Is selling a house better than raising pigs？ A picture of the most comprehensive cross-border pig farming enterprise
Is selling a house better than raising pigs? A picture of the most comprehensive cross-border pig farming enterprise
Pig farming is a hot business. According to statistics from the sauna and Yewang.com, before Vanke established the food business department to lay out the pig farming industry, more than a dozen lay companies have made cross-border attempts.What are their achievements, is selling a house really worse than raising pigs?1.The thunderstorm is small and the pig farming business is not easy to do for a period of time. Except for Vanke, Country Garden, Evergrande and other real estate companies, Internet giants such as Vanke, Country Garden, Evergrande and other Internet giants have also joined in.Judging from the results, most companies are actually “chitting” pig spots, and then announced the results and progress of the pig farming project.Due to the long industrial chain of pig farming, from the intake and proportioning of pig feed, to epidemic prevention, immunization, collection to sales, slaughter, and processing, it involves multiple markets, so laymen must pay more than expected.For example, Netease, which participated in cross-border pig farming enterprises earlier and also had some results, started planning in 2009 and did not conduct the first auction attempt until the end of 2016.And New Hope, COFCO and other enterprises have a certain accumulation in agriculture and feed production, so they can get a good income from the pig industry.2.In the undervalued pig market, the gross profit is comparable to that of the real estate tycoon. The pork market is coveted by many parties, and it is inseparable from the Chinese eating habits since ancient times.For a long time, China has long been the world’s largest producer and consumer of live pigs, with live pig production and pork consumption accounting for more than 50% of the world’s total.In 2019, Chinese live pigs slaughtered more than 5.400 million heads, with more than 4,200 pork production.Due to recent price increases, the size of China’s pork market has risen from nearly trillion in normal years to nearly 2 trillion.Even so, because the Chinese pork market is dominated by retail investors, it is still difficult to avoid the “pig cycle”, coupled with the impact of African swine fever, pork prices in 2019 continue to grow and reach new highs.According to data from the National Bureau of Statistics, the top 20 pig companies in the country accounted for 11% of the entire market in 2019. Among them, Wen’s shares of “combination of enterprises and farmers” accounted for 3%, and Muyuan shares of integrated pig farming accounted for only 1.9%.Therefore, China’s pork imports have grown significantly.According to US Department of Agriculture data, China’s pork imports in 2018 were 156.1 person, accounted for global pork imports (790.June) 19.7%.Affected by the new crown epidemic in 2020, global trade volume was offset, resulting in pressure on the supply of live pig market.Under swine fever, small-scale pig farms have been operating in dismal conditions, the supply gap in the pork market has gradually increased, the price of live pigs has started to rise, and pig-raising companies have gradually returned to profitability.There are 30 pig-raising concept stocks in Flush, and only 4 companies will replace them in 2019. The rest are all profitable. Their net profit makes it difficult for some Internet companies to meet their expectations. They can also compete with real estate leaders in terms of gross profit margin and market value.Not only that, soaring pork prices have also brought low-key pig farmers into the eyes of the public.The Qin Linying family, the real controller of the original shareholding of pig farming Mumu, landed on the Hurun Rich List in 2019, with 1173.The 800 million wealth value ranks ninth.At present, the overall pig farming companies have all mentioned the plan to expand production capacity in 2020.In 2020, the Central Document No. 1 first mentioned that the pig production should be resumed.The country is competing for more large enterprises to enter the pig breeding industry.With the imbalance between supply and demand in the market, China’s pig breeding industry will undoubtedly usher in a good period of accelerating concentration. However, if the cross-strait mountains are separated, whether cross-border pig farming companies can really benefit from it will take time to test.