Pork prices have dropped by nearly 20%, and pressure on breeding companies has increased
Guangzhou Daily (all-media reporter Jing Nan) After the Spring Festival in 2021, domestic pork prices have shown an obvious downward trend.
Statistics from Xinmu.com and Zhuochuang.com show that the national average price of pigs for slaughter has dropped by 17.5%, close to 20%, from the January high of 18.3 yuan per catty to 13.97 yuan on March 20; at the same time, nationwide The average price of lean pigs for slaughter fell to 27-28 yuan/kg, a drop of more than 5.5% in March alone.
Compared with late February, after entering March, the national pork price decline has narrowed and the rate of decline has slowed down, with a single-day price reduction ranging from 0.2 to 0.3 yuan/kg.
However, the peak demand season in spring ended, and some breeders' expectations for the market outlook increased, and the stock of large pigs began to increase.
Chicken beef prices are expected to fall
The significant drop in pork prices will have three effects on the market.
First of all, the substitution performance of other meats has decreased, and the price of chicken has also seen a further significant drop.
The price of beef and other non-staple foods is expected to follow the decline, which may affect the domestic price index in the first quarter of 2021.
In addition, the price of pork has fallen, putting greater pressure on the majority of breeding and slaughtering companies.
According to Zhuochuang's monitoring data, since the beginning of February, the average slaughter gross profit of domestic key enterprises has shown a downward trend. After entering March, the average gross profit per head has turned from positive to negative.
Based on the survey data of the transaction price of white bars in the sample wholesale market, the average transaction price is mostly 31.0~32.5 yuan/kg, and a few high prices are above 33.0 yuan/kg; the production costs of breeding enterprises in the region are also fluctuating near the transaction price.
The stock prices of breeding companies in the A-share market will also be negatively affected, and the value of mid-line investment will decrease as a result.
Breeding stocks represented by Muyuan shares and Zhengbang Technology have also seen their recent trend oscillating downward.