Pork prices sluggish pig farmers respond to "pig cycle"

Pork prices that have risen by 43.5% have been sluggish since the National Day -

“Ride roller coaster” is the best realism of the current pig farmers’ mentality. The price of pork that had been floating all the way before the National Day was “big diving”, which made many pig farmers start to get nervous. A sinusoidal "pig cycle" is coming back. Experts suggest that pig farmers have to cope with or have a way out.

From the beginning of the year, the price of pork rose by 43.5% from the same period of last year, and some media even said that it was pork that had a high CPI. However, this upward trend eventually turned into a turning point in September. After entering September, local governments gradually released reserve meat in the market, which eased the shortage of live pigs and drastically reduced the national pork price after the National Day holiday. In Liaoning, where pork prices have fallen sharply in this round, pork prices have dropped by more than 4 yuan per kilogram from the highest price of 33.6 yuan per kilogram.

The reason for this round of pork price decline was due to the increase in pig slaughter. “Preliminarily estimate that the amount of pigs slaughtered in Dalian can increase by about 20%. This is because pigs produced in March and April of this year grow up to slaughter, which increases the supply of live pigs and therefore affects the price of pigs.” Secretary-General, Dalian Swine Association Li Laijun said.

The industry believes that stubborn "pig cycle" seems to show power. "The 'pig cycle' is a vicious circle, the price of pork has soared, sow volume has soared, the supply of live pigs has soared, the price of meat has fallen, farmers have eliminated a large number of sows, the supply of live pigs has decreased, and the price of meat has risen again. Circulation. Pig farmers seem to be unable to escape."

Due to rising costs, the current purchase price of live pigs in the Northeast has dropped from more than 20 yuan per kilogram to 17 yuan per kilogram, plus the Northeast will enter the winter, the prevention and control of the epidemic will increase. All these factors will cause pig farmers to increase the amount of pigs slaughtered. Because of the increase in supply, hog prices will further decline.

Tian Zhidan, a researcher at Tianqi Futures Research and Development, believes that after the Spring Festival in 2012, there will be an obvious beginning of a "pig cycle".

How to deal with the impact of this "pig cycle" on the pig breeding industry? Hubei Province, a typical village for raising pigs, has developed a “community model” in Pearl Miao Village of Chuan Township in recent years, effectively enhancing its ability to withstand market risks.

In recent years, pig farmers in Pearl Miao Village have developed into a group and gradually formed a “co-rich model” that takes the company as a leader, cooperatives as a link, and farmers as partners. Leading company Gongfu Animal Husbandry Co., Ltd. made a combo boxing: invested 30 million yuan to build a million-ton full-priced feed mill, invested 150 million yuan to establish Gongfu Ecological Science and Technology Park, and recently air-breeding pigs from the United States to seize the commanding heights of the regional breeding pig market .

Nowadays, in Zhumiao Village, every pig farmer can receive quality piglets, cheap feeds, and hygiene and disease prevention provided by the company. Cooperatives also help farmers to grasp the market, control their scale, and avoid risks. The village's aquaculture costs and aquaculture risks have been reduced, the quality and price of pork have increased, and the sales market has expanded from domestic to foreign countries. In 2010, when the epidemic was serious and the price was low, the pig farm scale in the village expanded 60%.

It is perhaps a long-term development path for Baotuan to respond to the "pigs cycle."