Si Chuan Ri Bao·2025-07-21 20:22Core Insights - The article highlights the unexpected profitability of Sichuan pig farming companies despite a nationwide decline in pig prices, indicating a successful adaptation to market pressures [2][3][4]. Group 1: Industry Performance - Sichuan pig farming companies have maintained profitability for 12 consecutive months, even as the average national pig price fell by 0.8% to 15.50 yuan/kg in the first half of the year [2][3]. - The total pig output in Sichuan reached 30.8 million heads in the first half of the year, marking a 1.0% increase year-on-year [3]. - The profitability of Sichuan pig companies is attributed to stable production scales and declining costs, with a notable example being the projected net profit of New Hope at 680 to 780 million yuan for the first half of 2025, representing over a 150% increase from the previous year [3][4]. Group 2: Market Dynamics - The article notes that the overall pig meat import volume in the first five months of the year was at a low of 450,000 tons, contributing to price stability [5]. - Sichuan's pig farming companies have avoided "internal competition" in production capacity, focusing on stability rather than aggressive expansion, which has helped maintain profitability [6][7]. - The average cost of pig farming in Sichuan has decreased, with companies like Juxing Agriculture aiming for a cost target of 6.5 yuan/kg, significantly lower than the industry average [7]. Group 3: Future Outlook - The article suggests that despite a recent decline in pig prices due to lower consumption expectations, Sichuan pig companies are likely to maintain profitability in the second half of the year, supported by seasonal demand increases and government policies aimed at stabilizing production [10][12]. - The Sichuan government has introduced measures to promote high-quality development in the livestock industry, including financial incentives for exceeding production targets [12].