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If there are no retail investors, can slaughter enterprises arbitrarily depress prices?!

2019/02/27 17:59
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With the continuous development of large-scale and intensive pig farming, coupled with the "environmental storm" in pig industry in recent years, the living space of "vulnerable groups" such as small and medium-sized pig farms and small retail investors seems to be getting smaller and smaller. In addition, due to the lack of scientific, systematic management and huge financial pressure, the problem of weak pressure resistance of small and medium-sized retail investors is constantly exposed. It can be said that "survive in the crack", and more pig farmers call it "the hanging of small and medium-sized retail farmers"! In this situation, the slaughterhouse from time to time "price reduction" behavior, but also let these pig farmers complain endlessly.



Recently, some pig farmers have been discussed. If there is no individual pig raising, China's pig market is all large-scale farming. Will slaughtering enterprises lower prices? In response to this problem, let's see what your views are.

Mountain 50

In fact, slaughterhouses and pig farms are not enemies. It is an industrial company, a relationship of mutual survival. Who will sell pigs to pig farms without slaughterhouses? It is impossible to sell the pigs by selling them a few days a day, or selling the meat to the market. Slaughterhouses are also inseparable from pig farms, especially large slaughterhouses slaughtering thousands of pigs a day. There is not enough supply of pigs, so slaughterhouses can hardly survive. It is not surprising that slaughterhouses and pig farms often have two minds on the issue of selling and selling live pigs. Piggers always want to sell at a high price to increase their income. Slaughterhouses also want to buy pigs at a low price and sell meat at high prices to maximize their interests. It's these two different mindsets that make slaughterhouses and pig farmers often reserve this situation.* The final result depends on whether the supply and demand of capacity are normal. Overcapacity, pig*keepers lose. Supply is scarce, slaughterhouse loses. These are normal phenomena in business.

From the game phenomenon between slaughterhouse and pig*raising household on price, we can see that the price will decrease as long as the supply exceeds the demand, whether it is individual pig*raising or large-scale pig*raising. If all retail households withdraw from pig farming, only large-scale households remain, but production capacity is still excessive, slaughterhouses still do not discuss the price reduction.* Don't complain about the slaughterhouse. If you don't sell more pigs, you'll always have money to sell pigs. At this time, the slaughterhouse will see whose pig price is low and buy it. Even if the slaughterhouse does not press the price of pig farmers themselves will be confused. When production capacity is not enough to meet demand, slaughterhouse price pressures will fail even if it is all individual pig farms. In 2008, most of the pig breeding industry in China was individual pig raising. The pig price reached 8.5 yuan in that year, and the profit of each pig was nearly 1000 yuan, compared with the thousand yuan at that time. Now that the scale of households has reached half, slaughterhouses have succeeded in price reduction this year. So the slaughterhouse price depends only on productivity, and it has nothing to do with whether retail investors quit the pig industry.

A Waste Happiness

It is impossible for slaughter enterprises to treat large-scale pig-raising enterprises as we do for retail investors. Without retail investors, the future of slaughter enterprises is now retail investors. Once large pig-raising enterprises reach a certain scale, they will certainly build their own slaughterhouses. Therefore, without retail investors, independent slaughter enterprises will no longer exist. Once pig feed, veterinary medicine, breeding and slaughtering are all one-stop, it can be said to be monopolistic. Can we still have cheap pork?

Golden hook bait

Very simple question, if there are no retail investors, then you will surely ask: "Now are all pig farms, pig farms and slaughterhouses can not be so capricious to find a reason to increase the price of meat ah?"

You pig breeders, after reading the above answers, what are your opinions on this question? Or how do you view the price fixing behavior of pig enterprises in the pig market? Welcome to the comment area to leave a message, to say your views! ___________

Source: China Aquaculture Alliance