A large number of pig farmers can't predict the market changes, but can only guide or decide the current economic behavior according to experience management, which is the fundamental reason for the periodic fluctuation of pig production in China for 3~4 years. Except 1999~2003, it was relatively stable, and other years fluctuated greatly. In this cyclical fluctuation, farms lacking scale advantages will become more and more difficult to survive and be eliminated by the market.
At present, the regional characteristics of pig breeding industry make the pig slaughtering and processing industry also present a highly decentralized pattern. In 2006, the output of live pigs reached 680 million, and the output of three leading enterprises accounted for less than 5%.
After the 1980s, the emergence of new technologies and the improvement of pig-raising specialization stimulated the emergence of large-scale pig-raising in the United States. With the decline in the price of live pigs and pork, a large number of small producers have been eliminated by the market, and the remaining producers have further expanded their scale to reduce costs. As a result, the number of pig farms decreased at that time, but the scale became larger and the geographical distribution tended to be concentrated.
The scale expansion trend of pig slaughtering and processing industry is also obvious. The way of signing long-term contracts between aquaculture enterprises and processing enterprises quickly replaced the original open market transactions. By 1999, nearly 60% of live pigs in the United States are produced through long-term contracts and vertical integration for many years. Market contract and production contract have become the main trading methods of American pig production enterprises and pork processing enterprises.
From 65438 to 0966, CME (Chicago Board of Trade) began to trade pig futures, and now the lean pig contract ranks second among the most active agricultural products contracts in CME. In the late 1980s, the pig breeding and processing industries in the United States began to scale up. After adopting the vertical integration strategy, the pig production in the United States tends to be stable, and the fluctuation range is further reduced. The pig futures can reflect the changes in the future pork spot market more timely and accurately.
The scale and vertical integration of pig industry in China will have a far-reaching impact on all aspects of pig industry chain, and will be actively developed and popularized in pig selection, feeding technology, feed, disease prevention and environmental protection. We are optimistic about the integration opportunities of pig breeding and pork processing industries, and optimistic about the leading enterprises with integration strength in pig breeding, pork processing and feed industries.