What changes have "capital" brought to the pig industry? Is it good or bad for the industry?

The great change of this pig cycle is obvious to farmers, and its scale process and concentration are incomparable to any previous pig cycle. "African swine fever" has brought far-reaching influence to the industry. In the face of high profits, farmers began to go crazy, and non-farmers began to join the pig industry, which naturally included the "capital" of "mercenary".

What changes have "capital" brought to the pig industry? First of all, talk about the purpose of capital intervention. "Profit" is naturally its pursuit, and "higher profit" is its ultimate pursuit. When the opportunity of "African swine fever" appeared in the pig industry, a pig made a profit of nearly 3,000 yuan, and raising pigs became a new way for many people to get rich. Naturally, it has attracted a certain amount of "capital" to intervene in the pig industry, and even cross-border pig-raising enterprises, such as Country Garden, Vanke and other real estate enterprises, want to share a piece of the pig industry.

Secondly, what changes have been brought to the pig industry after the capital came in? Let's feel it through a set of data. At present, the market share of the total slaughter of more than 500 pig farms has reached more than 60%, and the market share of the total slaughter of the top 20 pig enterprises in the pig industry has reached 20.3%. To know that 99% of the participants in China's pig industry are small and medium-sized retail investors, we can think about the scale of their breeding and the size of pig enterprises, which is not the original ten or twenty.

Is it good or bad for the pig industry to get involved with "capital"? Everything has its own side, and the "capital intervention" pig industry naturally has both sides.

Good: capital has capital advantages that retail investors do not have, and it is better in industrial upgrading and software and hardware configuration. Industry giants have not always said that the development of our pig industry depends not only on the domestic market, but also on international advanced breeding technology. From this aspect, capital's "involvement in pig industry" is more conducive to the rapid development of the industry.

Negative: "profit-seeking" is the nature of capitalists, and desire often matches the power to promote the development of the industry. Since the pig price plummeted in the middle of last year, the pig industry has entered a loss, deep loss and deep quagmire, and it has not been able to get out of the bottom of the pig cycle for a long time. This is partly because capital is constantly expanding driven by desire, and even borrowing money will occupy more markets, which leads to endless complaints from industry participants.

Now, as far as pig giants and large-scale plans are concerned, the goal of selling pigs in 2022 is still growing. Undoubtedly, everyone chooses to "endure" to see who can "endure" to the end. Everyone tacitly thinks that "surplus" is king, but in this process, we ask ourselves whether we really care about the loss of real money and silver.