malaysiavietnamfootballseagames| New Hope and Wen's Shares: The pig breeding business has significantly reduced losses, and improving quality and ensuring profits have become an industry consensus.

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Pig prices show signs of warming up.MalaysiavietnamfootballseagamesAquaculture enterprises turned to cost reduction strategy, A-share listed companies significantly reduce losses in pig farming business, the industry may meet the rising cycle after capacity removal.

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[a number of A-share listed companies have significantly reduced their losses in pig farming business this year] the continued rebound in pig prices has brought respite for breeding enterprises that have been losing money for a long time. By May 10, many A-share listed companies have publicly reported that since the beginning of this year, the company's pig farming business has significantly reduced losses, and some of the time has even made a profit.

According to industry insiders, although pig prices have shown signs of warming up, they should not be completely warmed up.MalaysiavietnamfootballseagamesThey expect the industry to start a new upward cycle only after a further reduction in production capacity and a balance between supply and demand.

Recently, according to the information disclosed by investor research activities of listed companies, pig farming enterprises in 2024 no longer regard scale growth as the primary goal, but turn to improve quality and ensure profits, which has become the consensus of the industry. Industry insiders said that after the fierce competition in the early stage, the pig breeding industry has entered a new era of comprehensive competition in cost, capital and quality.

According to statistics, the average price of live pigs across the country was 15% in April.Malaysiavietnamfootballseagames.1 yuan / kg, an increase of 2. 5 yuan over the previous month.Malaysiavietnamfootballseagames.26%, there is a certain rebound in prices.

Xu Hongzhi, a senior analyst at Brick Agricultural products (000061) Purchasing Network, said in an interview that although pig prices have gradually emerged from the doldrums, the foundation for recovery is not solid and fluctuations are still possible. He believes that the rise in pig prices this year shows obvious phased or seasonal characteristics, and from the point of view of supply and demand, it is not enough to support a fundamental reversal in pig prices, and it is necessary to continue to reduce production capacity to reproduce sows.

Fan Qingqing, a pig analyst, pointed out that pig prices are expected to fall in May. According to the situation in previous years, as the temperature rises, the consumption demand for pork tends to decrease, so it is difficult to improve the demand for live pigs in May.

Fan Qingqing also said that according to the statistics of more than 200 sample farming enterprises, the number of live pigs nationwide is expected to increase in May, an increase of 7.73% compared with April. At the same time, the secondary fattening pigs in the previous fattening may be concentrated in May. As a result, the overall supply of live pigs is abundant in May, and prices may have room to fall further. She believes that it is too early to tell whether pig prices have completely emerged from the downturn.

In the context of this industry, pig farming enterprises are also adjusting their development strategies.

New Hope said in a recent investor survey that the company made an overall monthly profit in April against the backdrop of a pig price of about 15.1 yuan / kg. At the same time, the cost of raising pigs is also falling rapidly. The company said that the previous proactive adjustment was very effective. For the basic management strategy of the pig breeding industry in 2024, New Hope (000876) proposes to improve quality, reduce costs, adjust structure and stabilize scale, and no longer regard scale expansion as the primary goal, but first pursue overall loss reduction or cost reduction.

Wen's shares also said that at present, the company regards the protection of profits as a top priority and is unlikely to significantly increase the number of breeding sows. The company will mainly improve production performance, increase the number of pigs, in order to improve profitability. Wen's shares (300498) stressed that for some time to come, the pig industry may be in a state of weak balance and low profit, and the company will pay more attention to cost control in order to achieve high-quality development.

Xu Hongzhi analysis, pig farming enterprises should not only focus on capacity loss, should also pay attention to the pace of capacity loss and consumer-side changes match. He observed that while pig prices are likely to rebound sharply in 2024, supply is still in surplus compared with the shrinking scale of demand. Therefore, he believes that it is unlikely that pig prices will achieve a substantial reversal and enter a new cycle in 2024, and that the more likely trend is to continue bottoming out until the excess capacity is completely cleared and the market supply and demand is truly balanced.

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