Why do experts say that raising pigs in 2019 wouldn’t make any profit? Has pig farming entered an era of meager profits?

As the title suggests, after 2019 Raising pigs It's highly likely we're entering an era of thin profits, for the following reasons:

　　1. Scalability Pig farm Rapid Expansion

　　In the past two years, many free-range farmers have been forced to stop raising pigs due to environmental pressures. Meanwhile, large-scale pig farms—often promoted as investment projects in certain regions—are rapidly expanding, showing signs of a major leap forward. Currently, large-scale pig farms are becoming increasingly prevalent across China. Live pigs The proportion of large-scale farming is steadily increasing, and when pig farming becomes concentrated in the hands of a few, profits are essentially locked in. Meanwhile, slaughterhouses and farms increasingly act as checks on each other, pushing pig farming into an era of razor-thin margins.

　　2. Production performance gap narrows

　　As domestic pig farming levels have improved, small-scale farmers' production results have already approached or even surpassed those of some large-scale pig farms. Meanwhile, the gap in production performance among different farms isn't significant, resulting in modest profits for each—meaning none of them are making much money.

　　3. Pig Cycle

　　Although the market conditions in 2017 were not high, overall Pig farm Everyone is making money—2018 marked the first year of the pig cycle downturn, yet many pig farms still had sufficient funds to hold steady. Sow De-capacity measures won't be too severe; on the contrary, some pig farm owners will actually take advantage of the low base price of live pigs to scoop up breeding sows, which means the market conditions in 2019 may not see a significant rebound.

　　4. Barriers to Live Pig Imports Pig prices Rising

　　2016 was the year with the highest volume of live pig imports in recent years, though imports declined somewhat in 2017. This was because pig prices reached their peak in 2016 but then began to fall in 2017. Meanwhile, some slaughterhouses found it profitable to source meat from imports. As soon as pig prices start to rise again, these companies are likely to ramp up import volumes even further in an effort to curb price increases.

　　Written by / Guoranyou