Here, I have to mention an official plan-"Implementation Plan for Regulation of Pig Productivity (Provisional)" (hereinafter referred to as the "Plan").
It is clearly stated in the "Proposal" that adjusting the number of fertile sows in each province (city) is the basic means to realize the overall stability of pig production capacity. To put it bluntly, every province has "indicators" that can breed sows. Provinces that fail to meet the target should find ways to increase the number of fertile sows, and those that exceed the target should reduce the number of fertile sows.
This means that the scale field must first "grab the index" with the pig farms in this province, and secondly "grab the cake" with the pig farms in other provinces. Even if we know that there will be little profit in 2022, we should bite our teeth and join the battle for long-term "market share".
With the continuous expansion and competition between pig farms, the pig industry began to enter "involution". As we all know, since the price of pigs will not be too high in the future, we can only rely on our own efforts. For a time, pig enterprises began to fight for technology, capital and contacts to survive in this battle. Only by surviving can we continue to seize the qualification of "indicators" in the future.
It is no exaggeration to say that after this pig cycle, the "profiteering" era of China pig industry will come to an end, and the future will usher in the "meager profit" era. Under the influence of the low pig price, many pig farms, especially retail investors, will choose to quit, which just gives pig enterprises an "opportunity" to seize the market. At this time, everyone will think that they chose to quit because of the low pig price, rather than being squeezed out by anyone. ...
Large pig enterprises have successfully seized this market share, and the "pig giants" know very well that expanding production is not an option, but a must!