In 221, major pig enterprises suffered a "bottom drop" and will expand against the trend in 222. Don't they know that the pig price will not be too high in 222? The answer is naturally yes, and the big pig enterprises are ready to "lower the pig price for another two years", so why do you want to expand against the trend if you know it?

here, we have to mention an official plan-the implementation plan of pig production capacity regulation (provisional) (hereinafter referred to as the "plan").

It is clearly stated in the "Program" that adjusting the number of fertile sows in each province (city) is the basic means to achieve the goal of overall stable pig production capacity. To put it bluntly, every province has an "index" for breeding sows. Provinces that fail to meet the index must find ways to increase the number of sows, and those that exceed the index must reduce the number of sows.

This means that the scale field should first compete with the pig farms in this province, and then compete with the pig farms in other provinces. Even if we know that there is not much profit in 222, we should bite our teeth and join the battle for the sake of long-term "market share".

With the continuous expansion and competition among pig farms, the pig industry began to enter the "involution". As we all know, since the price of pigs will not be too high in the future, we can only work hard on our own. For a time, pig enterprises began to fight for technology, capital and contacts, and made every effort to survive in this battle. Only by surviving can we continue to seize the qualification of "indicators" in the future.

It is no exaggeration to say that after this pig cycle, the "profiteering" era of China pig industry will come to an end, and the future will usher in a "low profit" era. Under the influence of low pig prices, many pig farms, especially retail investors, will choose to quit, which just gives pig enterprises an "opportunity" to seize the market. At this time, everyone will think that they chose to quit because the pig price is too low, rather than being squeezed out by anyone ...

The big pig enterprises have successfully seized this market share, and the "pig giants" know very well that expanding production is not an option.