Expanding production and stabilizing pig prices 1) The price of pigs is difficult to drop at a high level of 100 yuan! Taiwan Sugar's new pig farm will be fully completed next year to increase supply

Pig prices remain high, with the wholesale price of gross pigs remaining at a high level of 100 yuan per kilogram, making catering and pork processing businesses unable to bear the burden. However, Taiwan Sugar, one of the country's major pig farmers, is gradually coming to the end of its modern pig farm reconstruction project. The last three are expected to be completed in June next year. As pigs gradually enter the farm and production capacity gradually recovers, Taiwan Sugar estimates that the number of pigs raised next year is expected to increase by 180,000 to 200,000. This will increase domestic pork supply and create room for adjustment in high-end pig prices.

Since June this year, domestic wholesale pig prices have been fluctuating around 100 yuan per kilogram. Well-known Hsinchu meatball manufacturers have lamented that they must use fresh pork for production. The price of pigs has remained above 100 yuan per kilogram for several months, and they cannot pass it on to consumers at will. It is really hard to bear.

Domestic pig supply is affected by multiple factors. As Taiwan Sugar cooperates with the reconstruction of modern pig farms, the number of pigs raised has dropped from a peak of about 330,000 pigs in the past to about 140,000 pigs last year. It has only gradually rebounded to about 160,000 pigs this year. The supply has not yet fully recovered. Industry insiders revealed that imported pigs are too expensive due to tariff issues, which reduces import incentives. After the edible oil incident, the shortage of soybean meal, an important source of feed, has soared by 20%, which has greatly increased the feeding costs of pig farmers. In addition, rising wages and electricity bills have increased the operating pressure of pig farmers.

Fortunately, the renovation of 13 new pig farms of Dazhu Nongtai Sugar Company has finally entered the final stage. Four of the second phase have been completed this year, and the remaining pig farms in Chiayi Lucaochang, Pingtung Xinchuochang and Silin have to wait until June next year. The director of Taiwan Sugar said that after all modern pig farms are in place, the total number of sows will reach 26,500. Currently, about 160,000 sows are being raised, which can be gradually returned to more than 200,000. If all conditions go well, the annual sales volume can reach up to 540,000. However, the production capacity still needs to be gradually increased in line with the completion of the pig house, the entry of pigs and the breeding process. It cannot be fully loaded immediately after the hardware is completed.

As for the price of pigs, the director of Taiwan Sugar believes that the current price of around 100 yuan per kilogram mainly reflects the increase in breeding costs such as feed, and is still within a moderate range. Taiwan Sugar will also adjust the amount of pigs produced based on market supply and demand. If necessary, it will extend the shelf life of meat through self-operated slaughtering, frozen storage and processing to avoid short-term oversupply or under-digestion by the market. As Taiwan Sugar's pig production gradually recovers, it is expected to increase the elasticity of domestic pork supply in the future and provide a buffer for high-end pig prices.