The pig industry in 2023 is facing great changes and challenges, mainly due to the continuous losses of the industry in recent years. In Mr. Wang's report, he pointed out that the reason behind this is that the company's perception of the industry has been skewed. And this year, the pig industryRefactoringThe acceleration has led to some large enterprises struggling due to a lack of strategic emergency funding. Mr. Wang Zhong divided the evolution of the pig industry into six stages: the pioneer period, the growth period, and the great change periodRefactoringPeriod, stable period and decline period, different stages correspond to different stagesProfitDot. InRefactoringperiod, restructurings and mergers and acquisitions occur between businesses as they acquireProfitThe capabilities of the dots vary. And Mr. Wang Zhong**, it will take 2-3 years for the pig industry to enter a stable period. In particular, March-May 2024 may be the most difficult stage for large enterprises, and they will face huge uncertainties.
Under the current new situation of the pig industry, the difficulty of reducing production capacity has become a prominent problem. Mr. Wang Zhong listed four reasons: first, the capacity of large enterprises is seriously idle, which is difficult to sell and rent, resulting in waste; Second, it is difficult to realize heavy assets, which only state-owned enterprises or central enterprises can undertake; Third, enterprises with strong capabilities are still expanding, because for them, bigger and stronger is the direction of future development; Fourth, the betting cycle, that is, the gilts continue to be stable. In the context of the difficulty of reducing production capacity, enterprises will also face multiple pressures such as biosecurity, market risks and capital cut-offs.
The phenomenon of rolling up in the pig industry is inevitable and has been significantly upgraded. This is reflected in the following four aspects: first, more and more enterprises choose the development model of the whole industry chain, from specialization to chain; Second, more and more pig enterprises are keen to go public, with the help ofFinancemeans to achieve development; Third, the decision-making of pig enterprise managers in the future will become more and more important, from people-oriented to elite-oriented; Fourth, the pig industry has shifted from positional warfare to guerrilla warfare, and scale is no longer the only competitive factor, and flexibility has become more important.
In the face of market changes, pig enterprises need to respond from four dimensions: business model, profit model, production model and development model. Mr. Wang Zhong believes that among the six major dividends, the most secure dividend in 2024 is the cost dividend. When choosing a development model, enterprises need to consider market changes and their own capabilities, and give full play to their own advantages. For example,MakiharaAdoption through innovation"Contracting"The assessment and incentive mechanism of COFCO is carried out by using live pigsHedgingto get itProfitWait. In the staged competition of the pig industry, the focus in 2024 will be on extreme costs, and enterprises need to reduce input costs, improve production efficiency and management efficiency.
The pig industry is currently in the midst ofRefactoringPeriod, different stages correspond to different industry situations. Enterprises need to face up to the current dilemma and establish new perceptions and logic. The pig industry needs to strengthen capacity reduction, reduce input costs, and improve production efficiency and management efficiency. In addition, biosecurity risks, market risks and capital cut-offs are also issues that enterprises need to pay attention to.
For me personally, I agree with Mr. Wang Zhong's views on the pig industry. of the pig industryRefactoringIt brings challenges, but it also provides opportunities for business to grow. At this stage, enterprises need to constantly adjust their strategies, strengthen internal and external collaboration, and improve their competitiveness. At the same time, the involution and upgrading of the pig industry also means that the industry has become more professional and refined, and enterprises need to continue to innovate and improve their management level and decision-making ability.
In order to deal with market risks and capital disruptions, I believe that companies can actively seek partners, share resources, and strengthenFinanceThe use of means to improve their own financing ability. In addition, it is also crucial to strengthen scientific and technological innovation and talent training, and only by continuously improving their core competitiveness can they be in the pig industryRefactoringOccupy a favorable position in the mid-term.
In conclusion, the pig industry is in a time full of challenges and opportunitiesRefactoringEnterprises need to strengthen strategic adjustment, reduce costs, improve production efficiency and management capabilities. At the same time, it is necessary to pay close attention to market changes, and actively respond to pressures such as biosecurity risks, market risks, and capital flows. Through continuous innovation and improvement of their own capabilities, enterprises can stand out in the fierce competition and achieve long-term stable development.