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Stable price of hog supply and “combination punch” to speed up the recovery of hog production

来源: 证券日报 2019-12-23 10: 29: 20Source: Securities Daily

The Central Rural Work Conference held recently pointed out that it is necessary to speed up the restoration of pig production, fully implement the provincial general responsibility and the "basket of vegetables" mayor responsibility system, and implement various policies and measures to support pig production. In addition, we must pay close attention to agricultural production to ensure supply, accelerate agricultural supply-side structural reforms, and increase farmers' income and rural revitalization. It is necessary to speed up the restoration of live pig production and ensure a stable supply and price.

Pig production and pork prices have always been the focus of attention. Recently, many departments and localities have introduced a series of policy measures to support pig production. At the same time, many A-share listed companies have also announced investments to expand the scale of pig farming.

"The Central Economic Working Conference and the Central Rural Working Conference both proposed the acceleration of the restoration of live pig production, indicating that the central government attaches great importance to the issue of people's livelihood and consumption, especially the vegetable basket project." This round of tight pork supply has both external and internal causes. Therefore, it is necessary to implement various policies and measures to support live pig production, alleviate the adverse effects caused by the fluctuation of the pig cycle shortage, and restrain the trend of rising pork prices as soon as possible.

At present, many departments have deployed a new round of measures to stabilize the supply of pigs. Among them, on December 17, Meng Wei, a spokesperson for the National Development and Reform Commission, said that he would increase hog production and continue to increase support for related projects from the central budget; on December 19, the Ministry of Commerce stated that it was organizing the market with relevant departments. Put 40,000 tons of central reserve pork; Recently, the Ministry of Agriculture and Rural Affairs issued the "Three-year Action Plan to Accelerate the Recovery and Development of Hog Production", which required to ensure that the production capacity was basically restored to near-normal levels by the end of 2020, and normalized by 2021.

At the same time, local governments are speeding up. As of now, documents have been issued in 31 provinces across the country, detailing policies for supporting pig production, and forming a strong driving force to resume pig production.

Guo Yiming, the investment consultant director of Jufeng Investment Gu, told the Securities Daily that from the perspective of economic and social development, stable production of pigs and stable supply and demand are particularly important. Since November this year, with the efforts of the central and local governments, the national pig production has improved overall, and both the pig herd and the fertile sow herd have stopped falling and rebounded. On this basis, accelerating the recovery of pig production and implementing various policies and measures to support pig production will help to strengthen confidence again and ensure that all tasks such as pig production are carried out in an orderly manner.

However, in the view of Liu Chenhan, chief analyst of Northeast Securities Research's solid income, near the end of the year, when the Spring Festival in January of the following year is added, the demand for meat is bound to surge, and pork prices are expected to rise in December.

The policy supports speeding up the restoration of live pig production, and at the same time is conducive to the business development of relevant listed companies. Liu Xiangdong said that listed companies that are mainly engaged in agricultural and sideline products will make full use of this opportunity to renovate agricultural infrastructure, promote enterprises to improve quality and efficiency, and strengthen their ability to resist risks.

On December 17, Luo Niushan issued an announcement on investing in Sanya Yazhou pig breeding project. The total investment of the project is 325 million yuan. Three 2400 basic sow one-stop production lines will be built. Ten thousand.

New Hope also announced a few days ago that the company has decided to continue to increase investment in pig breeding business and build 9 pig breeding projects with a total investment of 8.95 billion yuan. (Reporter Bao Xing'an)

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