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2022

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11

The Pig Breeding Industry Find More Concentration Ratio in 2022

Source:

Mysteel

After the Spring Festival, the sales volumes for pig breeding companies first decreased and then rose from Mar to Oct, impacted by the de-overcapacity last year.

 

After the Spring Festival, the sales volumes for pig breeding companies first decreased and then rose from Mar to Oct, impacted by the de-overcapacity last year. Last June saw a peak in breeding sows, leading to optimization for production. In Mar and Apr, the group farm sold 11.43 million and 11.34 million pigs, reaching the peak of this year. Afterward, it began to decline MoM to 9.22 million in July.

 

The group farm optimized and culled the sow population structure, with a prominent increase in LY sows, coupled with the high mating rate at end-2021. Thus the selling volumes stopped declining to rise after Aug 2022. In Oct, the group farms' selling volumes increased slightly for 3 consecutive months on a month-on-month basis, surging to 10.28 million in Oct. The cumulative from Jan to Oct reached 98.74 million with a completion rate of 81.74%.

 

Compared with private farmers, breeding group breeding enterprises have capital, technology, and other advantages, a strong ability to control ASF and other biological diseases, mild capacity reduction, and relatively fast recovery. Thus their market shares continue to increase. The sales volumes in the top ten listed pig enterprises in Q1, Q2, and Q3 are 2,828 million, 6,004 million, and 8,846 million, accounting for 14.46%, 16.41%, and 17.00% of the national volumes respectively, increased by 2.8 p.p. compared with end-2021.

 

This year, the breeding industry has found a steady improvement in its concentration ratio. At present, group farms all have plans to increase production capacity. It is estimated that by 2025, the market share of listed pig enterprises is expected to reach 30-40% or even higher.