CAITONG SECURITIES·2025-11-23 12:47Core Insights - The report maintains a positive outlook on the agricultural sector, particularly in the pig farming and pet food industries, highlighting potential growth opportunities and ongoing challenges in supply and pricing [2][4][6]. Pig Farming - The pig farming sector is experiencing a downward trend in prices, with the average price of live pigs at 11.60 CNY/kg as of November 20, reflecting a week-on-week decrease of 2.11% [29][30]. - The number of breeding sows has decreased, with a reported month-on-month decline of 0.77% in October, indicating ongoing supply pressures [20][6]. - Profitability remains a concern, with losses reported at -135.90 CNY per head for self-bred pigs and -234.63 CNY per head for purchased piglets as of November 21 [33][38]. Poultry Farming - The poultry sector is seeing a rise in white chicken prices, with an average price of 7.15 CNY/kg as of November 21, up 0.42% week-on-week [39][36]. - The outbreak of avian influenza in overseas markets is creating uncertainty in the supply chain, which may benefit the white feather chicken industry in the long term [36][37]. Animal Health - The animal health industry is expected to rebound as demand for biological products increases, driven by a recovery in livestock profitability and inventory levels [44]. - Recent developments in vaccine research, particularly for African swine fever, are anticipated to stimulate interest in the sector [44]. Seed Industry - The prices of key agricultural commodities such as wheat and corn have shown slight increases, with wheat averaging 2505 CNY/ton and corn at 2280 CNY/ton as of November 21 [47]. - The report emphasizes the importance of enhancing food security and promoting the adoption of biotechnology in the seed industry [47]. Pet Industry - The pet food market is experiencing robust growth in domestic sales, with e-commerce sales up 19% year-on-year in October [55]. - Notable performance during the Double Eleven shopping festival indicates a strong market presence for domestic brands, with significant sales increases reported for several companies [56]. - Export figures for pet food show a decline, with October exports at 772 million CNY, down 15.9% year-on-year, but the impact of tariff disruptions is expected to be limited [54][52].