Core Viewpoint - The article discusses the current state and future expectations of the pig farming industry in Guangdong, highlighting the impact of diseases, weather conditions, and market dynamics on production and pricing. Group 1: Disease Impact - In early 2023, there were occurrences of pig diarrhea diseases in various regions, affecting supply and market sentiment [1][11][30] - The heavy rainfall in May and June also contributed to disease issues, impacting the number of pigs available for market [1][11] Group 2: Production Trends - The industry is expected to enter a slow reduction phase in production due to clear government targets for price stabilization and production cuts [2][13] - Major enterprises are likely to see a decrease in breeding costs in the second half of the year, maintaining a low-profit status [2][6] - The average cost of pig farming is around 13.3 CNY/kg, with potential for further reduction [6][19] Group 3: Price Expectations - Market sentiment is cautiously optimistic for price increases around August, but there are concerns about whether prices will exceed previous highs [2][16] - The southern provinces are currently showing positive price expectations, which may influence the overall market [2][13] Group 4: Company Insights - Company A has a stable production capacity of approximately 104,000 pigs, but has seen a decrease in monthly output due to disease impacts [5][8] - Company B plans to increase its annual output to 2 million pigs, with a current monthly output of about 150,000 [14] - Company D aims to increase its production capacity to 230,000 pigs, with a target of reducing costs to below 14 CNY/kg [19][21] Group 5: Trade and Market Dynamics - Trade flows primarily target the Guangdong market, with some exports to neighboring regions [9][22] - The demand for pork is expected to improve, particularly as the market enters a seasonal peak, although high prices may dampen consumption [10][15] - The overall feed sales in June showed a 4-5% increase, indicating stable demand in the market [18][25]