When will the pig price stop falling below 7 yuan?
What is the price of pigs?"Ups and downs"？
Today, pork has entered the coldest pork cycle in history, and it has fallen below 7 yuan catty, a decline of nearly two-thirds, and pork companies have suffered serious losses. Why did pig prices fall like this?
First, the pork market is oversupplied. The data shows that at the end of November 2023, the number of fertile sows in the country exceeded the normal holdings, while the number of newborn piglets increased rapidly year-on-year, resulting in increased pressure on the pork market and a further downturn in pork.
In addition, the last round of profitable pig enterprises did not actively take measures to digest production capacity, but chose to reduce losses by reducing production. This has led to a relatively slow reduction in production capacity, which has exacerbated the pork boom.
At the same time, in order to pursue large-scale breeding, some pig enterprises blindly expand when pork is high, resulting in overcapacity. When ***, these companies are under tremendous pressure, and high debt ratios exacerbate corporate losses.
In short, factors such as the imbalance between supply and demand, overcapacity, and insufficient expansion of pig enterprises have caused pig prices to fall to their current lows.
How long will pig prices** last?
At present, there is still no obvious sign of easing pig prices**, so pig prices** may continue for some time.
First of all, the demand side factors limit the possibility of pig prices**. Affected by factors such as the epidemic and changes in consumption habits, the demand for pork has declined among some consumers, resulting in weak market demand. Although there have been some recent activities and price reduction measures, the momentum of pig prices is still relatively limited for the entire market.
Secondly, supply-side issues have also limited the recovery of pig prices. Although some pig enterprises began to reduce production and reduce expenditure, due to the relatively slow speed of capacity reduction, the amount of low-priced pork is still large, and it is difficult to support pig prices.
In addition, there are still some uncertainties in the current pork market, such as the epidemic and politics, which also put some pressure on the trend of pig prices.
Therefore, judging from various factors, the low pig price may continue for a while. Due to the fierce competition in the industry and the complex market environment, pig enterprises must do a good job in controlling costs and adjusting production capacity in order to survive and develop in the low-price pig cycle, so as to improve the anti-risk ability of enterprises.
Will there be a winner in the coldest pig cycle?
In the coldest pork cycle, almost no one stands out. In addition to consumers who like to eat pork can benefit from the lower **, pig companies' profits have declined, farmers have reduced production, and related industries are also facing greater pressure.
For example, some pig companies blindly expanded before the coldest pig cycle arrived, and as a result, they are now facing huge losses and balance sheet problems, and some are even facing the risk of delisting. These companies did not control the risk well, and in the face of market fluctuations, the excessive pursuit of scale led to a large number of pig prices, and their own operations were in trouble.
However, there are also companies that have made smart decisions and adjustments during the cold period to save themselves by cutting costs, improving efficiency and reducing production to meet market challenges. After experiencing short-term difficulties, these companies may be more resilient and able to usher in a warm spring after a cold winter.
In short, the winners of the coldest pig cycle are a few, and most pig enterprises and related industries are facing challenges and difficulties. Only those enterprises that do a good job in risk control and reasonably adjust production capacity can maintain stable and sustainable development in the cycle and have the last laugh in the future market competition.
Conclusion. The price of pigs fell below 7 yuan, which means that pig enterprises are in a state of great loss. The main reasons for pig prices are the imbalance between supply and demand, overcapacity, and insufficient expansion of enterprise scale. The current pig price may continue for a period of time, which requires enterprises to do a good job in cost control and capacity adjustment, and look for more development opportunities on the basis of reducing costs and increasing efficiency. In the coldest pig cycle, almost no one can qualify, and only enterprises that do a good job in risk control and strategic adjustment can maintain stability and sustainable development in the pig cycle. With the advancement of the pig cycle, after the cold winter will usher in a warm spring, as long as there is enough strength and strategy, pig enterprises still have a chance to succeed in the future market competition.