Pig prices hit a near three-year high, with considerable farming profits

Since the beginning of this year, due to a certain tightness in the supply of large pigs brought to market and persistently high farming costs, pig prices in April have maintained an upward trend. According to monitoring, in early April, the average ex-farm price of fattening pigs at a thousand farming enterprises nationwide was 15.15 yuan/kg, up 0.7% month-on-month. The current pig price is 9.6% higher than at the beginning of the year and 57.3% higher than the same period last year, hitting a new high since 2009.

According to the Ministry of Agriculture, at the end of March, the total national hog inventory was 448 million head, up 0.8% month-on-month; the total inventory of breeding sows was 47.1 million head, down 0.4% month-on-month. Compared with the minimum levels set in the national regulation plan, the current hog and breeding sow inventories are both relatively adequate. In addition, with considerable farming profits and active restocking of piglets, hog inventory is expected to continue increasing in the second half of the year.

According to separate monitoring, in early April, the average purchase price of corn at a thousand farming enterprises nationwide was 2.18 yuan/kg, up 0.5% month-on-month, up 3.8% from the beginning of the year, and up 11.3% from the same period last year. The pig-to-grain price ratio remained at a relatively high level, with the average pig-to-grain price ratio at a thousand farming enterprises reaching 6.95:1. Preliminary estimates show that the average profit from selling one commercial fattening pig is currently about 380 yuan, and in some areas close to 500 yuan.

At present, the average purchase price of piglets has risen sharply year-on-year. According to monitoring by the Ministry of Agriculture, on April 13, the price of piglets at 470 rural markets nationwide was 24.86 yuan/kg, a sharp year-on-year increase of 69.3%. The increase has already exceeded that of fattening pig prices by 12 percentage points. Coupled with relatively high inflationary pressure, the risk in the pig farming market is expected to increase in the second half of the year.