Under the leadership of many parties and the temptation of high profits from pigs, the majority of pig farmers have basically got rid of the serious impact of African swine fever by the beginning of 2021, and their pig production capacity has gradually recovered to the level before the outbreak of African swine fever in 2017. The status of pig farming. Because the current pig production capacity has been increased to the highest level, there is excess pig production capacity. This is the main reason why the price of live pigs has fallen within the range of 10 yuan per kilogram. The cost of raising pigs is gradually increasing, and the profit of pig raising is close to zero. So far, feed prices in various places are still high, with corn prices still at 1.50 yuan/kg, soybean meal prices rising to 1.80 yuan/kg, and finished pig feed generally higher than 1.50 yuan/kg. In recent months, African swine fever has continued to appear sporadically in various places, causing pig farmers' epidemic prevention expenditures to gradually increase exponentially. These factors contribute to the increased cost of raising pigs. In addition, the gradual decline in pig prices in various places has caused a significant squeeze on pig profit margins, which are currently close to zero or partially experiencing negative growth.
The profits of non-self-raised pig farmers have experienced negative growth, and pig sales have become increasingly severe. Nowadays, pig farmers in various places raise their own pigs. Because of the low cost of piglets, most pig farmers' profits are around 58 yuan per piglet. But for those pig farmers who do not breed themselves, the cost of piglets is too high, and the profit from pig raising has been lost by about 45 yuan per pig. Therefore, many non-self-breeding pig farmers have reached serious losses, and then the phenomenon of selling pigs gradually appeared. This is an important reason for the current oversupply of pigs. The off-season for pork sales has entered a substantial period, and the oversupply of live pigs is serious. The 50-day holiday has passed, and the off-season sales of pigs and pork in various places have entered an important period of sharp off-season. Therefore, the number of pigs on the market is still gradually increasing, while the demand is gradually decreasing. There is a serious oversupply of live pigs on the market, resulting in overcapacity of live pigs. In addition, May has entered the traditional off-season for pork sales. The supply of pork in the market exceeds demand and there is a surplus of pork, which inhibits the listing of live pigs. Therefore, the arrival of the off-season for pork sales is also an important opportunity for pig surplus and an important reason for the decline in pig prices.
Affected by various factors, pig farmers in various places have basically come to an end and entered the pig fattening stage. At present, there is a serious shortage of piglet supply in various places, which has caused the price of piglets to skyrocket, which has reached a point that is difficult for ordinary pig farmers to accept. If a large number of columns are added, the value of raising pigs will be completely gone, and the profit margin will be suppressed too narrowly, which is unacceptable. Therefore, pig farmers across the country gradually began to stop raising pigs, and the focus of pig raising shifted from pig raising to fattening pigs. This will inevitably increase the number of fattening pigs, and pig slaughter is imperative. In addition, the overall trend of pig prices in various places is downward. After pigs are fattened, the profit from early slaughter is always higher than that from late slaughter. In this way, the number of pigs gradually increased, the supply of pigs was sufficient, and the price of pigs began to fall like a cliff.
Affected by a variety of factors, pig farmers everywhere are braking and unwilling to sell in order to avoid losses caused by the market downturn. After the Spring Festival, pig farmers around the world began to replenish pigs on a large scale, and the focus of pig farming was on replenishing pigs. For fattening pigs, when the price of pigs falls, they all adopt an attitude of restricting the sale of pigs, and the reluctance to sell increases, resulting in a gradual increase in weight of fattening pigs, excessive feed consumption, and increased costs. As a result, there are too many fat pigs on the market and the market supply is very sufficient. The pork market is in the off-season after the Spring Festival, and demand is insufficient. This will inevitably lead to an oversupply of pigs, and it is not surprising that pig prices have fallen sharply. This is an important reason for the sharp decline in pig prices in various places.