Cattle have to be cultivated, sheep have to produce milk and shear their wool, and the first thing people think of when they want to eat some meat is pigs.

All content in this article is based on official and reliable sources, and the specific information is detailed at the end of the article.

Chinese have a history of eating pigs for more than 6,000 years, and pig farming has been one of the most profitable industries throughout the ages.

Even in the most difficult times, pig farmers are living a little better than ordinary people.

With the emergence of large-scale breeding, many people have climbed the rich list with pig raising, and Qin Yinglin and his wife, the rulers of Muyuan, are directly among the top 100 in the world.

But it is this industry, which is optimistic about the "long-term prosperity", that will break out one after another in 2023.

Some companies have unlimited scenery in the first second, and they will accept bankruptcy and reorganization in the next second, and it is even rumored that they will not even be able to pay their employees' salaries, and the feed money will shrink.

Seeing it, netizens couldn't help but sigh: I didn't expect that even pigs can't afford to eat now.

So, what happened to the pig industry that led to such a big change?

Leading enterprises "thunder"

According to the annual financial reports of 17 companies, in 2023 alone, these "pig tycoons" will lose a total of 27.051 billion.

This is also large companies, plus small and medium-sized companies and retail investors lose money, the entire pig industry has lost nearly 30 billion.

Even, many leading enterprises in the aquaculture industry are facing the crisis of bankruptcy and reorganization.

Just before the Spring Festival in 2024, when everyone is looking forward to celebrating the festival, the employees of Aonong Biotech are having a hard time.

Companies are facing great upheaval, and they are likely to face a job loss crisis.

Because the company failed to repay its debts on time and its solvency was in jeopardy, it was sued by the creditor Dazhou Group and applied for pre-reorganization.

You must know that three years ago, Aonong Biotech was known as the existence of "pig dark horse", and once occupied the first position in Fujian.

But in just three years, this brilliant company faced the dilemma of bankruptcy with insolvency and frozen funds.

A large part of this is due to the fact that Aonong Biotech has focused its main focus on pig farming.

In 2018, the African swine fever that plagued pig farmers finally came to an end.

Aonong Technology believes that the pork market, which has been dormant for a long time, will lead to a rebound, so it has aggressively expanded the scale of pig farms.

According to the public financial report, from 2019 to 2020, the balance of the company's construction projects increased by more than 1 times.

Because of its aggressive expansion, it has borrowed a lot of money, and among many listed pig enterprises, the debt ratio is second only to Zhengbang Group.

These two companies are also the two companies that "fell" the most in the crisis of the pig industry.

I thought that expanding the scale would make a lot of money in the future, but the "pig cycle" that had not passed for a long time made the company lose money again and again.

In the end, he fell into the situation of not paying the money and being sued by the creditor in court.

If the problem is not solved in the process of pre-reorganization, then the brand "Aonong" is really dangerous.

In fact, not only Aonong, but even Muyuan, the country's largest pig breeding company, was also in a state of loss last year.

This is the first time that the company has lost money after nine consecutive years of profitability after being listed.

It can be seen that this "big shock" in the pig industry is fierce.

So, what is the reason for this "big shock"?

The growth of the pig cycle is the main reason

To understand why, we must understand the concept of the "pig cycle".

So, what is the pig cycle? To put it bluntly, it is the time difference between the supply of pigs and the price of pork due to mismatch.

For example, you may understand that in a certain year, the economic situation is very good, and people have more money in their trouser pockets.

Then it is necessary to improve their living standards and increase the Engel coefficient, right, so everyone buys a large amount of pork, resulting in a shortage of demand in the market.

The price is naturally rising with the high water, and the farmers and breeding enterprises are happy to see the market situation.

In order to make money, it is bound to expand the scale of breeding and add a batch of piglets.

But the problem is that this group of piglets takes time to grow, and it takes about 8 months to reach the fertile period.

It takes another 5 months to give birth to a new piglet, and it takes 5 months to get pregnant and nursery.

It takes several months to increase the nutrition of the sows after giving birth, and to sell the meat for a good price over and over again.

And that adds up to almost two years.

When these sows enter the market, the supply becomes larger, the demand decreases or remains the same, and the price of pork will fall again.

And the farmers will reduce the scale accordingly, and the cycle repeats, which is a cyclical cycle, that is, the "pig cycle".

In general, a complete pig cycle should be 3 years.

However, since 2006, there have been many prolonged pig cycles in the mainland, and even in 2014, there was the "longest pig cycle in history".

The round of pig cycle that has just ended is also, no longer regular changes, "hit" the pig breeding industry off guard.

Behind the extension of the pig cycle, it actually represents that residents have a higher pursuit of hard life.

According to the meat trading inspection report of many bazaars, we can clearly see that except for pork, the trading volume of other meats has increased in varying degrees.

As residents' incomes grow, beef and mutton are no longer "expensive" out of reach, and adults are happy to buy some for their children to balance their nutrition.

In order to pursue body curves, young girls will subconsciously eat healthily and abandon pork with higher fat content in favor of fish and chicken.

When demand decreases, purchases naturally fall, prices fall, and farmers lose money.

Some small retail investors in the industry do not have much pig inventory, and if there are signs of loss, they will sell them quickly, reduce the scale or find another way.

But large pig farming companies are not so flexible.

With a strong capital like Muyuan, there is barely money left, or funds from other sources to support the arrival of the next cycle.

However, some companies with insufficient capital reserves, or small and medium-sized companies facing long-term losses, will not end well.

epilogue

According to industry experts, according to the current situation, the prolongation of the pig cycle seems to be an irreversible trend.

This also requires breeding enterprises to further optimize production management and reduce production costs.

At the same time, it is also necessary to accelerate the transformation of enterprises, such as cooperating with the meat processing industry to create their own meat product brands.

However, some netizens suggested that you should not raise pigs at all, and raise other ones.

In short, although it is an internal matter for companies to make decisions, we also hope that they can survive the difficult times.

After all, when the enterprise is stable, the work of employees can be stable, and if a large number of bankruptcies and bankruptcies occur, there will inevitably be a wave of unemployment.

At that time, it will also be detrimental to the stable and healthy development of the overall economy.

Reference Sources:

The "pig cycle" has become longer, forcing the industry to transform

The first loss of the year since the listing of "Pig Mao" responded in a timely manner-Listed Company-Shanghai Securities News·China Securities Network

The radical expansion capital chain is broken, and Aonong Bio's self-brewed pig breeding is a big failure|Jiemian News

Salary arrears, debts are overdue, Fujian's "pig king" suffered a huge loss of more than 3 billion last year, and major shareholders are facing bankruptcy!

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