This year's pig ** has been sluggish, which is a huge blow to farmers. Due to the oversupply of the market, the pig market continues to be large, and the profit margins of farmers are greatly compressed and even losses. As a result, many farmers are in debt and even at risk of bankruptcy.
This year, in addition to the downturn, farmers are also facing various epidemics. Whether it is winter flu or African swine fever, it has brought huge losses to farmers. Many farmers have their pigs dying in just a few days, leading directly to their economic collapse. These difficulties have left farmers with a loss of confidence in the future, with many saying they will no longer continue to raise pigs or even refusing to get involved in the industry again.
The sharp fluctuations in hogs are the result of an imbalance between supply and demand. In the normal pig cycle, when the pig price is high, it will trigger an increase in breeding enthusiasm, and the sow herd will begin to increase, which in turn will promote the increase in pig reproduction. However, when there is a surplus of hogs, the market demand cannot keep up, and the pig price begins.
The current situation is that the number of pigs in the herd has exceeded the level of a normal year, coupled with the large-scale investment in large-scale farming, resulting in an increase in the proportion of high-quality sows, and the number of pigs reproducing has also increased compared to previous years. This makes the market greater than the demand, and the slaughterhouse is forced to lower the purchase price, resulting in the current annual hog ** is not enough to cover the cost.
In order to restore the market balance, it is necessary to eliminate a large number of sows and reduce the number of piglets reproduced. This process takes time and is expected to be gradually realized over the next 6 months. Only when the balance of supply and demand in the market is restored, can the hogs rebound.
In recent years, the pig industry has ushered in a large-scale influx of capital, which has triggered the disorder of the market. Due to the sudden increase in pig profits, a large amount of capital such as Internet companies and real estate companies have poured into the pig industry, coupled with the support of national financial subsidies, resulting in the rapid expansion of pig production capacity, and the proportion of large-scale breeding has exceeded 50%.
Compared with the past, the production capacity of large-scale farming has expanded by an order of magnitude, which makes the fluctuation of pig ** more dramatic. Large-scale breeding enterprises such as Muyuan, New Hope and other groups continue to expand their production capacity, bringing together the production capacity of countless free-range farmers. Both the reduction of production capacity and the increase of production capacity have had a huge impact on the market, making the volatility of pigs continue to increase.
In addition, the expansion of large-scale farming has also brought technological and cost changes to the industry, but it has also intensified the competition for capital and interests. The excessive pursuit of profits eventually leads to the disorder of the market and the creation of industry monopolies. This is also an important problem faced by the pig industry at present, how to limit the disorderly expansion of capital, maintain the stability and fairness of the market, so that the whole industry can develop benignly, is the subject we should think about.
In the face of the current predicament of the pig industry, we need to think and take corresponding measures to solve the problem. First of all, the relevant departments should strengthen supervision and regulation to prevent disorderly expansion of capital, stabilize the market, and protect the interests of farmers. Secondly, strengthen training and guidance to improve the technical level of farmers, so that they can cope with market changes and the impact of the epidemic. It can also strengthen the organization and service of industry associations, provide more support and help for farmers, and jointly promote the development of the industry.
In addition, corresponding support policies can be introduced to reduce the economic pressure on farmers, encourage them to continue the pig industry, and stabilize the industry. At the same time, it is necessary to strengthen the transparency of market information, improve the accuracy and timeliness of supply and demand, and help farmers make reasonable business decisions. At the same time, it is also necessary to promote the transformation and upgrading of the industry, strengthen technology research and development and innovation, improve production efficiency and quality, reduce breeding costs, and enhance the competitiveness of the industry.
In short, the current downturn in the pig industry is a huge test for farmers, but it is also an opportunity for transformation and development. We need to work together to find feasible solutions through the support of the industry and the collaboration of the industry, stabilize the market, and restore the healthy development of the industry. Only in this way can we ensure the stability of pigs, ensure the meat safety of the people, and realize the sustainable development of the pig breeding industry.