20 yuan a catty! The price of pork belly is cut in half
Farmers are ready to "buy the bottom", optimistic about the market rebound after the Mid-Autumn Festival
Our reporter Wang Yanping and Liu Xianxin
Oil prices are rising, gold is rising, steel is rising, and paper is rising... This year, the prices of many commodities have risen and risen, but pork prices are falling.
After the Dragon Boat Festival holiday, the price of live hog futures fell sharply by 5.76%, with a minimum of 18,550 yuan/ton, which was the lowest since the listing of live hog futures on January 8, 2021.
The drop in pork prices is naturally a good thing for the common people.
In just two years, the price of pork has risen from more than ten yuan a catty to twenty or thirty yuan a catty or even thirty to forty yuan a catty. Now it has fallen back to more than ten yuan to buy it. This change is really fast.
Yesterday, the reporter also went to the farmer’s market.
Pork belly fell to 20 yuan a catty
Only half the price around the Spring Festival
Yesterday at 5 o'clock in the afternoon, the reporter came to the Wanshouting Farmers Market near Hangzhou Wulin Square.
A pork stall owner told reporters that the price of pork belly is now 20 yuan a catty, and whole refined meat sells for 22 yuan a catty.
Another stall selling Jinhua native pigs sells pork belly for 23 yuan and sandwich meat for 17 yuan.
Just two months ago, at the Wanshouting Farmer’s Market, the retail price of pork belly was 27 yuan a catty, and around 40 yuan a catty before and after the Spring Festival, and even sold for 40 to 45 yuan a catty in February and March last year. .
At the Pingfeng Street Farmers Market in Hangzhou, a pork stall owner told reporters that the finer pork belly sells for 22 yuan a catty, the fatter pork belly sells for 18 yuan a catty, and the sandwich pork sells for 16 to 17 yuan a catty.
Generally speaking, the price of pork in the farmers' market has dropped significantly. Taking pork belly as an example, the current price has been cut in half compared to before and after the Spring Festival, and pork with the prefix "1" has returned to the market.
"I never expected that the price of pork will fall to more than 10 yuan per catty this year." An uncle who was buying sandwich meat said happily. It seems that everyone still has lingering fears about the high price of pork.
However, compared with two years ago, the price of pork belly is still much more expensive now.
In the first half of 2019, when the reporter interviewed at the Maolangxiang Farmers Market in Hangzhou, the price of pork belly was 13 to 14 yuan per catty.
Farmers prepare to "buy the bottom" into piglets
Optimistic about the market price rebound after the Mid-Autumn Festival
Zhang Hongliang, chairman of the Sanyuan Pig Specialized Cooperative in Qujiang District, Quzhou City, told reporters that the current purchase price of pigs in their cooperative has fallen to 7.5 yuan to 8 yuan per catty.
"Our breeding cost is about 8.5 yuan per catty, and the purchase price has fallen below the cost price for more than a week. At the beginning of this year, the highest purchase price for pigs was 20 yuan per catty." He said, the highest purchase price in history. Appeared in February and March last year, the highest reached 23 to 25 yuan per catty.
If the pig raises a loss, will we still get piglets next?
"I want to buy in. There are currently 28,000 piglets in stock. Next week, we are going to Inner Mongolia to buy 5,000 piglets. Now the price of piglets has dropped to 500 yuan. Last December, I bought 4,000 piglets for 1,500. Yuan per head! The highest in February and March this year has risen to over 1,800 Yuan per head." Zhang Hongliang said.
Zhang Hongliang said that the piglets that entered in December last year have gradually entered the sales season. According to the current market, a pig will lose six to seven hundred yuan.
When the market was at its best last year, a pig could make up to several thousand yuan.
In addition to the consideration of "buying the bottom" into piglets, according to Zhang Hongliang's judgment, as the weather turns cold after September, pork consumption rebounds and prices are expected to rebound.
In addition, local government departments also provide low-interest loans for their cooperatives, and the financial costs of pig raising in cooperatives are also expected to be reduced.
Meng Xianglun, chairman of Zhejiang Hangtai Food Co., Ltd., who has been in the pig wholesale business for more than 20 years, is not so optimistic about the pork market.
Yesterday he had a meeting with his colleagues in the industry association, and everyone thought that the purchase price of pigs from the main pig producing areas would fall below 6 yuan a catty.
"At present, in places like Henan, Shandong, Hebei, the three northeastern provinces, and Anhui, the purchase price of pigs has fallen below 7 yuan."
Meng Xianglun told reporters that around the tenth day of the first lunar month of this year, the wholesale price of their company's white striped pigs was sold at 43,000 to 45,000 yuan/ton. Now it has fallen to 18,000 yuan/ton, which is almost 60% off.
The price of meat has fallen, and sales have rebounded significantly. Now the daily sales volume is about 50 tons, while the sales volume during the Spring Festival is only about 20 tons.
Meng Xianglun believes that after the Mid-Autumn Festival, as the weather turns cooler and pork consumption increases, pork prices will definitely rebound, and farmers are expected to achieve capital protection.
Pig companies face losses across the industry
The stock price of the aquaculture sector hit a record low
According to statistics from the China Animal Husbandry Information Network, as of last week, the average price of live pigs in 22 provinces and cities across the country was 15.54 yuan/kg, which has fallen by 32% since the beginning of May.
As the price of pork continues to fall, the stock prices of listed pig companies have also been falling.
From the perspective of the sector, September 2, 2020 is a major turning point for the industry. From this day on, most of the stock prices of listed pig-raising companies have started a long bearish journey.
Muyuan shares, known as "pig grass," fell 2.25% on Wednesday, and its share price hit a new low in nearly four months.
Muyuan shares hit a record high of 92.53 yuan on February 22 this year, and then continued to adjust, with a cumulative decline of 34.72% in the past four months.
The brothers behind the boss are not so lucky.
For example, the industry's second and newest hope that the stock price will reach a new low of 13.41 yuan on Tuesday, the lowest since April 1, 2019.
Since September 2, 2020, the cumulative decline has been 62.88%.
Wen's shares have been in decline since the beginning of November 2019, with a cumulative decline of 60.77%.
Zhengbang Technology's share price plunged 5.12% on Tuesday, and yesterday hit a record low of 11.02 yuan. Since September 2, 2020, it has fallen by 57%.
Tianbang shares also hit a record low of 8.81 yuan yesterday, with a cumulative decline of 53.33% since September 2, 2020.
2020 is the most ferocious time for these pig raising companies to make money: For example, Muyuan's net profit in 2020 is 27.451 billion yuan, a year-on-year increase of 348.97%; Zhengbang Technology's net profit in 2020 is 5.744 billion yuan, a year-on-year increase of 248.75%; Tianbang The net profit of the shares was 3.244 billion yuan, a year-on-year increase of 3131%.
However, due to the sharp decline in the number of listed live pigs, Wen's net profit in 2020 has shrunk by 46%.
From the publicly disclosed information of many listed pig raising companies, Muyuan shares the lowest cost of breeding in the industry. Its fattening cost is 16 yuan/kg, Zhengbang's fattening cost is 21.6 yuan/kg, and New Hope’s cost is 20 yuan/kg. , New Hope’s fattening cost for purchased piglets is 30 yuan/kg.
This means that pig companies are already losing money.
Our reporter Wang Yanping and Liu Xianxin