Why rural farming has not become a slaughter industrial chain, and what difficulties will it face?

Development opportunities and inherent risks of pig breeding and slaughter processing industry

1, overview of industrial chain

The upstream and downstream related industrial chains of pig breeding and slaughtering and processing industries are very long. Pig breeding belongs to the middle and upper reaches of the industrial chain, and its upstream mainly includes planting and feed industry. The pig slaughtering and processing industry belongs to the middle and lower reaches of the industrial chain, and its downstream mainly includes end consumers who directly buy hot fresh meat, cold meat and other edible products, as well as various pork retail enterprises and meat products deep processing enterprises.

(1) Upstream situation

China feed industry has maintained a good momentum of rapid development. The main raw materials of pig feed are corn and soybean meal. China is a big country in corn planting and soybean processing. The sources of the two raw materials are very rich, and the supply is stable and reliable.

Related Report: Consulting Report of Beijing Puhua Youce Information Consulting Co., Ltd. on Competition Pattern Analysis and Investment Strategy Formulation of Pig Breeding and Slaughtering Processing Industry.

(2) Downstream situation

The downstream of pig breeding and slaughter processing industries are end consumers, as well as various pork retail enterprises and meat products deep processing enterprises. With the development of China's national economy and the increasing income of residents, various forms of pork consumption will continue to maintain a certain growth.

In the storage and transportation of products, cold chain logistics is the basic project for the production and sales of chilled meat and low-temperature meat products, which extends the sales radius and shelf life of chilled meat and low-temperature meat products. At present, the development of cold chain logistics makes it possible to sell high-grade products such as chilled meat and low-temperature meat products.

At present, pork in China is mainly sold through farmers' markets, but the proportion of sales in supermarkets and other channels is generally on the rise. The cold chain sales equipment in supermarkets also provides a strong guarantee for the sales of high-end meat products in the industry. At present, it basically covers large supermarket chains that can realize cold storage sales in large and medium-sized cities. In the future, with the growth of rural economy, they will also drive chain supermarkets to expand into rural markets and promote direct contact between the downstream of the meat industry and consumers.

(3) the influence of upstream and downstream industries on this industry

The upstream industry directly affects the cost of pig breeding and slaughter processing industry, and is in the middle of the industrial chain. Because the cost of live pigs accounts for about 90% of the industry cost and the cost of feed accounts for about 60% of the cost of live pigs, the upstream industry has a great influence on the industry where the company is located.

Downstream industries mainly affect the price and sales of products in the industry. The diversified demand of downstream industries and the development of warehousing, logistics and distribution have opened up demand growth space for the industry.

2. Industry development opportunities

(1) National industrial policy support

The pig breeding, slaughtering and processing industries have always been strongly supported by national policies. The State Council issued Opinions on Promoting the Sustainable and Healthy Development of Animal Husbandry (Guo Fa [2007] No.4) and Opinions of the State Council on Supporting the Development of Leading Enterprises in Agricultural Industrialization (Guo Fa [20 12] 10). The Outline of the National Development Plan for Pig Slaughtering Industry (20 10-20 15) issued by the Ministry of Commerce in 2009, the Twelfth Five-Year Development Plan for Meat Industry jointly issued by the Ministry of Industry and Information Technology and the Ministry of Agriculture in 20 12, and the "On Stability" issued by the Ministry of Agriculture in 20 13.

(2) Industry development is gradually standardized.

China has formulated and promulgated such laws, regulations and normative documents as Regulations on Prevention and Control of Pollution from Livestock and Poultry Farming, Regulations on Management of Pig Slaughtering, Measures for Implementation of Regulations on Management of Pig Slaughtering, and People's Republic of China (PRC) Food Safety Law, which comprehensively supervise and guide the industry from aspects of breeding, slaughter, production, consumption, subsequent circulation and consumption. The constant standardization of the industry is definitely beneficial to pig breeding and slaughter.

(3) China's ability to cope with the epidemic has been strengthened.

The state's efforts and investment in animal epidemic prevention have been significantly increased, major animal epidemics have been effectively curbed, the emergency mechanism has been gradually improved, the reform of veterinary management system has been steadily promoted, and the infrastructure construction for animal epidemic prevention has been strengthened, which is conducive to the development of pig breeding.

(4) Consumption upgrading drives the development of the industry.

With the continuous improvement of people's living standards and the acceleration of the pace of life, consumers' food consumption concept has developed from the initial satisfaction of food and clothing to the pursuit of high-quality, convenient and fast consumption, so the demand for chilled meat and meat products with high nutritional value, convenient eating, safety and hygiene is increasing. The consumption of meat will be more safe, hygienic, convenient, fast, nutritious and productized, and the consumption of meat products, especially low-temperature meat products, chilled meat from different parts, small packaged meat, semi-finished meat and convenience foods, functional foods, leisure foods and tourist foods with meat as raw materials will increase significantly.

(5) The domestic market has great potential.

With the growth of per capita disposable income, consumption upgrading driven by high-quality products, the improvement of food safety system and the rapid development of catering industry, pork consumption will maintain growth for a long time.

3. The basic risk characteristics of the industry

(1) food safety and product quality risks

Pig breeding, slaughtering and processing is one of the industries with strict market access in China, which undertakes the industrial functions and social responsibilities of serving agriculture, countryside and farmers, meeting the pork consumption demand of residents, and ensuring meat hygiene and quality and safety. The state has always attached great importance to food safety and hygiene. Especially in recent years, the State Council has taken a series of measures to strengthen product quality and food safety management, put forward higher requirements for food safety and intensified special rectification work. At the same time, the quality control of pork products involves feed supply, pig breeding, slaughtering and processing, intensive processing, logistics and transportation. It is difficult to control and easy to breed all kinds of violations. In recent years, food safety and quality incidents, including pork safety, have occurred from time to time, such as "Clenbuterol" in 201and "Dead Pig in Huangpu River" in 20 13. Food safety and product quality problems will seriously affect people's confidence in related production enterprises and pork consumption, and have a negative impact on the pork industry in a certain period of time.

(2) Animal epidemic risk

At present, the scale of pig breeding in China is still low and the feeding environment is poor. Such as highly pathogenic blue ear disease, porcine circovirus disease, porcine parvovirus disease and so on, are frequent and have high complexity. On the one hand, the outbreak of related epidemic will directly lead to the reduction of pig sources, the purchase price of pigs fluctuates greatly, and the production cost of pork is facing upward pressure; At the same time, it is easy to cause consumers to panic about the consumption of pork and pork products, resulting in a decrease in product sales; On the other hand, if the potential diseases of pigs are not detected in the process of production inspection and quarantine, so that sick pigs enter the production process, it will cause serious food safety incidents and make the whole industry depressed or even decline.

(3) Risk of price fluctuation

The price of live pigs is influenced by many factors, such as the growth cycle of live pigs, stock, feed price, market supply and demand, etc. Moreover, the fluctuation of live pig prices is relatively large, which will directly affect the profitability of pork production enterprises. The periodic fluctuation of live pig prices, accompanied by the rapid decline and rapid rise of prices in a short period of time, makes the profit level of the industry fluctuate greatly, thus affecting the profit level of related enterprises.

(4) Seasonal risk of sales

Pork is the main non-staple food consumed by China residents. Pork consumption is greatly influenced by traditional major festivals, such as Mid-Autumn Festival and Spring Festival. There is an obvious "festival craze" in the pork consumption market. Before every traditional major holiday, it belongs to the peak season of sales, and the sales situation is relatively stable at other times. Because pork products are foods with short shelf life, if they are not fully prepared before the arrival of the sales season, they will face the risk that the products will not meet the market demand.