According to data from Zhuochuang Information, the storage capacity of key slaughtering enterprises in the first quarter decreased first and then increased, with an average quarterly storage capacity rate of 64%, a decrease of 1.03% month on month and a year-on-year increase of 9.15%.
The lowest point of enterprise storage capacity ratio in the first quarter was in February. During the month, the demand in the end market was average, and the operation of the product market had not yet returned to normal. Intermediaries had a strong wait-and-see intention, coupled with recent poor transportation conditions, low market volume, and slow product delivery speed. Affected by major public health events in China, the situation of workers on duty is not good, the operating rate of slaughtering enterprises is limited, and the slaughter volume is low. In addition, some slaughtering enterprises have extended their holidays after the Spring Festival holiday, resulting in low production volume and a low inventory of enterprises.
In March, the number of chickens sold in the market was still low, but the production of slaughtering enterprises rose to the highest level in the quarter, and the supply of products steadily increased compared to last month. Due to insufficient demand in the end market, sluggish consumption in downstream catering and other industries, insufficient confidence in the future market among intermediaries, low enthusiasm for purchasing goods, poor product sales, significant pressure on manufacturers to ship, and negative effects on both supply and demand, the enterprise's inventory capacity has become the highest value in the first quarter.
The supply of feather chickens is expected to rise, and enterprises may continue to operate higher
According to statistics from Zhuochuang Information, the number of seedlings produced by seedling factories in the early stage is limited, and the number of breeding households replenishing the stock is relatively low. It is expected that the number of broiler chickens produced will still be relatively small in early April, and the supply of broiler chickens will increase in the latter half of the year. The enthusiasm for enterprise acquisition will stabilize, and it is expected that the operating rate of slaughtering enterprises in April will decrease first and then increase, with monthly average operating rates higher than in March.
From May to June, the demand in the end market may gradually recover, and the acquisition volume of slaughtering enterprises may increase. In addition, the stock of newly produced and molted parent generation chickens may increase, and the market emergence volume may increase significantly. In the later part of the second quarter, the domestic downstream chicken production volume will also gradually increase, and both supply and demand will boost the market. It is expected that the operating rate of slaughtering enterprises in the second quarter will steadily rise.