According to a report by the Financial Association on March 31 (reporter Zhang Chenjing and Wang Ping'an), piglet prices have risen for three consecutive weeks, and listed pig farming companies have also increased piglet sales. Financial Association reporters learned from industry insiders that breeding sows are currently concentrating in listed pig farming companies and group pig farming companies, with small-scale farmers mainly engaged in piglet fattening and secondary fattening, leading to the emergence of free-range farming companies.

According to data from Zhuochuang News, as of March 28, the price of piglets weighing 7 kilograms nationwide was 543.75 yuan per head. Zhuochuang News Analyst Zou Yingji told Financial Association reporters that the first quarter is typically the peak season for piglet replenishment. Since the beginning of 2025, piglet prices have shown a trend of rising first, then falling, and then rising again. Free-range companies and small to medium-sized farms have been actively replenishing piglets, while farming groups have taken the opportunity to sell piglets at high prices, although some farming groups still choose to keep them for their own use, leading to a relatively limited supply of piglets, which supports a volatile increase in piglet prices.

Industry insiders told Financial Association reporters: 'Generally, spring is the peak season for replenishment, and the current large-scale replenishment reflects an optimistic expectation for the market in the second half of 2025. Currently, piglet prices are at a high level, and the risk of market entry is considerable, with more and more people engaging in contract farming around.'

It is worth mentioning that listed pig farming companies are making corresponding sales adjustments. Muyuan Foods (002714.SZ) is adjusting its piglet and commodity pig sales according to market conditions, and in 2024, the proportion of piglet sales and sales volume of the company is expected to grow significantly. (See Financial Association report

("The Journey of a Pig: Risk Sharing of African Swine Fever, Listed Companies Selling Pigs in Multiple Weight Categories")

Since the beginning of this year, Muyuan Foods' piglet sales have again increased significantly, with sales from January to February increasing nearly 17 times compared to the previous year, accounting for nearly 20% of its total sales. Regarding the plans for market releases in 2025, Muyuan Foods has separately listed its piglet plans, expecting to release 72 million to -78 million commodity pigs and 8 million to -12 million piglets.

*ST Aonong (603363.SH) recently stated that currently, piglets account for a larger proportion of the company's pig sales, while fat pigs account for a smaller proportion. Shenzhen Kingsino Technology (002548.SZ) responded on the investor interaction platform that the company's proportion of piglet sales is dynamically adjusted based on market conditions and business operations.

An expert indicated to the Financial Association reporter that currently, breeding sows are concentrating towards large-scale farms, as scattered farmers are giving up breeding sows and are increasingly shifting to fattening. With the higher risk of pandemic, the risks faced by fattening are more controllable, and the capital turnover speed for fattening is faster, yielding quicker results. Due to the more stable production and operation behaviors of large-scale farms, this is more favorable for preventing risks in the Industry and stabilizing production capacity, which can to some extent prevent significant fluctuations in hog market prices.

Zou Yingji further stated that since the outbreak of pig diseases in the fourth quarter of 2023, the hog farming Industry has seen a growing trend where operators are shifting from self-breeding to piglet fattening and secondary fattening farming modes, along with the rise of free-range companies. Currently, listed pig companies and group pig companies are increasing piglet sales, filling the gaps left by small and medium-sized operators, which increases the market share of piglet fattening modes, but it will not fundamentally change the hog farming model.