Egg production has obvious seasonal and cyclical characteristics: in a year, due to the lack of feed materials such as corn around September, school opening, holiday stocking and other factors, egg prices often form a high point throughout the year. With the arrival of winter, the probability of avian influenza and other diseases in laying hens increases and the price fluctuation increases.
In the medium and long term, China's egg prices show obvious cyclical characteristics, with a cycle of about 3 years: 2 years of increase and 1 year adjustment. The existence of these short-term and long-term price fluctuation factors has brought great fluctuations to the profits of chicken farms and egg wholesalers. Listed egg futures will provide enterprises with tools to avoid the risk of price fluctuations.
(two) to promote industry standards and promote the development of standardization industry.
With the gradual improvement of China's animal husbandry standard management system and management institutions, the relevant departments have formulated industry standards in line with China's national conditions on the basis of drawing lessons from international standards, which has played an important role in promoting the technological progress related to eggs and standardizing the market order. However, most chicken farms that actively implement the egg industry standards are large in scale, advanced in technology and abundant in funds, accounting for a small proportion of China's total egg production. Therefore, it is necessary for China to continue to promote the existing industry standards.
The egg futures delivery standard of Dashang Institute is formed on the basis of comprehensive analysis of the advantages and disadvantages of existing domestic industry standards and drawing lessons from international standards, which conforms to the present situation of China's egg industry and can represent the future development direction. Listed egg futures will help to publicize and promote egg industry standards with the influence of futures market, which is of great significance to standardize and lead the development of the industry.
(3) It is helpful to promote the large-scale breeding of laying hens and enhance the industry's ability to resist risks.
The production scale of laying hens and eggs in China is generally small, most farmers have no long-term planning, and their development is relatively blind, which seriously affects the improvement of technical level and standardization of the industry and is not conducive to the sustainable development of the whole industry. Referring to the development law of egg industry in developed countries, it is the future development direction for aquaculture enterprises to make great efforts and take the road of intensive farming. Listed egg futures can provide hedging tools for enterprises, stabilize the huge impact caused by cyclical fluctuations in the industry, help attract large funds to invest in the industry, optimize the industrial structure, improve the anti-risk ability of the whole industry, and promote the stable development of the industry.