What Are the Prospects for Pig Farming in 2020 and 5 Pros and Cons to Consider
In 2019, affected by African swine fever, China's live pig inventory declined and prices rose steadily. For pig farmers, this was a turbulent year, with some losing everything and others making a fortune. So what are the prospects for pig farming in 2020? These 5 pros and cons should be carefully considered. Pig farmers, it is recommended that you save this!
I. What Are the Prospects for Pig Farming in 2020: 3 Drawbacks
1. Rising Corn Prices
Recently, as deep-processing enterprises in various regions have gradually resumed operations and begun purchasing corn, corn prices have risen to varying degrees. For example, Shandong Yingxuan raised prices twice in a row, for a total increase of 70 yuan/ton; Shandong Fuyang rose 20 yuan/ton; and Cargill Biochemical rose 30 yuan/ton. Judging from the current situation, enterprises that resume operations later will also gradually raise corn prices.
In addition, as pig production capacity recovers, demand for corn will continue to increase, and corn prices are expected to keep rising later on. Corn accounts for more than 70% of pig feed, so as corn prices rise, pig farming costs will increase, which will affect pig farming profits to a certain extent.
2. Recovery of Pig Production Capacity
As production capacity recovers, the number of pigs available for slaughter will gradually increase, and pig prices will subsequently fall. For pig farmers, once pig prices drop, pig farming profits will shrink.
3. Prevention and Control of African Swine Fever Still Requires Attention
According to foreign experience in preventing and controlling African swine fever, it is very difficult to completely eliminate African swine fever in a short period of time. In other words, before an African swine fever vaccine is developed or the African swine fever virus is completely eradicated from China, there will still be potential risks.
II. What Are the Prospects for Pig Farming in 2020: 2 Positive Factors
1. Policies Encourage Pig Farming
Since the second half of 2019, China's pork prices have advanced by leaps and bounds, rising rapidly by more than 30 yuan. This not only made many ordinary people lament that they simply could not afford pork, but also led relevant departments to adopt various measures to stabilize and curb the excessively rapid rise in pork prices. One very important measure among them is to encourage the development of large-scale farming, support rural households in raising pigs, and actively expand the scale of pig farming.
The policies mainly include the following: in terms of land for pig farming, it shall be managed as agricultural land, and no construction land approval is required. Moreover, many regions have stipulated that general cultivated land may be used for pig farming land, and the upper limit of 15 mu of land has been abolished. In addition, certain provisions have also been made regarding land for production facilities such as pig farming, internal passages, and green buffer zones, which provides a basis for guaranteeing the land needed for waste treatment facilities in pig farming production.
2. Lowering the Threshold for Loan Interest Subsidies
In order to accelerate the recovery of pig production, the scope of loan interest subsidy assistance for farms and households has been adjusted from an annual slaughter volume of more than 5,000 head to more than 500 head. With this lowering of the threshold, more small and medium-sized farmers will benefit.
At the current stage, the pig farming industry indeed has quite high profits, but there are also certain farming risks. Pig farmers must act cautiously when raising pigs, and the best strategy is to maximize benefits while minimizing risks. Is it difficult to find projects in rural areas, and do you not know what projects to pursue to make money? Every aspect of rural life is inseparable from land, so of course you should do things that involve dealing with land. At present, Tuliu Group is recruiting land transfer service providers nationwide and building land transfer service centers. (For details, click the link: https://xiangmu.tuliu.com/)