GF SECURITIES·2026-01-04 11:14Core Insights - The report highlights a significant rebound in pork prices before the New Year, with the average price of lean pigs reaching 12.39 CNY/kg, a 7.6% increase from the previous week, although it remains 19.7% lower year-on-year [5][13][23] - The implementation of a safeguard policy for beef import quotas is expected to alleviate domestic supply pressures, with a total import quota of 2.688 million tons for 2026, which is 93.5% of the total imports in 2024 [14] - The report recommends focusing on leading companies with cost advantages in the livestock sector, particularly Wens Foodstuff and Muyuan Foods, while also highlighting potential turnaround candidates like Zhengbang Technology [5][13] Livestock Farming - The report notes that the pork market is under pressure due to significant losses in the industry, but the reduction in production capacity is expected to accelerate, leading to a more stable price environment in the first half of 2026 [5][13] - For poultry, the average price of white feather chickens is reported at 3.78 CNY/lb, down 3.1% week-on-week, while yellow feather chicken prices have shown slight increases, benefiting companies like Lihua and Wens [5][13][32] Dairy Industry - The current price of fresh milk in major production areas is 3.03 CNY/kg, stable week-on-week but down 3.2% year-on-year, indicating a balance in supply and demand as inventory levels decrease [14] - The safeguard measures on beef imports are anticipated to support domestic beef prices, which are expected to rise, enhancing the performance of companies like Yurun and Modern Farming [14] Feed and Animal Health - The report indicates a rebound in aquaculture prices due to holiday demand, with significant increases in white shrimp prices leading up to the New Year [15] - The feed industry is facing intense competition, but leading companies are expected to gain market share due to their cost advantages, especially in international markets [15] Agricultural Sector Performance - The agricultural sector outperformed the market by 0.7 percentage points, with livestock farming and feed sectors showing the highest gains of 1.4% and 0.5%, respectively [21] - The report tracks various agricultural product prices, noting fluctuations in corn and soybean meal prices, with corn prices rising by 0.6% to 2352 CNY/ton [23][46]