Beef prices accelerate upward, rising 10 yuan per kilogram in a week
Since the beginning of this year, beef prices have shown a steady upward trend. According to market monitoring by the Ministry of Agriculture, as of 14:00 on December 15, the average beef price at wholesale markets nationwide was 35.48 yuan/kg, up 0.1% from the previous day. In mid-May, the average beef wholesale price stood at 32.26 yuan/kg, from which it can be calculated that beef prices have risen by nearly 10% over the past six months.
Meanwhile, recent reports in the Guangzhou media said that the retail price of beef at some local markets rose by 10 yuan/kg in the space of just one week. Data from the Agricultural Information Network show that, nationwide, there are quite a few agricultural wholesale markets where the beef wholesale price is above 40 yuan/kg. At the Yuegezhuang Agricultural Products Wholesale Market in Beijing, the beef wholesale price even reached 48 yuan/kg.
The rise in beef prices may benefit related listed companies. Among them, Fucheng Wufeng (600965, stock forum) (600965) is mainly engaged in beef cattle breeding, slaughtering, processing, and the sale of live cattle and beef products, with revenue from live cattle and beef operations accounting for 59% of the company's 2010 revenue. As for the reasons behind the sustained rise in beef prices this year, He Yong, the company's securities affairs representative, said it was mainly driven by rising raw material costs.
Industry insiders analyzed that since the start of this year, feed prices have remained high and beef output has been insufficient, creating an imbalance between supply and demand; combined with higher labor costs and transport costs, and the linked effect of breeding costs and price factors, this has led to the rise in beef retail prices. However, He Yong said the pace of raw material price increases had not swallowed up product price increases, and for the company this should be beneficial.
A staff member in the board secretary's office of New Hope (000876) said in an interview with a Securities Times reporter that the company's feed prices had not risen recently, and that as feed raw material prices decline, feed prices may also be lowered at the same time. Regarding the recent acceleration in beef price increases, the staff member said it was to a large extent due to seasonal factors.
A person in charge of a factory under Fucheng Wufeng told reporters that beef prices rose in a wave during September and October, with little fluctuation recently, while live yellow cattle prices rose slightly. The person in charge said that with the arrival of the Spring Festival, prices may rise very soon.