Accelerated beef price increases seasonal factors are the main reason

Since the beginning of this year, beef prices have been steadily rising. According to the monitoring of the Ministry of Agriculture, as of 14:00 on December 15, the average price of beef in the national wholesale market was 35.48 yuan/kg, which was 0.1% higher than the previous day. In the middle of May, the average wholesale price of beef was 32.26 yuan/kg. Based on this, the price of beef rose by nearly 10% in the past six months.

At the same time, Guangzhou media recently reported that the retail price of beef in some local markets rose by 10 yuan/kg in just one week. According to the data from the Agricultural Information Network, a nationwide wholesale market for beef with a wholesale price of over 40 yuan/kg is also not a minority. In Beijing Yuegezhuang agricultural product wholesale market, the wholesale price of beef has even reached 48 yuan/kg.

As the price of beef rises, related companies may benefit. Among them, Fucheng Wufeng (600965) is mainly engaged in beef cattle breeding, slaughtering, processing and sales of live cattle and beef products. The revenue from live cattle and beef accounted for 59% of the company's 2010 revenue. Regarding the reasons for the continued rise in the price of beef this year, Mr. He Yong, the company's securities affairs representative, said that it was mainly driven by the price hikes of raw materials.

Industry analysts believe that since the beginning of this year, feed prices have been running at a high level, and beef production has been insufficient, resulting in an imbalance in supply and demand. Coupled with the increase in labor costs and transportation costs, the linkage effect of feeding costs and price factors has led to an increase in the retail price of beef. However, He Yong stated that the rising speed of raw materials did not engulf the price increase of products and should benefit the company.

New Hope (000876), a member of the Board of Directors Office of the Board of Directors, said in an interview with the Securities Times reporter that the company’s feed prices have not risen recently, and feed prices may fall at the same time as the price of feed ingredients goes down. The recent increase in beef prices has accelerated, the staff member said, largely due to seasonal factors.

A person in charge of Fucheng Wufeng Subordinate Factory told the reporter that the price of beef rose by a wave from September to October, and the recent fluctuations were modest. The price of live ox rose slightly. The person in charge said that with the arrival of the Spring Festival, prices may soon rise.