To Qian Cong, Jiang You Jun, garlic you ruthlessly come! These stocks went up with it

category:Finance
 To Qian Cong, Jiang You Jun, garlic you ruthlessly come! These stocks went up with it


Spring onion, ginger and garlic rise starting price to do not talk about martial morality, A-share agricultural plate also seems to have the sense of wind dancing. On November 27, the wind agricultural products index rose 2.45%, and the index component stock zhonghonghui fruit and vegetable trading limited.

Ginger production area price doubled year on year

Ginger and garlic are sold at the ginger and garlic counter of a supermarket in Shenzhen. Ginger has different specifications such as 8.9 yuan / 300g

Ren Changhua, director of the industry development department of China vegetable Circulation Association, recently said that the high price of ginger this year is due to the fact that the planting area of most ginger producing areas has not increased in 2019, and the yield per unit area has decreased due to drought, rain and waterlogging, resulting in the current market circulation of ginger lower than the previous level.

In addition to ginger, the prices of green onions and other agricultural products have risen to varying degrees since the second half of the year. According to wind data, as of November 27, the wholesale price of green onions in Beijing Xinfadi agricultural and sideline products wholesale market was 4.8 yuan / kg, three times higher than that in the same period in 2019.

Trend of scallion wholesale price in Beijing Xinfadi agricultural and sideline products wholesale market from 2019 to now

Trend of garlic wholesale price in Beijing Xinfadi agricultural and sideline products wholesale market from 2019 to now

Agricultural institutions are optimistic about prosperity

On November 27, Honghui fruits and vegetables, which led the rise in the wind agricultural product index, were mainly engaged in the planting management, post harvest acquisition, origin pre cooling, frozen storage, pre selection and grading, processing and packaging, cold chain distribution, etc.

Honghui fruits and vegetables in its prospectus mentioned that the company through the North-South distribution of the base layout, the selection of domestic South and North specialty high-quality fruits and vegetables for procurement. In terms of vegetables, garlic moss, ginger and potatoes are mainly purchased in the north, while broccoli, Western lettuce and celery are mainly purchased in the south.

In addition, langyuan shares, suken Nongfa, DaBeiNong, Xuerong biology and other agricultural planting industry chain related stocks all rose to varying degrees.

According to Tianfeng Securities Research Report, the World Meteorological Organization (WMO) and many other countries have issued climate forecasts. La Nina has been formed this winter and is expected to last until March 2021, which will affect the temperature, precipitation and storm patterns in many parts of the world. Under La Nina phenomenon, the cold winter has adverse effects on the cultivation and transportation of fresh vegetables. It is expected that the price increase of agricultural products such as vegetables, mushrooms and mushrooms may exceed expectations this winter.

At the same time, the phenomenon of cold winter and hot summer and abnormal precipitation caused by La Nina phenomenon may reduce the production of wheat, corn and other food crops in China. In addition, the current tight supply of corn in China and the price of grain may rise further. Therefore, farmers enthusiasm for planting is expected to continue to increase.

During the period of La Nina phenomenon, the index of agriculture, forestry, animal husbandry and fishery rose sharply during the two medium-sized La Nina events. Photo source: Tianfeng securities

Downstream industries actively respond to rising costs

A few happy, a few worried. For the industry with agricultural products as the main raw materials, the rise of upstream cost price may bring some pressure on gross profit rate.

Taking condiment industry as an example, Guosheng Securities believes that raw materials account for a high proportion of its cost, and price fluctuation may directly affect the time point, range and strategy of price increase of industry companies.

Golden dragon fish responds to the rising price of raw materials on the interactive platform

In addition, according to the Western securities research report, Haitian flavor industry adopted price raising strategies at the end of 2012, 2014 and 2016 to cope with the price rise of raw materials, and the ton price of the companys products increased significantly in the next year. However, in the environment of rising raw material cost this year, Haitian flavor industry takes the market competition environment into consideration, takes the promotion of market share as the priority, and postpones the price increase to squeeze the survival space of other brands. The agency believes that with the increase of market share, Haitian flavor industry has the ability to raise the price of products at an appropriate time to realize the common growth of scale profit.

Source: Shanghai Securities News Editor in charge: Guo Chenqi_ NBJ9931