Newsletter summary

The pig farming industry in the United States has gone through three stages of development, and China is currently in a period of scale expansion. Scale and integration is the development direction of pig farming in China, which has the advantage of reducing cost and increasing efficiency, but there are differences in cost and market between China and the United States. Risks include non-plague, extreme weather and feed price uncertainty.

Text of news flash

Since the 1980s, the pig farming industry in the United States has experienced three major stages of development: the withdrawal of retail investors, the accelerated expansion of large-scale farms and the formation of scale. Under the contract systemHorizonblockchaingamesincThe professional division of labor has become the mainstream. At present, the scale of pig farming in China continues to improve, from 2017 to 2022, the proportion from 46.Horizonblockchaingamesinc.9% increased to 65.1%, showing a development momentum similar to that of the second phase of the United States. Scale and integration will become the development direction of pig farming in China. Through economies of scale, the market share of CR10 pig production in China will reach 2022%, while the market share of the United States in 2017 has reached 41.0%. Looking to the future, China still has a lot of room for improvement in this area. At the same time, through the extension of vertical integration of the breeding end, it is expected to open up the slaughtering processing and channel sales links, further enhance the profits of the industrial chain and enhance profitability. There are long-term differences in cost and market between Chinese and American pig farming industry. Affected by population structure and feed prices, the cost of pig farming in China is expected to be higher than that in the United States for a long time. In addition, due to the differences in the structure of domestic and foreign exports, the pig price cycle between China and the United States can not be simply compared. Low-carbon consumption and animal welfare culture in the United States may reduce pork consumption, while China is expected to maintain traditional pork consumption. Investors should be on guard against the uncertain risks of non-plague, extreme weather and feed prices.