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08

2022

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10

Analysis of China’s Live Pig Slaughter in Sept

Source:

OIG+X

Before the Mid Autumn Festival, slaughtering enterprises and pork traders were highly motivated to stock up, but the terminal market sales were lower than expected. Both slaughtering enterprises and traders had a certain degree of inventory overstock. It took some time to digest the inventory after the Mid Autumn Festival, so the slaughter volume after the Mid Autumn Festival was significantly lower than the average level in Aug.

1. Slaughtering capacity of designated pig slaughter enterprises that above the national scale

In Aug, 21.67 million pigs were slaughtered by designated pig slaughtering enterprises above the national scale, an increase of 2.26% MoM.

 

At the same time, it should be noted that the proportion of slaughter volume of designated pig slaughtering enterprises above designated size in the slaughter volume of all designated pig slaughtering enterprises has been increasing, so the slaughter volume of designated pig slaughtering enterprises above designated size does not represent the slaughter volume of the whole industry.

 

2. Slaughter volume of Henan province

In Sept, Henan province slaughtered 1.61 million pigs, a YoY decrease of 18.67% and a MoM decrease of 0.99%.

 

3. Slaughter volume and pig price

In Sept, there were two obvious stocking peaks for slaughter volume before the Mid Autumn Festival and the National Day. The pig price was basically stable before the Mid Autumn Festival and began to rise continuously after the Mid Autumn Festival.

 

4. Slaughter volume of key slaughter enterprises

There are 8 key slaughter enterprises and 16 slaughterhouses in the province. In Sept, 917,500 pigs were slaughtered, a decrease of 6.54% MoM, accounting for 54.94% of the province's slaughter volume, a decrease of 3.26 percentage points.

 

The total slaughter volume of six key monitoring sow slaughter enterprises in Sept was 44,900, an increase of 23.03% MoM, accounting for 2.69% of the total slaughter volume of the province, up 0.53 percentage points compared with the previous month.

 

Before the Mid Autumn Festival, slaughtering enterprises and pork traders were highly motivated to stock up, but the terminal market sales were lower than expected. Both slaughtering enterprises and traders had a certain degree of inventory overstock. It took some time to digest the inventory after the Mid Autumn Festival, so the slaughter volume after the Mid Autumn Festival was significantly lower than the average level in Aug.

 

At the same time, due to the backlog of products in preparation for the Mid Autumn Festival, before the National Day, which was not a long time away, the enthusiasm of slaughter enterprises for products in preparation decreased significantly, which led to insufficient goods in preparation. The slaughter volume on Sept 30, the day before the festival, increased significantly, and the slaughter volume remained at a high level throughout the National Day.