Author: Sun Bo.
In 2023, the pork market is facing unprecedented changes, the wave of large-scale breeding is sweeping, many people think that a new era of China's pig industry has come, but the current long-term downturn in the pig cycle still makes "the vast majority of pig practitioners" doubt the future, and we have also doubted whether the "current pig environment" can help the "pig industry" gradually get rid of the haze of losses and enter a new era full of hope.
In the case of the overall operating pressure of the industry, many breeding enterprises left the market, and large pig enterprises quickly made up for the vacated market, resulting in an increase in the threshold for subsequent market entry, and the overall promotion of the process of large-scale pig breeding, the data show that the scale of pig breeding in 2023 will reach 68%, an increase of 21% over 2017. In particular, the growth rate of pig scale in the past two years has been about 3%, and the rapid scale process has led to the failure of the previous pig adjustment mechanism. Judging from the law of the pig cycle in the past, after experiencing losses, pig prices began to rise, and the current large pig enterprises dominate, in order to "market share", it is difficult for large pig enterprises to reduce production capacity, although this increases the ability of the entire industry to resist risks, but, through market regulation to the production capacity of the difficulty greatly increased, that is to say, it is difficult for pig prices to rise in the short term.
At the beginning of 2023, many large pig enterprises, institutions and experts failed to change their thinking, believing that under the continuous loss, pig prices began to rise, and then the market entered a new pig cycle, which will also lead to strategic mistakes in the entire industry, resulting in continuous losses in the industry. Under the dual pressure of pig prices and rising breeding costs, pig enterprises are looking for new ways to survive. Some through the integration of resources, to achieve large-scale breeding, improve production efficiency;Some of them enhance their financial strength through active financing;Others choose to adjust their targets to respond to market changes.
Times.
According to the data of the Ministry of Agriculture and Rural Affairs, the current scale of pigs accounts for nearly seventy percent, and the breeding has been unable to have a greater impact on the market, and the original accounting of the pig cycle has become a thing of the past, so the new order pattern has quietly begun, in June 2023, the four major pig enterprises have tried to launch the "mutual non-poaching convention", which is actually a disguised "industry alliance", which is equivalent to testing the whole society in the "people's livelihood field" The attitude of the corporate alliance, once this change is implemented unhindered, may raise concerns about monopoly and unfair competition in society. There will also be concerns about whether this will lead to an over-concentration of resources, leading to market monopolies to the detriment of small businesses and consumers, and whether such industrial alliances will genuinely contribute to fair competition in the market.
In the current pig industry, large-scale pig companies tend to focus on maintaining relationships with their peers in the industry, but neglect to focus on consumers. This makes many large pig enterprises do not fully open the public relations model, failed to fully convey the advantages of the enterprise, but passively follow the pace of the market, especially at present, many pig enterprises extend downstream, layout the entire industrial chain, and begin to pay attention to direct contact with consumers. This indicates that companies are aware of the critical role of consumers in the entire value chain, and it also means that companies need to communicate and interact with consumers more actively.
The pig industry has gone through a crossroads, and the market has clearly chosen the path of large-scale development. Although some may be reluctant to admit it, the change in market share cannot be ignored, and we must accept that our time has passed. The era of high income through pig breeding in the past has ended, and the first person engaged in pig breeding in the future will be more dependent on large-scale breeding enterprises to obtain income from cheap labor through cooperation.
Large pig enterprises will gradually move into the spotlight, and will face a more severe test. Especially in the case of the macro environment has not improved significantly, the daily fixed consumption expenditure cannot be too high, which puts forward higher requirements for the healthy development of the industry. We believe that 2024 will mark a new era for the pig industry, and large-scale farming will become the mainstream. In this new era, farmers need to pay more attention to efficiency, cost control and synergy with large pig enterprises.