Pig prices remain high: Raising one pig in Hainan can earn 1500 yuan
Hainan pig prices remain in the high operating range, raising one pig earns about 1500 yuan.
Since the second half of 2016, pig prices have changed from their surging momentum and shown a downward trend. A reporter from the Business Daily learned that even though pig prices in our province have fluctuated this year, they still remain in the high operating range, and pig farmers earn about 1500 yuan per pig raised.
Xiang Yunqing, chairman of the Haikou Meifuya Pig Breeding Professional Cooperative, who raises pigs in Changwen Village Committee of Hongqi Town, told reporters, “Raising a pig to about 200 jin, excluding feed costs, and counting inputs such as water and electricity, breeding, and labor costs, plus other fixed asset depreciation and other expenses, it needs to sell for 7 yuan per jin just to break even. I have sent 70 to 80 pigs to market this year. Calculating 1500 yuan profit per pig, I easily earned more than 100,000 yuan from pig farming this year. This is a rare good market this year.”
The reporter learned that in the first half of the year, because the number of pigs sent to market and the number of breeding sows both declined at the same time, pig prices in our province continued to rise, reaching this year's highest point in June at 20.96 yuan/kg. After entering the third quarter, pigs began to be sent to market in concentrated batches, and market supply increased sharply in a short period. Coupled with factors such as lower summer consumer demand and an increase in imported pork, pig prices began to fall back from highs in July and August, but because the total pig supply was still lower than the previous year, the decline was limited. In September, driven by the Mid-Autumn and National Day holidays and the increase in concentrated consumption when school started, pig prices even rebounded slightly.
Experts from the Provincial Pig Farming Association believe that the suitable climate in our province this year, with no disease, improved the survival rate, leading to an increase in the supply of pigs available for market from September to November. Second, the surge in imported pork dealt a shock to domestic pig prices. Based on the current situation, a huge amount of imported pork will still enter the Chinese market in the fourth quarter. In addition, pig farmers in northern regions increased marketings, the weight at marketing rose, and pigs were frequently transported from north to south. With these factors overlapping, pig prices in our province fluctuated but still remained in the high operating range.
To prevent excessive rises and falls in pig prices, the Provincial Price Bureau, the Provincial Department of Finance, the Provincial Department of Agriculture, and the Provincial Department of Commerce recently issued a notice on Hainan Province's regulation plan for easing cyclical fluctuations in pig market prices. The revised "Regulation Plan for Easing Cyclical Fluctuations in Pig Market Prices" makes clear that the break-even point for pig production is lowered from 6:1 to between 5.5:1 and 5.8:1. The introduction of the new plan pays more attention to regulating production through market rules to promote market stability, and pays more attention to regulating production and the market from the macro level.