A pound of meat is not as good as a pound of ginger
"Ginger has 12 pounds a pound, and it's gotten worse recently!"
"Do you want to buy meat? Pork is 9 bucks a pound!"
This is the two voices of the food market, but consumers are puzzled. How is pork expensive?
Statistics from emerging markets show that pork prices are still falling. The average wholesale price of white striped pigs was 6.55 yuan/kg on March 21, down 14.38% from 7.65 yuan/kg in the same period of last year.
“This is the lowest price of pork since late June 2010.†Liu Tong, the person in charge of the new market, told reporters that the price of pork began to fall back in November last year. Five months ago, the average wholesale price of white striped pigs was a kilogram. 9 yuan or so. The supply situation of Mao pigs this year is similar to the supply situation in the first half of 2010. The amount of pig stocks soared, causing pork prices to continue to decline. Because of the drop in prices, a large number of white pigs have been stored in the slaughterhouse's cold storage.
The reporter then found out in major supermarkets that the price of meat in many supermarkets was astonishingly low. Wumart's row of sour pork was only 6.98 yuan a pound, while Wal-Mart's skinny legs sold only 8.68 yuan per pound.
Recently, Feng Yinghui, Chief Analyst of Sogou.com, led the team to in-depth investigations in Shandong, Jiangsu, Zhejiang, Jiangxi, and Hunan provinces. The results of the survey showed that the current farmers' losses have reached historically high levels. There are some small-medium-sized pig farm funding chains. Already on the verge of breaking.
Data show that on the 27th the national slaughter price of slaughter pigs averaged 10.75 yuan/kg, down 14% from 12.53 yuan/kg in the same period of last year; pork prices were up to 18.23 yuan/kg, down 16% from 21.82 yuan/kg in the same period of last year. The national pig price ratio was 3.29:1 and the pig/food ratio was 4.5:1, down by 14% and 16% respectively year-on-year. Both were in the red alert zone below the breakeven line. At present, the farmers have also made a loss of 331 yuan per head.
“8 yuan a pound to maintain the cost, now fell to 5 yuan more than a pound, each pig lost a few hundred dollars.†Zheng Wanmin pig farmers told the “China Times†reporter, he thought that the price of meat will rise to the Spring Festival I did not expect to have been falling since December of last year. If we do not produce slaughter, we expect more losses.
“Each now sells 200 pounds of pigs and will have to lose about 400 yuan.†Yu Zhenxing, a large pig breeder in the town of Daxing District, Beijing, told reporters that many small farmers could not continue, and all the pigs were dealt with, further increasing Market supply.
Import pork shock
Domestic pork breeders are miserable, and the news that Shuanghui imported large amounts of pork is like a salt sprinkled on the wounds of pig farmers.
On March 14th, an article on the Ningbo Free Trade Zone website entitled “The First Batch of Imported Frozen Pork in the Ningbo Port of the Shuanghui Group Enters the Bonded Area Warehouse†attracted the attention of many people. The article stated that on the day, a group of 13 containers from the United States were 325 tons. Frozen bone-in pork arrived in Ningbo Free Trade Zone. This is the first time that Shuanghui Group has imported meat from Ningbo Port and even Zhejiang Port.
This news instantly detonated the network. Ye Xiaoxue, general manager of Guangzhou Swine Biotechnology Co., Ltd. Swine Service Co., Ltd., even wrote that the import of pork by Shuanghui was the last straw for pigs.
Compared with the import volume of nearly 600,000 tons of pork in the whole year, the scale of 3,500 tons of pork is not big, but it is indeed a public anger to import pork when the domestic market is so bad.
The reporter interviewed a number of farmers. They summed up the following two reasons for the sharp drop in pork prices: First, farmers are optimistic about the market this year, expand the scale of farming, live pigs are slaughtered, the market supply is too large, and the second is imports. The impact of pork is huge, and the price of frozen pork to shore is even lower than the price of Chinese pigs.
Feng Yonghui said that the country’s hog supply is about 10% oversupply, and excess capacity is at a high level.
"The price of imported pork is even lower than the price of China's pigs, which has a greater impact on us." The import of pork, Yu Zhenxing quite helpless.
Ye Xiaoxue stated that at present, the domestic production level is lower than that of the United States, and a considerable part of the feed ingredients are imported from the United States. The level of pig farming operations in both countries is not at the same starting line.
“The price of imported pork is relatively cheap, which can reduce the cost.†A person in charge of a meat processing company who did not want to be named revealed to the reporter that the US pork is not only cheap but also has a high degree of standardization and is attractive to companies. According to the person in charge, if the company uses imported pork, production costs can be reduced by at least 5%.
Zhu Guangxin, an analyst at Zhuo Chuang Information Pig Industry, said that China’s pork imports have indeed been increasing in recent years. According to calculations, there are 510,000 tons of pork in China that are overcapacity. Although the export volume has increased, it is far less than imports. Imports have increased year by year, making the impact on imported pigs in China's live pig and pork markets more and more.
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