Pig prices have rebounded and costs have decreased. Top pig companies such as New Hope and Wen's Food Group have gradually achieved monthly profit and loss balance, and the industry is overall returning to the breakeven point of breeding profit and loss. Relevant company officials have all stated that ensuring profitability will be the primary consideration in the future to achieve high-quality development of the company.

On May 7, Jinshi Data reported that the General Administration of Customs Announcement No. 52 of 2024 will allow the import of French pig-derived protein feed that meets the relevant requirements in accordance with China's relevant laws and regulations and the provisions of the General Administration of Customs of the People's Republic of China and the Ministry of Agriculture and Food Sovereignty of the French Republic on the quarantine and health requirements for the export of French pig-derived protein feed to China.

According to the joint monitoring of the Price Monitoring Center of the National Development and Reform Commission and Zhuochuang Information, as of the week ending April 24, the national feed-to-pork ratio was 4.84, a decrease of 0.21% from the previous week. Based on the current prices and costs, the average profit per head of pig farming in the future piglet fattening model is 173.80 yuan. The pig prices weakened during the week. The digestion speed of pig sources further slowed down, increasing the pressure on farming units to sell pigs. Although there was a sentiment of reluctant selling and resistance to lower prices, the rebound of pig prices was weak. Slaughtering companies had a strong intention to lower prices, causing the pig prices to fluctuate and decline. This week is just before the May Day holiday, and it is expected that pig prices may temporarily rise, but there is still a high possibility of further decline in the later period.

According to the data from the National Development and Reform Commission, as of April 24th, the national price of live pigs was 15.31 yuan/kg, a decrease of 0.33% compared to April 17th; the price of corn in major wholesale markets was 2.40 yuan/kg, a decrease of 0.83% compared to April 17th; and the pig-to-feed ratio was 6.38, an increase of 0.47% compared to April 17th.

Golden Ten Data reported on April 29 that Wen's shares recently said in an investor survey that the company's single pig basically achieved breakeven in March. Nine of the company's 16 regional pig farming units are profitable. In the future, the pig industry may be generally in a weak balance and low profitability. Based on the company's current production capacity, future slaughter planning, current market conditions and judgment of future market conditions, the company has determined that the fixed asset investment plan in 2024 will be 2 billion yuan to 3 billion yuan, mainly investing in the upgrading and transformation of some breeding pig farms, pig breeding communities, broiler production capacity and other projects. In the future, the company will also consider expanding the business volume of laying hens, white feather broilers and other industries.

On April 27, Muyuan Stock mentioned in a media communication event that, against the backdrop of a high decline in grain prices, the company's breeding costs have continued to decrease. The target cost for the whole year of 2024 will be reduced to 14.5 yuan/kg, and it is expected to reach below 14 yuan/kg by the end of the year. Muyuan believes that the pig breeding industry has already passed the most difficult stage, and the current industry stock of mother pigs has decreased to the green zone. The industry prices will continue to recover in the future.

Golden Ten Data reported on April 26 that Muyuan Co., Ltd. released its 2023 annual report and 2024 first quarter report, showing that in 2023, the company will sell 63.816 million live pigs, achieve revenue of 110.861 billion yuan, and net profit loss of 4.263 billion yuan. In 2023, the average complete cost of animal husbandry pig breeding will reach about 15 yuan/kg, a decrease of 0.7 yuan/kg compared with 2022. In the first quarter of 2024, Muyuan Co., Ltd. achieved a revenue of 26.272 billion yuan, a net profit loss of 2.379 billion yuan, and a total of 16.011 million live pigs were sold, a year-on-year rise of 15.6%, and the number of slaughters remained rise.