The combined hog sales volume of 21 listed pig farming companies exceeded 1564 ten thousand head in September, while the average sales price for most of them that month was below the cost line. Continued growth in total sales volume on one hand and a month-on-month decline in hog prices on the other form the most objective picture of production and operations in the farming sector this September. For those of us working hard in pig barns every day, the figures reflect the industry’s current cycle as it really is, without embellishment—just the actual state of production and sales.
Looking at the overall situation for the first three quarters, these 21 listed pig farming companies collectively sold approximately 1.43 hundred million hogs, 552 ten thousand more than in the same period last year. Among them, the combined sales volume of the three leading companies—Muyuan, Wens and New Hope—was close to 1 hundred million hogs, accounting for nearly seven tenths of total sales volume. Although the overall scale expanded, some companies adjusted their sales pace. For example, New Hope’s sales volume fell by nearly 15% year on year in the first three quarters, while Zhenghong Technology continued its downward trend, selling approximately 1.5 ten thousand fewer hogs.
September slaughter pace diverges, with most companies proactively adjusting slaughter volumes
Specifically, in September alone, the total number of pigs marketed by these 21 companies was 1564.92 ten thousand head. Year on year, 13 companies maintained growth, while 8 recorded a decline. However, compared with August, 14 companies all reduced their marketings. This was mainly because, after concentrated marketings in August, companies moderately adjusted their production pace. In addition, as pig prices fell significantly in late August, companies made corresponding adjustments according to their own circumstances. Muyuan, Wens and New Hope ranked among the top three in monthly marketings, while Zhengbang Technology also contributed nearly 85 ten thousand head that month.
The September average price did not reach the cost threshold, with the loss per head exceeding three hundred yuan at its highest.
Although the number of hogs shipped is increasing, the average selling price remains low and continues to draw the most attention. In September, 17 companies announced their average selling prices, averaging about 10.66 yuan per kilogram. Of these, only 5 companies saw a slight increase in their average price, while the other 12 companies all saw declines. Zhengbang Technology recorded the largest month-on-month drop, falling from 11.14 yuan per kilogram in August to 10.49 yuan per kilogram. For livestock farmers, prices below cost mean losses. Even for the 13 leading hog companies with relatively good cost controls, the average selling price still failed to exceed the cost line.
Based on an estimated marketed live weight of 120 kilograms, these 13 companies are estimated to have lost an average of approximately 186.2 yuan for every pig sold in September. Losses were around 90 yuan per head for the less affected companies, while the most severely affected may have lost as much as 345.6 yuan per head. Taking the number of pigs marketed that month into account, the estimated combined losses for these 13 companies for the month totaled 18.39 hundred million yuan. Against a backdrop of an overall slowdown, Zhenghong Technology, Aonong Biotechnology, and Kemin Food recorded relatively notable year-on-year increases in the number of pigs marketed in September, reaching 121.47%, 54.20%, and 54.63%, respectively. This reflects the different choices each company made in accordance with its own business plans.
Faced with these objective industry figures, our farmers and professional pig farm staff can all relate from personal experience. Everyone is carefully calculating feed costs and disease prevention expenses for each pig based on market changes. Raising pigs has always involved cyclical ups and downs. All we can do is diligently tend to the pig houses, improve the health of the herd, and stabilize production performance. Regardless of how external figures change, raising pigs well and building a solid foundation are the most fundamental and essential responsibilities of every pig farmer.