Pig cost analysis: a pig profit of 22%

In recent years, more and more large-scale enterprise groups have joined the swine road and become a unique landscape. In the past few years, Goldman Sachs, Netease, and Thailand's Chia Tai Group raised pigs. This year, another real estate company, Merrill Lynch, investment institutions, Lenovo Investment, Jiuzhou Investment, and a series of companies that seem to have no relations with the pigs, appeared in pig raising. In the list, compared with the rural retail households, their financial strength is strong, and the input of funds is frequently over 100 million yuan.

Why are more and more people fascinated by pigs? Did the company that had joined the pig industry in the early stages paid off? What impact does a large amount of foreign intensive funds join the traditional pig-breeding industry on the pork market?

Cross-border pig housing enterprises and investment institutions join in the activities of Yang Bingqiu, who was once the owner of the drug. Yang Bingqiu began raising pigs in the second half of 2006. In 2007, as the price of meat rose, Yang Bingqiu, who tasted sweet pigs, officially switched to the pig industry. He has now set up a special cooperative for ecological pig breeding. "There are more than 100 members now."

Not only small bosses such as Yang Bingqiu, many large companies have begun to fight for pigs. In the past year, about 10 companies announced their entry into the ranks of pig raising, including real estate companies and investment institutions.

Cheng Junling, chairman of Nanjing Futeng Real Estate, founded Futeng Nongkang Agriculture and Animal Husbandry Development Co., Ltd. Now it has become one of the largest pig raising enterprises in Nanjing. Liu Yuande, vice president of Guangzhou developer Merrill Lynch, also said in July this year that it will invest 150 million yuan to build Guangzhou's largest single pig farm.

Also in July, Lenovo Investment and Jiuzhou Investment injected capital to establish Jiangsu Changzhou Lihua Livestock and Poultry Co., Ltd., and plans to establish 8 to 10 new integrated chicken breeding companies, geese raising companies and pig breeding companies by 2015.

22% of profit is for retail investors and they are unwilling to raise why so many companies are willing to raise pigs? Yang Bingqiu calculated an account for the reporter: A pig from piglet to slaughter, it takes about 7 months, the current cost of 1300 yuan per pig breeding, the wholesale price of 1800 yuan, a pig can make more than 400 yuan, profit margin About 22%.

It is worth noting that while many large-scale enterprises have entered the pig-raising industry, many pig farmers have chosen to withdraw from the market. The main reason is that the “pig cycle” has frequently emerged in recent years, and the malpractices of retail farming began to show up. When meat prices soared, they swept away and the price of meat fell.

The Ministry of Agriculture had surveyed 20 major pig producing provinces across the country. In July 2007, the amount of live pigs in free-range farmers decreased by 20.5% year-on-year, and the number of live pigs in large-scale pig farms increased by 7.3% year-on-year. Characteristics, which also switched to large-scale enterprises when the piglet free up market space.

After two years of losing pigs, she finally made money. Among the big companies who entered the pig industry in advance, some people have already tasted "pork incense."

According to a related person from a Sichuan-based company, the company acquired a meat product company in the north in 2008 and was involved in the pig industry. However, it has been losing money until it achieved profitability in June this year. According to the above-mentioned sources, this is mainly due to the relatively long investment cycle of the pig industry.

Bozhou boss Yang Bingqiu also told reporters that in 2008 he had a loss of 100,000 yuan in the first year of the pig industry.

It is worth noting that in 2008, it was exactly the highest price point of the previous "Pig cycle". Yang Bingqiu said that the high cost of entering the market at the time, coupled with the impact of the outbreak, led to a loss that year. However, with the "pig cycle" adjustments, this year's meat prices soared, his annual income up to 670,000.

Large-scale breeding crack "Pig cycle" curse?

At present, the number of pigs raised by retail households in China accounts for more than 70%. The industry believes that large-scale enterprises entering the pig-breeding industry will help ease the disadvantages of retailing households that are vulnerable to market conditions.

Feng Yonghui, chief consultant of China Live Swine Early Warning Network, pointed out that with the rising costs of feed and labor, the income from working outside the home has become higher, and the entire industry has begun to reshuffle. Moderately large-scale pig farms are the direction of future development.

Professor Chen Wuyuan, an expert in agricultural economy at the Sichuan Academy of Social Sciences, also pointed out that “the number of rural pig farmers may be less and less, and the addition of large-scale enterprises with large scale farming is a good complement.” Large-scale enterprises are more resistant to risks and grasp market information faster, so that the supply of pork will not be ups and downs. Perhaps the curse of the "pig cycle" that has plagued Chinese prices for many years is expected to disappear after the swine industry has become large-scale. According to "West China Metropolis Daily"

Currently raising the profit of a pig Breeding cost: 1300 yuan to sell Wholesale price: 1800 yuan Pig income: 400 yuan Profit margin: About 22%

It takes about 7 months from piglet to slaughter