and each position was related to "pig". Cross-border housing is not new, and this time, Vanke has targeted the pig breeding industry.
Before Vanke, housing companies such as Country Garden and Evergrande, Internet companies such as Netease and JD.com, all set their sights on the "Second Brother". Real estate, Internet companies have set foot in, let the pigs stand on the wind again.
Pig raising has become a common choice for many companies
During the epidemic, part of Vanke's real estate provided fresh and pork to the owners, and had a good response, but the procurement process was extremely difficult, so the idea of self-production was born.
In March of this year, Vanke set up a food business department and began layout of pig breeding, vegetable cultivation, and catering, claiming to build an entire industrial chain from "farm to table" to provide safe and healthy daily meals for Vanke's existing customers.
At first glance, Vanke's previous diversification mostly revolved around the main real estate business. This time the cross-border pig farming has a significantly larger span. In fact, Vanke's pig-raising process has long been traced. In 2015, Vanke established Lubei Ecological Technology Co., Ltd. with an 8% shareholding ratio. The successful case displayed on the official website of the latter is the pig raising project. More significant actions appeared in 2018. In April of that year, Vanke signed a strategic cooperation framework agreement with agricultural products of listed companies. The two parties agreed to carry out new retail and urban food safety industries, the development of a comprehensive industrial park for agricultural products circulation, and the construction of modern agricultural products cultivation and breeding bases. Cooperation.
Netease Ding Lei has also raised pigs before, and real estate companies Wanda and Evergrande have already raised pigs. Sun Shilin, chairman of Chongqing Southern Group, spent more than 2 billion yuan to enter the pig industry more than 10 years ago.
Profit-seeking is a capital characteristic
When Sun Shilin announced to enter the pig industry, many people were surprised. "The pig industry has a high risk and a long cycle. Why do you have to raise pigs? My family opposes raising pigs. The outside world also laughs and doubts." He said that pig raising is not a whim, but a decision made after careful inspection.
"People take food as the sky. Pork is the most popular among the Chinese diet. Therefore, the prospect of the pig breeding industry is bright." Sun Shilin believes that the real estate industry has gradually saturated with the acceleration of urbanization.
Statistics show that pork consumption now accounts for more than 60% of the national meat consumption. As the world's largest pork production and sales country, China has about 700 million pigs slaughtered every year.
Some insiders said that diversification or specialization is a problem facing many companies. There are successes and failures, but the nature of capital for profit will not change. Many breeding enterprises have made money on the tuyere, which is an important reason for some enterprises to raise pigs.
The 2019 swine fever epidemic triggered prices. On May 9, the analysis report of Chongqing's hog price trend released by the National Chongqing (Rongchang) Hog Big Data Center showed that at the end of October 2019, the national average hog transaction price reached 41.5 yuan / kg, which was lower than the lowest average in May 2018 The price of 10 yuan / kg rose by 415%, the national price of live pigs entered a super cycle.
As the price of meat rises, the performance of big pig farmers is also skyrocketing. In 2019, New Hope Pigs achieved a revenue of 7.487 billion yuan, an increase of 42.62% year-on-year, and achieved a gross profit of 2.885 billion yuan and a gross profit margin of 38.53%. In the same year, the leading pig farming company Muyuan Co., Ltd. achieved operating income of 20.221 billion yuan, an increase of 51.04% year-on-year. The net profit of listed shareholders surged by 1075.37% to 6.114 billion yuan.
The upward effect of stock prices is also reflected in the wealth rankings of relevant company shareholders. The 34th Global Billionaires List released by Forbes shows that the Qin Yinglin family of Muyuan shares ranks 43rd on the list with a fortune of $ 18.5 billion. The price of pig king has already surpassed the Internet giants such as Jingdong Liu Qiangdong and Xiaomi Leijun.
Consumers are more concerned about pork price and quality
Since last year, due to the superimposition of multiple factors such as African swine fever and the new crown pneumonia epidemic, the production capacity of live pigs has declined. Governments at all levels have issued a series of powerful measures to promote the development of hog production. The hog production capacity continues to improve, but it is still low compared to the same period in history. Relevant state departments have intensively issued policies for financial support, land use, and farming-related agricultural machinery subsidies.
China Food Industry Analyst Zhu Danpeng said that the company's entry into the pig industry is in line with the policy development trend. The state is also encouraging companies with strength, capital and resources to cross-border to make the pig industry more branded and standardized Safety is more guaranteed.
Wang Gangyi, a professor at the Modern Agricultural Development Research Center of Northeast Agricultural University, also believes that if pig breeding starts at this time, it will be a good time by the end of the year. However, few large companies outside the industry enter the aquaculture industry with few laughs.
For decades, Vanke has served a huge customer base. How to tap the follow-up value of these users and better serve these customers is a question that Vanke needs to think about.
For consumers, no matter who raises pigs, they are more concerned about the price and quality of pork. "The supply of pig market in the short term is relatively sufficient." Zhong Shaozhi, director of the National Chongqing (Rongchang) Pig Big Data Center, said that in the second quarter of this year, the supply and demand elasticity of pigs showed a strong game and the situation was more complicated. At the same time, it should be noted that the swine fever epidemic situation still occurs sporadically throughout the country, the breeding risk and breeding costs are still relatively high, and the overall price of pigs will remain high this year.
All marching into the pig industry has forced pig enterprises to transform and upgrade. Lin Qixin, chairman of the Chongqing pork retail industry Qijin Group, told reporters that Qijin Rongchang Pig Science and Technology Industrial Park will make full use of artificial intelligence and big data to build an electronic file for live pigs raised in the science and technology park, so that each pig will be from birth to The whole process can be traced back to the source of the table to ensure the safety on the tongue.