pork market – CRI Report https://www.cri-report.com market research vender! Wed, 18 Aug 2021 06:18:33 +0000 en-US hourly 1 https://www.cri-report.com/wp-content/uploads/2021/01/cropped-shcrilogo-c.jpg pork market – CRI Report https://www.cri-report.com 32 32 Analysis of China’s Pork Industry Chain https://www.cri-report.com/industry-analysis/food-beverage/analysis-of-chinas-pork-industry-chain/ Mon, 02 Nov 2020 02:07:52 +0000 https://www.cri-report.com/?p=9239 The overall market concentration of the slaughter market is low, and the production capacity of large slaughter companies has not been fully released.

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]]> China is the world’s largest pork producer and consumer, and the huge pork consumer market has also cultivated a complete pork industry chain. According to statistics from the U.S. Department of Agriculture, China contributed 48% of the production and 50% of the consumption of 110 million tons of pork in the world in 2017. China’s per capita annual pork consumption is also significantly higher than the world average.

The pork industry chain can be divided into three major business segments, namely upstream pig breeding, midstream slaughter and downstream meat product consumption.

Upstream of the pork industry chain-pig breeding

Pig breeding companies purchase breeding pigs, feed, vaccines and other products, and produce fattening pigs through the steps of sow littering and piglet fattening.

Regional characteristics

On the other hand, the distribution of pig production capacity in China is extremely uneven. The main production areas are mainly concentrated in the Sichuan Basin, the Huanghuai Valley (maize and wheat main production areas) and the middle and lower reaches of the Yangtze River (main rice production areas). In recent years, the amount of breeding in the Northeast has gradually expanded.

China’s pork consumption also has certain regional characteristics. People in the northern regions tend to eat beef and mutton instead of pork. The per capita consumption of pork is very obviously low in the north and high in the south, especially higher in the economically developed southeast coastal regions.

Industry pattern

China has a number of enterprises with considerable production capacity in the breeding industry, but due to the large base of the national pork market, the concentration of breeding is still very low at this stage. Under the fragmented market structure, some large-scale breeding enterprises can only affect the price of live pigs in a few areas, and the national leader has not yet emerged.

Midstream of the pork industry chain-pig slaughter

One end of slaughter is connected to upstream breeding, and the other end is connected to downstream meat product consumption, which is a key link in the pork industry chain. The profit of a slaughter company is closely related to the profit per slaughter head and the slaughter volume, and is directly affected by multiple factors such as upstream live pig prices, downstream meat prices, slaughter unit costs, and live pig supply.

Industry pattern

The overall market concentration of the slaughter market is low, and the production capacity of large slaughter companies has not been fully released.

Downstream of the pork industry chain-meat processing and sales

Pig slaughter companies purchase fattening pigs for slaughter and process them into fresh frozen meat, part of which is sold directly to end consumers, and the other part is used to supply downstream meat processing companies. Meat processing companies purchase pork to carry out product deep processing, and finally form low-temperature meat products and high-temperature meat products, which enter the hands of consumers through supermarkets, stores and other channels.

Related report: https://www.cri-report.com/product/research-report-of-import-of-pork-in-china-2020-2024/

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]]> Prospect and Future of China Hog Raising Industry https://www.cri-report.com/industry-analysis/food-beverage/prospect-and-future-of-china-hog-raising-industry/ https://www.cri-report.com/industry-analysis/food-beverage/prospect-and-future-of-china-hog-raising-industry/#respond Fri, 16 Jun 2017 07:48:39 +0000 https://www.cri-report.com/?p=12 China’s hog raising industry is mostly backyard raising at small scale. Since 2005, the opportunity cost of emigrating to urban areas for work has increased and environmental regulations have intensified. As a result, the number of backyard raising households declined substantially and hog raising is now of larger scale. As of 2015, more than 50% of hogs were slaughtered at farms with more than 500 hogs going to market per year. Large-scale production has huge room to improve. In the U.S., the process of scaling up hog raising has almost…

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]]> China’s hog raising industry is mostly backyard raising at small scale. Since 2005, the opportunity cost of emigrating to urban areas for work has increased and environmental regulations have intensified. As a result, the number of backyard raising households declined substantially and hog raising is now of larger scale. As of 2015, more than 50% of hogs were slaughtered at farms with more than 500 hogs going to market per year.

Large-scale production has huge room to improve. In the U.S., the process of scaling up hog raising has almost finished and the share of CR10 hog companies has reached 41%. By contrast, China’s largest hog raising company, Wens, only takes up 2.4% of the market.

The industry enjoyed a good year in 2016. In early June, the hog price hit a record high of 21CNY/kg. Meanwhile, corn prices were in the decline, enriching the profits of hog raising. However, environmental concerns and the removal or moving of hog farms in southern regions dampened replenishment of hog stock, continuing the decline of sow population. In January, 2017, the inventory of sow decreased to 36.51 million, a new low since 2009. Delayed restock of sow will result in decreased pig supply a year later. Therefore, it is expected that China’s hog supply will not be easily increased in 2017, extending the prosperity of the industry.

Imports surge from the difference between international and domestic hog prices. The impact of “foreign pork” should be noted. In 2016, China imported 1.62 million tons of pork, up by 108% YOY. The average import price was only 13 CNY/kg, far lower than domestic prices. The price difference has not yet narrowed, thereby might result in continued increase in pork import in 2017. This will bring impacts on domestic hog supply and hog prices will find it hard to hit another high.

CRI considers in 2017, hog prices will slowly decline with fluctuations. Overall profitability is still promising and the annual average price is expected to reach 15-16 CNY/kg.

Related reports:

Report on China’s Hog Production and Pork Market 2017-2021

As the output volume of pork fails to meet the domestic demand in China, the import volume continues to rise.

Research Report on China’s Hog Production and Pork Market, 2012-2013

China is widely recognized as a big hog producer. In 2012, hog stock reached 462.94 million, including 50.68 million sows.

A-Share Listed Dairy and Meat Companies – Profiles and Financial Data

The fast growth of the dairy industry and the meat processing industry will sustain given China’s economic development and population increase.

Research Report on China Foot-and-mouth Disease (FMD) Vaccine Industry, 2014-2018

The market competition will be modest in the next 3-5 years due to high technical barriers of direct selling FMD vaccines and the small number of participated enterprises while the profit margin will remain at high level.

China Feed Industry Overview, 2017-2021

According to CRI, the aggregate market concentration rate of top 5 enterprises in the growing feed industry was about 10% in 2015.

Research Report on China Corn Industry, 2015-2019

According to official statistics, China’s corn yield in 2014 was 215.65 million tons, decreasing about 1.3% compared with last year.

Research Report on China Corn Industry 2016-2020

According to official statistics, China’s corn yield in 2015 was 224.58 million tons, increasing about 4.14% YOY. Corn has become China’s most important variety of food crop.

Research Report on China’s Cattle Production Industry and Beef Market, 2012-2013

Before reform and opening up, cattle were always treated as servant instead of meat. Chinese government actively encouraged peasants to feed cattle on straws not until the early 1990s in order to decrease straw waste

Research Report on China Wheat Industry, 2015-2019

As one of the most important grain varieties in the world, wheat reported a yield of 126.21 million tons in 2014 in China, increasing 3.5% year on year.

Research Report on China Poultry Raising Industry and Egg Market, 2010-2019

Before 1978, egg commercialization was rare with egg always in a short supply. Ever since reform and opening-up, egg industry has flourished in China

Research Report on Beef Cattle Breeding Industry and Beef Market in China, 2011-2020

According to CRI, the legal import volume of beef in China reached 473,800 tons in 2015, 59% increase than 2014. The value of import surpassed USD 2 billion.

Research Report on China Beef Cattle Farming Industry and Beef Market, 2010-2019

Before China’s reform and opening-up, cattle had been mainly kept for draft purpose. In the early 1990s, economic reform aroused farmers’ enthusiasm,

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