Aquaculture Profitability Under Pressure + Accelerated Capacity Clearance, Focus on Livestock Farming Configuration Opportunities

Ask AI · How will accelerated capacity clearing reshape the industry landscape?

【Recent increases in raw material costs for feed may further squeeze profit margins for breeders】

Industry experts point out that as of March 15, pig prices are 10.09 yuan/kg, down 1.4% week-on-week; last week, the average loss per pig from self-breeding and raising was 283 yuan, and the average loss for purchased piglets was 118 yuan. The utilization rate of second breeding pens has increased to about 30-40%, but this has limited support for pig prices; the average weight of pigs sent to market continues to rise; combined with the ongoing culling of piglets and breeding sows, it is expected that supply pressure will persist into the first half of 2026, and pig prices may continue to be under pressure. However, recent increases in feed raw material costs may further squeeze profit margins for breeders, and it is expected that the deep ongoing losses in breeding sows will lead to continued capacity reduction.

In terms of fundamentals: the pig industry remains stable with signs of marginal improvement, and related indices and ETF products are currently at low levels, offering good valuation and cost-effectiveness. Additionally, the market and growth phases are undergoing periodic adjustments, and the breeding sector with better safety margins is worth关注。

【CSI Livestock Breeding Index positioning】

1. High-purity targets: “High pig content,” high concentration;

2. Style rotation tool: a style allocation tool, as a potential component in “growth-value” style rotation strategies;

3. Left-side layout tool: low valuation and low position, serving as a pro-cyclical layout tool to participate in industry recovery.

Related product: Ping An CSI Livestock Breeding ETF (516760.SH).

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