What is the trend of pork price in the future? The relative surplus of pig supply will continue

2021-10-26

According to the latest monitoring data of the Ministry of agriculture and rural areas, from January to September this year, the slaughter of pigs by designated pig slaughtering enterprises above designated scale increased by 60.9% year-on-year, including 95.2% year-on-year in September. Since late January this year, pork prices have fallen for eight consecutive months, and there has been no rebound in pork prices in the past Mid Autumn Festival and national day consumption season. In the second week of October, the average price of pork in the market was 21.03 yuan per kilogram, down 60.8% from January this year. The falling pork prices have allowed consumers to eat meat happily, but also made many pig farmers anxious. Taking Sichuan, a big pig raising Province, as an example, 29.287 million pigs were sold in the first half of the year. The production capacity just reached the perennial level, but the price fell below the cost price of 8.5 yuan per kilogram. It is understood that pig production gradually recovered from the beginning of the year, a large number of high-level large-scale pig farms rose rapidly, and pork prices also fell rapidly. At the beginning of the year, the pig breeding industry, which also made a lot of money, now has to face a loss situation. Experts said that the current pig price has fallen to the lowest in recent years, and the enthusiasm of many farms (households) to develop production has been frustrated. In September, the loss of pig farms (households) reached 76.7%. What is the trend of pork price in the future? How long will the "loss cycle" of pig farms (households) last? In this regard, Kong Liang, head of the animal husbandry and Veterinary Bureau of the Ministry of agriculture and rural areas, said that it is expected that the output of listed pigs will increase significantly year-on-year from the fourth quarter of this year to the first quarter of next year, and the relative surplus of pig supply will continue for some time. If the production capacity is not substantially reduced, it will be difficult to reverse the downturn in pig prices, especially in the off-season after the Spring Festival next year, pig prices may continue to fall, resulting in heavy losses for pig farms (households). At present, there are many reasons for the continuous decline of pork prices. "With the joint efforts of all parties, pig production has fully recovered in the second quarter of this year. At present, there is a phased surplus in market supply, mainly because production is still growing inertia." Kong Liang explained that the supply of pig market "depends on piglets in the medium term and sows in the long term". Since March this year, the number of newborn pigs in large-scale pig farms has been more than 30 million per month, and has continued to grow. From August to September, the stock of fertile sows in China was close to 110% of the normal stock. Pig production is related to the development of "agriculture, rural areas and farmers", people's life and price stability. Therefore, to pay attention to pig production, we should not only pay attention to the temporary price rise and fall, but also pay attention to and solve the deep-seated problems faced by the industry, so as to promote the high-quality development of pig industry. "Preventing the ups and downs of pig production and ironing out the 'pig cycle' as much as possible has always been the direction and focus of our efforts." Kong Liang said that in view of the signs of pig overcapacity, since June, the Ministry of agriculture and rural areas has intensively issued early warning information to guide farms (households) to speed up the elimination of low-yield sows and orderly arrange the release of pigs. Subsequently, the opinions on promoting the sustainable and healthy development of the pig industry was issued together with relevant departments, and the implementation plan for pig production capacity regulation (Provisional) was printed and issued to strive to stabilize the order of pig production. Since July, the number of fertile sows in China has ended its growth momentum and decreased month on month for three consecutive months. According to Kong Liang, at present, some breeding enterprises, especially large group enterprises, take measures such as "eliminating one low-yield sow from ten sows, eliminating one weak piglet from one litter of piglets, and putting fattening pigs out of the market 10 days in advance", which plays a positive role in reducing losses and reducing production capacity of the industry, which is worth learning from. According to the statistics of the National Bureau of statistics, at the end of September, there were 44.59 million sows and 438 million pigs in China, which were equivalent to the level at the end of 2017. This also means that pig production has been fully restored. The relevant person in charge of the Ministry of agriculture and rural areas said that in the next step, in order to accelerate pig breeding out of the dilemma and prevent major fluctuations in pig production and supply, the Ministry of agriculture and rural areas will implement local hierarchical regulation responsibilities according to the requirements of the capacity regulation plan, focus on pig capacity reduction, strengthen production and market monitoring, timely issue early warning of overcapacity and encourage farms (households) We will accelerate the elimination of low yield sows and sell fat pigs according to the trend, so as to return the pig production capacity to a reasonable level as soon as possible. At the same time, we will maintain the stability of long-term support policies such as land use, environmental protection, loans and insurance, and do not engage in "sharp turns" and "flipping cakes", so as to prevent damage to basic production capacity and affect the long-term stable market supply. (Xinhua News Agency)

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