Liu Yonghao, Qin Yinglin, Wen Zhifen, Lin Yin Sun, and Liu Chang discuss the swine industry—what do these industry leaders think about the sector?

Liu Yonghao, Chairman of New Hope Group Co., Ltd., was the first to share his insights. Liu Yonghao noted that this is a special meeting, as a new industry landscape is taking shape at this critical juncture. With much work still to be done, the impact of the previous African swine fever outbreak on China’s hog industry is gradually waning, and the industry is steadily recovering. Last year, China suffered losses of over 40% in its breeding sow population, and pork prices surged threefold. The African swine fever has brought profound changes to the central government, local authorities, pig farmers, and ordinary citizens alike. According to Liu Yonghao, over the past two years, more than 1,000 domestic enterprises have shifted from real estate into the hog-raising business. Coupled with adjustments in national policies—such as those related to environmental protection, funding, and loans—pig production capacity is rapidly rebounding.

△ Liu Yonghao, Chairman of New Hope Group Co., Ltd.

Today, new challenges of the times have arrived. Liu Yonghao believes that five “new” aspects are particularly important in pig farming. 1. New mechanism. African swine fever presents an opportunity for transformation, driving the industry’s development. New mechanisms and a new culture should align with this trend. 2. New Youth. Enterprises need fresh blood to drive them forward. 3. New technology. There is no doubt that technology is the primary productive force. According to Liu Yonghao, New Hope has invested considerable effort in technology, particularly in breeding. 4. New track. Liu Yonghao pointed out that today, the profitability of pig farming in European and American markets is not high because of intense market competition and the lack of government support and guarantees. Drawing an analogy to China’s pig farming industry, it’s particularly important to develop a complete industrial chain. Therefore, New Hope has stepped up its efforts to expand its industrial-chain layout and has undertaken extensive work across both upstream and downstream sectors. 5. New responsibilities. New Hope possesses the characteristics of a social enterprise, and the cornerstone of a social enterprise is precisely identifying where social responsibilities lie and taking the lead in addressing them. New Hope is also putting these responsibilities into practice through integrated crop-and-livestock farming and by training new-generation farmers, and it will continue to do so in the future.

Liu Yonghao summarized that the reason for sticking with pig farming lies in corporate responsibility and the industry’s mission. It’s a good thing that everyone has been able to smoothly navigate these difficult times. At the same time, while the state is encouraging large enterprises to scale up, it’s also leaving room for small-scale farmers, which has played a positive role in restoring hog production capacity. It’s precisely because of the joint efforts of every single practitioner that the pig farming industry has reached where it is today!

Mu Yuan, Qin Yinglin: How to Build an Industry Ecosystem and Achieve Self-Discipline and Self-Protection?

Drawing an analogy to the low profitability of pig farming in European and American countries—and the fact that over 1,000 U.S. farms have filed for bankruptcy—Qin Yinglin, Chairman of Muyuan Foods Co., Ltd., calls for reflection: How can we build an industry ecosystem that fosters self-discipline and self-protection? Qin Yinglin believes that the large number of U.S. farms filing for bankruptcy... It’s not because they’re being raised poorly; rather, they’re all being raised equally well, leading to overcapacity. On the surface, the high debt levels and unsustainable development of these farms appear to be the result of their over-reliance on a debt-driven economic model. In reality, however, the entire industry ecosystem is simply no longer viable. Similarly, today’s Chinese automotive manufacturing industry—where vehicle quality continues to improve while costs keep falling—is ultimately facing an oversupply. The root cause of this predicament lies in the fact that the industry ecosystem itself can no longer support the sustained growth of enterprises.

△ Qin Yinglin, Chairman of Muyuan Foods Co., Ltd.

In response, Qin Yinglin proposed: The industry must jointly build an ecosystem, embrace challenges, and achieve common development. First, the industry ecosystem must embrace integrated development, innovating and conducting research with Chinese-style confidence. Second, we should embrace change, respect technology, and leverage a diverse talent pool. Third, we must control costs and provide consumers with high-quality, affordable pork products. Fourth, environmental protection requires higher standards—achieving zero emissions, eliminating odors, reducing smog, and promoting low-carbon production. Fifth, food safety must be rigorously ensured. Sixth, we need to enhance the value of each link in the industrial chain and jointly build a thriving industry ecosystem.

Qin Yinglin stated that on this path, self-discipline has three criteria for evaluation, namely: Friendly to peers, friendly to the industry, and friendly to society Win-win cooperation is the right approach—companies in the same industry should collaborate and develop together. We must build an industry that is friendly, takes responsibility seriously, and leaves no hidden risks behind—this benefits the entire industrial chain. As for social friendliness, it means ensuring robust environmental protection, high-standard food safety, and animal welfare.

Wen Zhi-fen Wen: African swine fever is reshaping the livestock farming landscape; the pig farming industry needs to pay attention to the following three points.

Wen Zhifen, Chairman of Wen's Food Group Co., Ltd., stated that the main impacts of African swine fever on China's pig farming industry are: 1. Pandemic prevention technology. Before this, disease prevention strategies relied heavily on vaccines. However, following the outbreak of African swine fever, the pig farming industry has gradually realized that it’s possible to prevent diseases without relying on vaccines—by adopting other measures instead. 2. The impact on traditional small businesses and farmers. Although the state also encourages and supports small-scale farmers in resuming production, large-scale enterprises are more competitive than smallholders. Smallholders are also more vulnerable to gaps in disease prevention and control. Coupled with uncertainties such as fluctuating pork prices and piglet prices, it’s becoming increasingly difficult for smallholders to continue their development. 3. Impact on enterprises with weak capital strength. Small and medium-sized enterprises are mostly in trouble; even if they want to resume production, they’ve already lost both talent and capital, making their future survival quite difficult. 4. Impact on the breeding and seed supply system. The risk of introducing new breeds has significantly increased with the arrival of African swine fever. To reduce the number of breed introductions, some breeding enterprises have already adjusted their operational models. 5. Impact on the production and sales model. After the African swine fever outbreak, both pig transportation and sales have been severely restricted.

△ Wen Zhifen, Chairperson of Wens Foodstuff Group Co., Ltd.

In response, Wen Zhifen stated that the domestic aquaculture landscape has undergone a shift, and aquaculture enterprises should focus on the following three key areas. 1. Risk hedging mechanism. The livestock industry carries risks but also holds significant opportunities. It’s crucial to skillfully leverage the hedging mechanism between spot and futures markets. The livestock industry should remain centered on breeding itself while simultaneously developing and strengthening the entire industrial chain. 2. Pay attention to the relationship between speed and safety. Both excessively rapid or overly slow growth pose risks; every enterprise needs to find its right positioning. 3. Cost management. Wen Zhifen believes that cost and quality are perennial themes in agricultural product production and sales, and as long as pig farming enterprises effectively manage their costs, they will surely go further.

Zheng Bang Lin Yin Sun: How can we “raise well” and achieve “raising more”?

Lin Yin Sun, Chairman and President of Zhengbang Group Co., Ltd., shared insights on the topic “Only by ‘raising well’ can we ‘raise more.’” So, what does it mean to “raise well”? Lin Yin Sun explained that pigs should have more offspring, fewer deaths, and faster growth; pig farms should achieve automation, intelligence, and IoT connectivity; and for the surrounding communities, pig farms must be environmentally friendly and sustainable. According to Lin Yin Sun, as of October 26, Zhengbang’s breeding sow inventory reached 1.108 million heads, and it is projected that the breeding sow inventory will reach 3.5 million heads in 2021. Over the next three years, Zhengbang plans to establish a swine industry layout with an annual production capacity of 100 million pigs.

△ Lin Yin Sun, Chairman and President of Zhengbang Group Co., Ltd.

Lin Yin Sun believes that, Good rearing practices hinge on cost management—healthy, well-fed pigs are the key. We must focus on cost reduction and build capabilities across the entire industry chain and value chain. By cutting costs, we can transform large corporations into companies that belong to everyone. While raising pigs well, we must also innovate pig farming practices. Lin Yin Sun stated that innovating pig farming requires redefining new concepts in pig farming and giving equal weight to three key elements: technology, talent, and management. Humans are highly evolved animals; repetitive labor can lead to burnout. It is through continuous creation that we can achieve innovative forms of work. In addition, we must pay close attention to environmental protection, embrace sustainable development, and conserve resources.

Finally, Lin Yin Sun expressed his hopes for the future of the industry. The dream of pig farmers in the future should be to elevate the industry to a higher level—making pig farming easier, more enjoyable, and more fulfilling. He hopes that all pig farmers will maintain firm confidence, focus single-mindedly on reducing costs, delivering outstanding work, improving the environment, and enjoying happy pig farming—all while advancing together.

Liu Chang of New Hope Liuhe: Cyclical industries need to maintain a sense of awe and respect; while sticking to the fundamentals, they must also embrace innovation.

Liu Chang, Chairman of New Hope Liuhe Co., Ltd., shared four key words. The first is “reverence.” “This industry demands reverence because it’s all about life,” Liu Chang said. He believes that what makes this industry both challenging and fascinating is that it embodies two seemingly contradictory aspects: on one hand, the logic of industrialized production, and on the other, the essence of life itself. Striking the right balance between these two—between industrialization and life—is crucial. We must respect the industry, respect its cycles, and above all, respect life itself.

△ Liu Chang, Chairman of New Hope Liuhe Co., Ltd.

The second keyword is: Persist Liu Chang stated that, much like the corporate culture of New Hope, the essence of this industry lies in being deeply rooted in the earth. In this industry, it’s essential to understand and abide by its inherent rules, and to remain steadfast in one’s approach. The industry experiences both ups and downs; during downturns, companies should pursue moderate diversification, while during upturns, they should stay firmly committed to the industry itself—remaining unwavering through good times and bad, embracing a long-term perspective, and using a long-term mindset to repay and deeply root themselves in the land.

The third keyword is: Learning Liu Chang believes that the nature of this cyclical industry makes it difficult for people with less-than-ideal character to stick with it long-term. If someone aspires to do something kind and meaningful for the world, this industry could not be more suitable. Every teacher in this field is truly worthy of being studied and learned from.

The fourth keyword is: With intention “Having a ‘heart’ refers to having a heart for upholding the business, a heart for technology, and a heart for innovation.” Liu Chang stated that having a “heart for upholding the business” means engaging with our predecessors with an attitude of gratitude and safeguarding this industry; having a “heart for technology” means leveraging technological tools to drive the industry’s development; and having a “heart for innovation” means seeking new hope, finding reasons for the enterprise to keep thriving, and creating new value.