Make efforts to lay out the pig breeding industry LUONIUSHAN plans to raise nearly 2.5 billion yuan to expand production

category:Finance
 Make efforts to lay out the pig breeding industry LUONIUSHAN plans to raise nearly 2.5 billion yuan to expand production


Make efforts to layout pig breeding industry

LUONIUSHAN is mainly engaged in large-scale agriculture (pig breeding, slaughtering and processing, cold chain business), real estate, education and other businesses, with large-scale agriculture as the main business, real estate business and education industry as the auxiliary.

According to the introduction, the company expects to increase the number of sows that can be bred and the production capacity of commercial pigs by 1.3563 million annually after the implementation of the project.

With the rising market price of commodity pigs and the rising prosperity of pig industry, Luo Niushan said that he would take the initiative to grasp the golden cycle of pig industry development, timely layout, increase investment, expand the scale of pig breeding, improve the efficiency of pig breeding, actively expand the construction of industrial chain supporting layout, such as slaughtering and processing, feed production, and quickly complete the layout and development of the companys industrial chain, and further Increase market share.

Just half a month ago, LUONIUSHAN announced that it planned to invest 325 million yuan to build Sanya Yazhou pig breeding project. After the completion of the project, it will help the company to expand the scale of pig breeding, improve the companys regional market share, and further enhance the companys comprehensive competitiveness.

Pig scenery is expected to continue

According to wind information and USDA data, since Chinas pork consumption exceeded 50 million tons in 2010, Chinas pork consumption has basically stabilized at 55 million tons. In 2018, Chinas pork consumption was 55.398 million tons. Although the increase of pork price driven by the reduction of pork supply has led to the decrease of domestic pork consumption in 2019, according to the China agriculture outlook report (2019-2028) issued by the market early warning Expert Committee of the Ministry of agriculture and rural areas, Chinas pork consumption will still be in a steady growth state in the next decade.

Affected by African swine fever and other factors, according to the statistics of the National Bureau of statistics, in 2018, Chinas pork production was 5403700 tons, ranking first in the world, accounting for 47.85% of the global pork production of 112.938 million tons in the same period; in the first three quarters of 2019, the National pork production was only 31.81 million tons, down 17.2%. As of October 2019, the total number of pigs on hand in China is 190.75 million, and that of fertile sows is 19.24 million, all at a low level. To some extent, the current situation of low stock of breedable sows has inhibited the speed of filling the stock. Therefore, it is expected that the market price of pigs will remain stable above a certain level in the future.

Under the comprehensive influence of factors such as the reduction of production capacity of pig industry and African swine fever, since May 2018, the price of pig in China has entered the rising channel. The average price of pig in 22 provinces and cities across the country increased from 10.1 yuan / kg at the beginning of May 2018 to 33.95 yuan / kg in December 2019, an increase of 236.14%.

Luo Niushan said that in the short term, the supply and demand of the pig market will provide a good profit space for the pig breeding industry chain. In the long run, the promotion of residents diet consumption provides strong support for the long-term development of modern animal husbandry represented by the pig breeding industry chain; at the same time, the industrial breeding mode integrating feed production and breeding has strong competitiveness in breeding cost, epidemic prevention and financing, and the industrialized centralized breeding guided by marketization will become the main pig supply The source.

Multiple A-share companies

In addition to LUONIUSHAN, a number of listed companies have invested in pig breeding industry, such as Kangda, TangRenShen, muyuan, Wenshi, Longda meat, jinxinnong, Zhengbang technology, aonong biology, etc. the latest ones are aonong biology, new hope, Yisheng, Huatong, Hefeng animal husbandry, etc.

In the evening of December 31, 2019, aonong biology announced that Jishui Aoxi agriculture and animal husbandry Co., Ltd., a wholly-owned subsidiary of the company, invested and built a commercial sow farm with 10000 sows in Jishui County, Jiangxi Province. The project products are mainly commercial piglets. In order to support the independent fattening capacity of the project, the company plans to invest 50 million yuan in the local construction of a new wholly-owned subsidiary to build a fattening and breeding community and engage in business Pig fattening business.

In the afternoon of the same day, new hope announced that in order to further improve the companys share of advantageous breeding resources and enhance the companys comprehensive competitiveness and profitability, the company decided to continue to increase investment in pig breeding business, with a total investment of about 5.8 billion yuan to build seven pig breeding projects. On the night before the new hope announcement, prebiotics announced that the company signed an investment cooperation agreement with Heilongjiang No. 82 farm in the eighth five year plan, and reached cooperation on investment, construction, operation and related matters of 4800 original sow breeding farms and large-scale pig breeding farms construction project. The total investment of the project is about 268 million yuan, and the construction period is planned to be 2 years. In addition, on December 28, 2019, Huatong also announced that in order to expand the scale of pig breeding and promote the strategic development of the company, the company plans to invest and set up subsidiaries Dongyang animal husbandry and Xiangshan animal husbandry in Dongyang City and Xiangshan County of Zhejiang Province with its own funds of 50 million yuan and 39.5 million yuan, respectively, holding 100% and 79% of shares respectively. Source: responsible editor of Securities Times: Yang bin_nf4368

In the afternoon of the same day, new hope announced that in order to further improve the companys share of advantageous breeding resources and enhance the companys comprehensive competitiveness and profitability, the company decided to continue to increase investment in pig breeding business, with a total investment of about 5.8 billion yuan to build seven pig breeding projects.

On the night before the new hope announcement, prebiotics announced that the company signed an investment cooperation agreement with Heilongjiang No. 82 farm in the eighth five year plan, and reached cooperation on investment, construction, operation and related matters of 4800 original sow breeding farms and large-scale pig breeding farms construction project. The total investment of the project is about 268 million yuan, and the construction period is planned to be 2 years.

In addition, on December 28, 2019, Huatong also announced that in order to expand the scale of pig breeding and promote the strategic development of the company, the company plans to invest and set up subsidiaries Dongyang animal husbandry and Xiangshan animal husbandry in Dongyang City and Xiangshan County of Zhejiang Province with its own funds of 50 million yuan and 39.5 million yuan, respectively, holding 100% and 79% of shares respectively.