The annual slaughter volume of pigs in China remains above 600 million, with a designated slaughter rate of less than 40%. The concentration of the top four slaughter enterprises is less than 10%, far below the level of over 70% in mature markets.
There are a total of 20658 domestic slaughtering enterprises, but there are very few large-scale slaughtering enterprises (with an annual slaughter volume of over 20000 heads and a semi mechanized level). Only 2076 semi mechanized enterprises with an annual output value of over 5 million, accounting for only 10.5% of the total number of slaughtering enterprises in the country, and the remaining 17000 slaughtering enterprises have a low level of mechanization, mainly distributed in towns and villages; The total annual slaughter capacity of the top 10 enterprises in the industry is about 170 million heads, accounting for about 23% of the national pig slaughter volume. Due to severe overcapacity, even large-scale slaughtering enterprises have a low operating rate of about 30% -50%. The actual slaughter volume of the top 10 enterprises is about 70 million heads, accounting for only 13% of China's pig slaughter volume.
The market share of the top three slaughterhouses in the United States is as high as 61%, while the market share of the top three slaughterhouses in China is only 20%. The largest slaughtering enterprise in the United States, Smithfield, accounts for 31%, while China's largest slaughtering enterprise, Yurun Group, accounts for only 7.7% (including poultry and other animals). In this sense, there is enormous room for improvement in the concentration of China's slaughter and processing industry.
Related report: Research Report on Supply and Demand Forecast and Development Trends of China's Pig Slaughtering and Processing Market from 2017 to 2022 released by Zhiyan Consulting