Aigefield Luonishan's first-quarter profit shrank nearly half

The pig industry has lost 4 months in a row, allowing companies to expand their pig-raising capacity in the past two years to begin tasting the bitter fruit and concentrating on the elimination of sows. Feed.nasdaq, which is headquartered in Nanchang, Jiangxi Province, has lost half of its profits in the first quarter, according to Aigefield, the other leading enterprise Luonishan (000735).　　SZ) is similar. Choyu, vice president of China Animal Husbandry Association, said to the first financial daily: "Corn prices rose about 30% year-on-year, feed prices, pork prices are not up, resulting in farmers more and more loss, only to reduce the pig's stock, pig concentrated in the market to increase the supply of pork, the price is more not to come, Farmers began to focus on the elimination of sows, and the data we had, the number of sows was reduced by about 10%.　　Feng Yonghui, chief adviser to the Pig Search network, said at present, the ratio of pigs to 3.6:1, has been 18 weeks (ie 4.5 months) below the equilibrium level, most of the small and medium-sized farmers continue to lose 4 months, the phenomenon of capital chain rupture, if the price of pigs can not be restored to the cost line, the capital chain will be more and more broken. Aigefield 2009 680,000 Pigs, ranked the national pig breeding enterprises in the forefront. Aigefield this year, the company's income of 52.86 million U.S. dollars, compared with the same period last year, an increase of 19.43 million U.S. dollars, but the cost also increased by 18.91 million U.S. dollars to 46.54 million U.S. dollars, deducting various operating costs, operating profit of 1.62 million U.S. dollars, compared with the same period in the same year, 3.18 million dollars, reduce 49.1%　　Net profit was slashed from $3.02 million trillion last year to $1.07 million trillion, down 64.6%. Pig farming is one of the main industries of Luonishan, although there are real estate and education, veterinary drugs and other business as a buffer, Luonishan's performance is also not optimistic, the first quarter of this year Luonishan operating profit was reduced by 512.64%, for-24.18 million yuan, fortunately there are about 30 million yuan of government relocation compensation,　　To make the Luonishan attributable to the shareholders of the listed company's net profit to 3.85 million yuan, but the net profit still decreased by 49.43%. Industry insiders believe that 2007-2008 years, domestic pork prices soared, attracting many enterprises to invest in pig breeding projects. In 2008, Aigefield used the 100 million dollars raised to acquire and invest in Jiangxi, Shanghai, Fujian, Guangxi, Hainan and other countries to build a number of pig farms and commercial pig production base, was mistaken for Goldman Sachs in the domestic industry to enter the agent.　　and including Cofco Group, Zhengda Group, the New Hope Group, the state technology and the double sinks group, Yurun group are in or about to launch the pig breeding project, these newly launched pig production capacity to some extent, the current situation of pork supply surplus. Feng Yonghui said that if pork prices continued to remain current in the next 2 months, sow herds would be reduced by 20%, which could reproduce the surge in pork prices after a 2007-year supply cut.