With the end of the last cycle of pigs, the price of pork has fallen “crawling” since the second half of 2021, putting pressure on the domestic pig farming industry. Pigs indicate higher farming costs in 2021, reduced productivity and more difficult overall operation. Looking ahead to 2022, pigs of scale will look for new profit growth points through internal dives and downstream industrial chains. This time, the xinhua bank went into xinjiang vi and maharahara shares, as well as jungbong science and technology, to initiate an exclusive dialogue with the secretary-general on the direction of production in the new year, the cash flow on account, and the space for the survival and development of pigs。
Q: what is the business development plan for 2022, and is there a concrete expansion plan
The secretary-general of the wynn shares stated to xinhua that the loss of the raw pigboards was due mainly to a substantial increase in industrial output and a new coronary epidemic that weakened consumption. “it has been widely accepted in the industry over the years that the african swine plague has not had a significant impact on the recovery of the country's raw pig output, so it has been adding to the output, with a large drop in the price of the raw pig from a cliff in april 2021. The price of pigs was high when they were bought in february and march, and when they were six months old, they were not as expensive as pigs, amounting to a loss of white breeding.” he also stressed that, as the impact of the african swine plague weakened, the production rate of the wein raw pig industry was gradually recovering, with an output of 22. 29 million in 2018, a projection of 12 million head to 13 million head in 2021, and a target of 17 million head to 18 million head in 2022, with an opportunity to recover output by the end of 2018。
The representative of new hope six and the representative of securities stated that for the new hope, the current capacity needs to be maintained in 2022, with a focus on internal skills, productivity efficiency and lower production costs, and strict control over new capacity investments. In terms of production, there will be a certain increase in the number of pig farming columns in 2022. However, this increase is more based on existing production capacity, which, by increasing production efficiency, has led to the improvement of indicators such as the full production rate, the success of the production of the mother and pig production, and the increase in the efficiency of the fat. This increase in production is not simply a result of the build-up of market shares, but rather helps to reduce the distribution of inputs from various assets and hence the cost of farming。
According to the qin army, the chimwon shares are now set up in 25 provinces of the country (municipalities, autonomous regions) and there will be some increase in output in 2022, mainly as a result of the release of new farms in 2021, as there is a cycle between pigs and pigs. In 2022, there will be some expansion plans, but the pace will be determined by market conditions, and the final range of pasture farming will increase to around 100 million head。
Q: what are the next predictions about the price of pork
New hope six and the securities service representative baek wukbo argued that the whole industry was still at the bottom of the cycle in 2022, and that it was expected that after spring festival, the price of pigs would go down in a round, reaching its lowest point in the year by mid-year, and that there might be a trend reversal by the end of 2022, moving to the upper zone。
“the price of pork is now essentially in the bottom area. Even when prices are not high, they will be large before spring. However, it does not rule out a seasonal fall, or a fall of $12/kg, or even more extreme.” he also judged, on the basis of available data, that pork prices would improve in the second half of 2022.”
According to the secretary-general of the windsor shares, with the onset of the traditional spring season, the prices of raw pigs have remained high and low. In response to the trend in pork prices in 2022, he said that, owing to the need for pig farming enterprises to lose their capacity, the price of pork in the first half of 2022 would be at a low point in the cycle, would likely improve in the second half of the year, and the overall price of pork would remain at a low level for most of the year, so that the number of pigs at winning's level would increase by 10 per cent per month at the beginning of 2021 in order to capture the up-to-year cycle that might have arrived in 2022。
Q: how is the company's current cash flow and is there a double-deposit phenomenon
The market is concerned about the cash flow of the wine shares. In his response, the secretary-general said: “in fact, the capacity of wein is close to 40 million pigs. In addition to the african swine plague and market conditions, another factor affecting capacity and productivity is financial capacity. Compared to september and october 2020, businesses have passed the difficult times of funding, currently accounting for over $10 billion, which can support the next round of capacity increases and debt reduction. It was described that the main sources of cash flows of over $10 billion were bank loans, business swaps, corporate debt, dollar debt and supply chain finance. In response to a question about the double-deposit loan, may jins stated: “the amount of the company's deposits and loans is at present high. There are two main reasons: a low industry, a loss of profits, a need to borrow and an increase in loans in order to stabilize the business; and an expected decline in the industry, which will continue for some time, which will lead to an increase in deposits in response to future increased demand for finance. But these are within reasonable limits.”
New hope vi indicated that in november 2021 the company had successfully released $8. 15 billion in revolving debt and that cash flows were currently in good shape。
In 2021, the maharahara shares were caught in a vortex of public opinion by a series of events, such as the late payment of the tickets and the rating outlook, and companies expressed the view that it was normal for the market to be concerned about cash flows and to question them. While the current cash flow is tight, the means of financial support for large shareholders, fixed increases and suspension of construction work are all necessary responses retained by the enterprise during its rapid run. At the bottom of the current “pig cycle”, companies do not have double-stocking。
