Some consumers are puzzled by the loss of pork stalls. The reason is that the price of pork is so good now, even if it can't make a lot of money, it won't be worse than before. However, this is not the case. The butcher is really a hard worker.
First of all, the high price of pork does not mean the high price difference between wholesale and retail. In other words, the higher the price of pork, the higher the wholesale price of striped pigs. There is no skyrocketing pork price, and the wholesale price of white pigs has increased slightly or even not. Wholesalers are not philanthropists, let alone fools.
Secondly, the higher the price of pork, the harder it is to sell pork. For example, pork retail stores used to sell/kloc-0 pigs, but now they may only sell half of them. Although the total income from selling pork has not changed much, the gross profit has decreased significantly. According to the data from Beijing Xinfadi, the average daily market volume of white striped pigs in August was 1 657.86, which was lower than that in early August, with a decrease of 1 2.13%. In addition, the proportion of returned pigs increased by 5%- 10%. It can be seen from these data that even in the north, Guangzhou and Shenzhen, despite the strong purchasing power, pork consumption has dropped sharply.
Thirdly, there are costs in operating pork stalls, such as store rent, water and electricity costs, labor and so on. Suppose the daily cost is 200 yuan, and the gross profit is 300 yuan/head. I used to sell a pig a day, but now I can only sell half a pig. You will find that in the past, the net profit could be 100 yuan/day, but now you have to lose 50 yuan every day.