NDRC Officials: The State Will Launch A Heavy Blow Against Farm Products Speculation.

Zhou Wangjun, deputy director of the price division of the national development and Reform Commission (NDRC), told the economic reference newspaper on 24 day that the national development and Reform Commission, with the Ministry of Commerce and the State Administration for Industry and commerce, will organize special actions to strengthen market supervision and crack down on the behavior of hype agricultural products, promote good faith management and rational consumption, and leave no opportunity for speculation and speculation.

The head of the national development and Reform Commission (NDRC), on the 22 day, also said at the National Conference on price directors that we should improve the price information system, master production volume, paction volume, production cost, circulation price increase, government reserve, capital flow, inventory change and so on, find that abnormal situation should be quickly identified, timely reported, and resolutely prevent and stop speculation and speculation of "venture capital".

Since the beginning of this year, China's grain, corn, corn and other grain varieties, garlic, vegetables, mung beans and other agricultural and sideline products, as well as 37 Chinese herbal medicines prices have risen more, not only by the Southwest drought, the Middle East and other regions of the adverse effects of low-temperature weather, but also with a small number of operators to fabricate false information, malicious hoarding, driving up prices are closely related.

"The liquidity in the market is relatively abundant. In the case of the property market cooling down and the stock market downturn, the" idle capital "of the community is easy to turn its attention to agricultural products.

Because the supply and demand of domestic agricultural products are in a tight balance, those agricultural products that can be preserved for a long time are likely to become the targets of speculation.

Zhou Wangjun said.

Zhou Wangjun also revealed that, as the price department of the State Council, the national development and Reform Commission will, on the basis of reporting to the State Council, gradually establish a sound regulatory plan for the price fluctuation of various market regulated commodities related to food, pork and vegetable basket, which are closely related to people's lives.

Data show that in 3 and April, the price of vegetables increased by 18.5% and 24.9% respectively over the same period last year.

However, the National Bureau of Statistics said 24 days ago that although the prices of agricultural products such as garlic and vegetables have skyrocketed recently, the proportion of vegetables in C PI is limited, and its short-term surge has limited impact on the CPI index.

The above leaders stressed that the rising prices of daily necessities will increase the living expenses of the people to a certain extent, and increase the inflation expectations brought by the abundant liquidity. The price departments at all levels should strengthen the supervision and control of price regulation and effectively stabilize inflation expectations.

It is worth noting that since May, with the weather warming, vegetable prices across the country have generally come down.

Data from the price monitoring center of the national development and Reform Commission showed that the average retail prices of 15 main vegetable varieties in 36 large and medium-sized cities in the middle and May were 3.51% and 7.96% lower than that in the previous ten days, respectively.

According to the analysis of the price monitoring center of the national development and Reform Commission, the impact of abnormal weather changes on vegetable production is decreasing, and the market supply is gradually increasing.

Later, with the arrival of summer vegetable production and supply season, the open field vegetables will be listed in large quantities, and vegetable prices will be further reduced.

{page_break}

Nevertheless, the responsible person stressed that we should actively apply the price adjustment fund to support price monitoring, information dissemination, construction of a non-staple food production base and market system, and grant temporary price subsidies to low-income groups in urban and rural areas.

Zhou Wangjun told the economic reference daily that 7 provinces in Zhejiang, Jiangsu and Shandong have set up a dynamic adjustment mechanism linking price rise with minimum protection standard, minimum wage standard and retirement pension standard. The national development and Reform Commission recommends that provinces and autonomous regions should push this system as soon as possible to ensure that the living standard of low-income groups will not be reduced because of rising prices.

From 1 to April, consumer prices rose by an average of 2.4%.

To this end, the responsible person said, at present, vegetables and other food prices are gradually declining as the temperature picks up. Although the price rise in the second half of last year has more influence on the ending of this year, there is a foundation for achieving an annual average consumer price increase of around 3% in the case of overall market oversupply and ample government reserves.

The NDRC had predicted that in the two quarter, the overall level of residents' prices will continue to rise slightly. The consumer price index will probably increase by about 3% in the next two months, and the average increase in the first half of this year will be around 2.5%.

The National Bureau of statistics and the national development and Reform Commission discussed the topic of price recently. The media reported that the two major departments also issued clarification in various channels. Among them, the NDRC recently talked about prices (May 14th, 19 and 24) in the recent three, and actively responded to the hot topics of public concern.

Statistics Bureau experts say vegetable short-term inflation is limited.

According to the latest data released by the National Bureau of statistics, the national consumer price index (CPI) increased by 2.8% in April compared with the same period last year.

In March and April, the price of vegetables in China increased by 18.5% and 24.9% compared with the same period in March and April, while the number of vegetables increased by 32.7% and 32.6% respectively.

But from CPI alone, the statistics show very low. Why does this happen? The experts of the National Bureau of statistics explain that CPI is not a price increase of a single commodity, but an overall indicator, reflecting the price changes of goods and service items consumed by more than 1 billion 300 million people nationwide.

And people's feelings of rising prices are often the feelings of a single commodity price changes.

In addition, some goods and services are regular consumption items, and the people are more sensitive to the price increase.

For example, the price of garlic has skyrocketed, and people are feeling very deep. However, the price of pork is probably lower than that of the same period last year, and the price of other vegetables has not gone up like garlic.

Although vegetables are increasing a lot, the proportion of vegetables in CPI is limited, and the short-term inflation has limited impact on the CPI index.

For people who feel that the cost of living is getting higher and higher and whether CPI is underestimated, Statistics Bureau experts point out that this is the difference in personal affordability.

For example, most of the expenses of low-income families are concentrated on food, water, electricity and other necessities. In the eight categories of commodities and services currently surveyed by CPI, food and housing are the top ones, so low-income families will feel that the price increases and the pressure of life increases.

For high-income people, the proportion of food expenditure to total expenditure is small, and the prices of cars, cell phones, computers, LCD televisions and so on are mostly on the price cutting trend, so they are not so sensitive to the price increase, and the affordability is also stronger.

Generally speaking, ordinary residents are concerned about "food, clothing, housing and housing" and other commodities and services that are closely related to daily life.

The scope of the CPI survey is more extensive. It is a weighted average. It includes both the rising varieties and the falling varieties. If the residents compare the price of the goods or services that are rising with the total level of the consumer price, the CPI will be underestimated.

For some netizens, the price of vegetables is "fever", and the CPI data do not reflect the real inflation level.

Price statistics expert Pang Xiaolin said that if we compare the CPI released by the state with every commodity we touch on street shopping, we will often have misunderstandings or delusions, because different people have different feelings about prices. Different consumer groups have different feelings about prices. The price increases in different regions are not the same, so we all have different feelings about prices.

There are many reasons for this difference. It is also one of the questions that CPI and media have questioned in recent years.

{page_break}

The development and Reform Commission frequently wrote articles about prices, emphasizing stabilizing market prices.

Coincidentally, the national development and Reform Commission also published a news on its website on 24 th. The content is to convene the national price bureau meeting, deploy the supervision over price regulation, and stabilize the market price.

In the deployment of this regulation, the NDRC also emphasized that consumer prices rose by an average of 2.4% in 1-4.

At present, the prices of vegetables and other foods are gradually dropping as the temperature picks up. Although the price increases in the second half of last year have more influence on the year-end, but in the case of oversupply of the market and ample government reserves, the average annual increase in consumer prices is about 3%.

The meeting also stressed that price stability is related to the overall situation of economic and social development.

The rising prices of daily necessities will increase the living expenses of the people to a certain extent and exacerbate the inflation expectations brought about by the abundant liquidity.

The meeting called for price departments at all levels to attach great importance to strengthening supervision and control of price regulation, effectively stabilizing the significance of inflation expectations, and integrating ideas and understanding into the various arrangements of the central government, so as to do a good job in stabilizing prices.

In the middle of May, the NDRC frequently published articles on its website to talk about prices.

In May 14th, the head of the national development and Reform Commission's price department answered the reporter's questions on the current price situation, and the responsible person said that after the three quarter, the CPI growth rate will gradually decline as the tail factor gradually disappears.

After three days, the national development and Reform Commission issued a focus on prices again.

The NDRC said in the two quarter that CPI will continue to maintain a moderate upward trend. In the two quarter, with the improvement of weather and the growth of supply, the prices of fresh produce, fresh fruit and other agricultural products (000061) will drop somewhat.

Since May, the prices of vegetables in Beijing, Shenyang, Lanzhou, Chongqing, Wuhan, Nanjing, Hangzhou and other regions have begun to drop sharply due to better weather.

On the 9 th of this month, the average wholesale price of 25 vegetables in Beijing dropped by 21% compared with the beginning of May.

The price monitoring center of the NDRC also released a monitoring data on vegetable prices 24 days ago. The data show that in May 19th, the average price of 24 vegetable varieties in the main agricultural products (000061) wholesale market decreased by 17.88% compared with the end of April, and the price decreased weekly.

With the arrival of summer vegetable production and supply season, the open field vegetables will be listed in large quantities, and vegetable prices are expected to decline further.

It is said that some people have driven up the agricultural and sideline products such as garlic, vegetables, mung beans, and the prices of Chinese herbal medicines such as the 37 class.

The national development and Reform Commission (NDRC) said that the prices of vegetables and other foods are gradually dropping as the temperature picks up. Although the price increases in the second half of last year have more impact on the year-end, in the case of oversupply of the market and ample government reserves, the annual increase in consumer prices (CPI) is about 3%.

According to the press release published yesterday on the website of the NDRC, the national price bureau meeting was held in Beijing on 22 th, and the NDRC made the above statement at the meeting.

Statistics from the National Bureau of statistics show that the average CPI rose by 2.4% in 1-4 months, rising by 2.8% in April, which is approaching 3% of the government's early red line.

According to the press release, the national price bureau meeting held in Beijing is aimed at requiring "price departments at all levels to take precautions against the dangers and take effective measures to achieve stable and rapid economic development and adjust the economic structure to achieve a stable price environment".

At the meeting, the NDRC pointed out that since the beginning of this year, prices of rice, corn and other grain varieties, garlic, vegetables, mung beans, and other 37 kinds of Chinese herbal medicines have increased, which is affected by the adverse weather conditions such as drought in Southwest China, low temperature in eastern and central regions, and closely related to a few operators fabricating false information, malicious hoarding and driving up prices.

Observers pointed out that, as a price control department, the NDRC's position was slightly different from that of some other ministries and officials. The latter said they did not agree with the viewpoint that idle capital should raise prices.

"The rising prices of life necessaries will increase the living expenses of the people to a certain extent and exacerbate the inflation expectations brought about by the abundant liquidity."

The development and Reform Commission said, "price stability is related to the overall situation of economic and social development."

{page_break}

The NDRC has deployed a series of actions at the meeting:

First, we should improve the price information system, grasp the specific conditions of production volume, paction volume, production cost, circulation price increase, government reserve, capital flow and inventory changes, and resolutely prevent and stop speculative speculation of "idle capital".

Two, research and improve the regulation methods of grain, pork, sugar and cotton prices, and adopt information guidance, support production, production and marketing linkage, reserve huff and puff, organization and pportation, promoting circulation, and necessary temporary price intervention.

We should use price adjustment fund to support price monitoring, information dissemination, construction of non-staple food production base and market system, and grant temporary price subsidies to low-income groups in urban and rural areas.

Three, we should study and formulate standards and measures to crack down on fabricating, distributing price information, malicious hoarding, driving up profits, and colluding prices.

We should focus on investigating and dealing with illegal and illegal activities such as fabricating and distributing price information, malicious hoarding, driving up prices, colluding, manipulating market prices, monopolization of goods sources and blocking circulation channels.

According to the introduction of the national development and Reform Commission in May 24th, the national price bureau meeting held in Beijing on 22 may put forward a study as soon as possible to formulate and define the standards and measures for cracking down on fabricating and distributing price information, malicious hoarding, driving up prices for profiteering, colluding prices and so on.

We should focus on investigating and dealing with illegal and illegal activities such as fabricating and distributing price information, malicious hoarding, driving up prices, colluding, manipulating market prices, monopolization of goods sources and blocking circulation channels.

The meeting pointed out that since the beginning of this year, China's grain, corn, corn and other grain varieties, garlic, vegetables, mung beans and other agricultural and sideline products and 37 Chinese herbal medicine prices have risen more, not only by the Southwest drought, the Middle East and other regions of the adverse effects of low-temperature weather, but also with a very small number of operators fabricate scattered false information, malicious hoarding, driving up prices are closely related.

The meeting stressed that price authorities at all levels should resolutely prevent and curb speculative speculation of "idle capital".

The meeting called on all localities to seriously study and improve the regulation of grain, pork, sugar and cotton price regulation, and actively take information guidance, support production, production and marketing linkage, storage and huff and puff, organize pportation, promote circulation, and necessary interim price intervention measures to effectively protect supply and stabilize prices; actively apply price adjustment funds to support price monitoring, information dissemination, construction of non-staple food production base and market system, and grant temporary price subsidies to low-income groups in urban and rural areas.

The meeting also urged all localities to publish timely and proactive information about the production, supply, demand and price changes of commodities, clarify false rumors, stop false news dissemination, and regularly publish the progress of price control departments in combating price violations through the media, and openly expose a number of major price violation cases.

{page_break}

A report released yesterday by the national development and Reform Commission said that with the advent of summer vegetable production and supply season, vegetables will be listed in large quantities, and vegetable prices are expected to decline further.

The report shows that since May, with the weather warming, vegetable prices across the country have generally come down.

In May 19th, the average price of 24 vegetable varieties, such as Chinese cabbage, potatoes and green peppers, dropped by 17.88% in the main agricultural products (000061) wholesale market in the country, and the price was decreasing weekly by 24.

In the first three weeks of May, wholesale prices of vegetables decreased by 4.47%, 11.11% and 3.29% respectively over the previous week.

As vegetable prices in the wholesale market continue to fall, retail market prices have gradually dropped.

Monitoring data showed that the average retail prices of 15 main vegetable varieties in 36 large and medium-sized cities in the middle and May were 3.51% and 7.96% lower than that in the previous ten days, respectively.

The price monitoring center of the NDRC analyzed that in April, the price of vegetables increased more widely, mainly due to the abnormal weather changes in China this year. The output was reduced compared with the previous years, and the market supply was relatively tight.

With the arrival of summer vegetable production and supply season, the open field vegetables will be listed in large quantities, and vegetable prices are expected to decline further.

Since the beginning of this year, agricultural products (000061) have suffered great losses due to Southwest drought, snowstorm in the north and heavy rain in the south.

After garlic, mung bean and other crazy rise, in addition to the Shandong market, corn prices all over the country have also seen a substantial increase.

According to the statistics of the national development and Reform Commission, the average purchasing price of three kinds of grain, rice, wheat and corn, increased by 12.6% in the first quarter of this year compared with the same period last year. The grain prices in the domestic market in the two quarter will continue to rise steadily.

Therefore, some experts said that the possibility of further rising grain prices in the future may also be one of the reasons for the continuous rise of the agricultural sector recently.

In this regard, investors are concerned about the impact of rising grain prices on the relevant listed companies.

{page_break}

Risk of shifting of feed listed companies

Experts from the Chinese Academy of Social Sciences predict that China's grain production prices will rise more than 10% in the year to 2010, after which the Chinese Academy of Social Sciences only expected "more than 5%".

The rise in grain prices will drive up prices of other farm products such as pork and indirectly boost the CPI index for the whole year.

ST Condall (000048) Dong Wei Zhu Wen, in an interview with the Securities Daily reporter, said that the rise in grain prices had a great impact on them, especially corn prices.

As a result, costs will rise and feed prices can only rise.

But for the aquaculture industry, this part of the cost can not be digested.

At present, the prices of agricultural products are rising.

The National Bureau of Statistics recently announced the price changes of major agricultural products in the 200 main producing counties in late April, except for the decline of livestock and poultry products prices.

Data show that grain products have risen all over the world, of which corn has risen to 1.54%, while indica rice and japonica rice have increased by more than 1%.

According to the analysis of the industry, the increase in corn prices is mainly due to the reduction of grain storage in local enterprises and farmers, the decline in market traffic, the rise in prices of live pigs and meat and poultry, the resumption of development in aquaculture, and the rising market demand, resulting in a rise in the purchase and sale price of corn market.

Abnormal climate has a great impact on grain prices.

Since the fall of last year, Southwest China, including Guangxi, Chongqing, Sichuan, Guizhou and Yunnan, has experienced a rare drought in history. At present, millions of hectares of crops are dead.

According to joint securities estimates, if the drought area's grain production is reduced by 10%, the national grain production reduction is expected to be around 1.8%.

The cost of feed companies such as ST Condall (000048), new hope (000876) and Tongwei shares (600438) has been increased due to the rise in grain prices. Under the pressure of cost increase, the company has increased the ex factory price of feed.

Yu Qingqing, an analyst at Xiangcai securities, told reporters that feed listed companies had the ability to pfer costs to the downstream. Although the increase in raw materials led to higher costs, the price of their products would also rise, thereby pferring all or part of the cost increase.

Feed industry is originally a low margin industry, which is driven by sales volume.

For now, the industry is more concerned about the benefits of capacity expansion.

"In the upstream, such as the new hope, Tongwei shares and other feed processing companies are in essence benefited."

Yu Qingqing said.

{page_break}

Seed industry benefits most

Some experts have revealed that grain prices have increased, and the upstream industries such as seeds, pesticides and agricultural machinery have benefited most, followed by planting and animal husbandry. The downstream agricultural products processing industry is benefiting from the worst and the risk and earnings of the agricultural products processing industry are uncertain.

Data released by the National Bureau of statistics on 11 may show that consumer prices rose by 2.8% over the same period in April, of which food prices rose by 5.9%, ranking the highest in eight categories of commodity prices. This alone led CPI to rise 1.9 percentage points.

It is understood that grain prices in the proportion of CPI accounted for 3%, the rise in grain prices is considered to be an important promoter of CPI this year.

More importantly, because of the fundamental role of grain prices, the prices of many agricultural products are adjusted according to grain prices. When the price of grain rises, many other agricultural products will go up.

Yu Qingqing told reporters that the price rise of agricultural products is generally more beneficial to the seed industry, because seed industry is a relatively sub industry, and seed companies can actually benefit from seed production and sales.

In addition, the seed demand of seed companies comes from sown area. The rise in grain prices is conducive to long-term stable growth of their sown area, but short-term benefits will also be limited.

Seed Businesses at the upstream of agricultural products benefit from the rising prices of downstream agricultural products, such as Feng Le seed industry (000713), climbing seed industry (002041), Wanxiang de Nong (600371), and Dunhuang seed industry (600354).

Some analysts also told reporters that "inflation plus policy" is an important basis for supporting the valuation premium of agricultural stocks.

He now insists on the idea of "seed leading agriculture" put forward in the strategy of 2010.

At the same time, it is believed that raising the minimum purchase price of cattle rice in 2010 is expected to boost the investment enthusiasm of the relevant sectors of the grain market in the two level market, and seed industries and sub sectors will become the main targets.

The analysts believe that the scale of subsidies for improved varieties has expanded, and the country has first proposed to encourage seed industry integration and promote the industrialization of genetically modified seeds from the policy level.

In view of the favorable policies and the constantly strengthened inflation expectations, the agricultural sector is "buy" rating.

Benefiting from the policy of grain price rise and seed subsidy, the recovery of seed industry performance is obvious. Therefore, the seed industry is the first to be promoted in the agricultural sector.

Seed companies are more optimistic about the advantages of research and development, and the main varieties in the high-speed promotion period of listed companies, it is recommended to pay attention to the seed industry.

It is understood that Shandong's Limited by Share Ltd is a leading agricultural high-tech listed company founded by Li Denghai, a famous maize breeding and cultivation expert. It ranks third in China's top fifty seed industry.

At present, the company's first jade 335 has entered a mature period. In 2008, the first jade 335 contributed 215 million yuan of sales to the sea going seed industry, accounting for 51.6% of its total operating income of 417 million yuan, while in 2009 it contributed 318 million 400 thousand yuan, accounting for 54.99% of all business income.

Shenyin Wanguo analysis report that the company's reasonable stock price is 56.4 yuan, giving it a target price of 55 yuan, and the stock price still has a 32% rise.

{page_break}

Since then, natural disasters in China, including severe drought in five provinces in Southwest China, Yushu earthquake in Qinghai, windstorm, snowstorm and floods in southern China, have been increasing food and food prices.

What will be the impact of wine based listed companies with grain as raw material?

Will the rising price of raw materials be pmitted to the listed companies of liquor industry?

Will the price of alcoholic drinks rise with the rising price of raw materials?

Judging from the performance of the two tier market, yesterday, the wine industry listed companies all over the world, Chongqing beer (600132), old white wine (600559), Jiugui Liquor (000799) and many other stocks outstanding performance, led the market.

According to the analysis of the industry, the increase in grain prices will inevitably increase the cost of listed liquor companies, but for the beer enterprises entering the peak season of sales, the huge increase in sales performance will be able to digest the pressure brought by the rising cost. For liquor making enterprises, the cost of raw materials will continue to the end of the year, and the pressure will also need a process to appear. By the end of the year, a new round of rising prices of medium and high grade liquor may be triggered.

There will be no new round of "price surges" in the short term.

In an interview with the Securities Daily, Zhou Siran, a researcher in the food industry of CIC, pointed out that the price increase of raw materials such as grain will inevitably bring rise to the cost of wine companies, but this will not necessarily cause collective price increases.

For brewery enterprises, Mr. Feng Feng, a partner of fast track marketing center, pointed out to the Securities Daily that the beer is entering the peak selling period, and the domestic beer is basically in the middle and low end of the market. Consumers are more sensitive to the price and the sales volume is more influenced by the price, so the price of beer will not rise.

Therefore, beer listed companies can influence the cost of internal self digestion and raw materials.

Mu Feng believes that for liquor making enterprises, it will not usher in a new round of price rise in the short term. But in the medium to long term, with the arrival of the peak season of consumption at the end of the year, the premium of medium and high grade liquor is expected to increase.

Mu Feng further pointed out that in the short term, the liquor industry will not rise in price surges. First, the peak season for liquor sales has not yet arrived. Two, the price rise of some high-end liquor is still in the process of digestion at the beginning of the year, so that the price is reduced; three, because of the liquor brewing cycle, there is no effect on the white wine currently in sale.

Zhou Siran also believes that there should be no new liquor price increase in the short term.

Zhou Siran pointed out that despite the adjustment of the tax system, the rectification of drunk driving and the increase of grain prices, both the first line and the second line liquor prices have been rising, and the price increase has not affected their consumption. However, after a series of price competition, many manufacturers will have a buffer period. During this period, they should focus on how to reduce production costs by improving production technology, instead of simply raising the price to cope with the rising cost.

The price of premium liquor is facing bottlenecks, and the price of Medium wine increases.

Mu Feng believes that the price of medium and high grade liquor may increase at the end of the year.

Because the increase in grain prices is mainly due to bad weather in the main producing areas of agricultural and sideline products, resulting in insufficient supply and rising prices. In addition, the government has increased the purchase price of grain.

In view of this, before the end of the year, the price rise will not recede. The rising cost of liquor will gradually show up, and with the arrival of the peak consumption season at the end of the year, the price increase is expected to increase.

Although there is a bottleneck in the price rise of premium liquor, there is still room for the price increase of high-end liquor under the constant innovation of concept, quality, service and promotion.

Mu Feng pointed out that the price rise from the beginning of Moutai did not achieve the expected sales effect. It can be seen that the price rise of high-grade liquor has already revealed some problems: first, it deviated from the profit maximization point under the balanced price and the market; two, the form of high-end liquor is single, and the single variety is also a big problem.

Just imagine that the same product will grow up without adding any selling points or reasons, and consumers will be doubtful.

Zhou Siran believes that Moutai did not achieve the desired results at the beginning of this year because of many reasons. It can not be attributed to Moutai's rise in price.

At the same time, from the level of Moutai's price rise, the price of premium liquor is indeed very limited, but it does not mean that it has already faced a bottleneck.

In fact, the price rise of high-end liquor has no effect on ordinary audiences. In the gift market, business meetings and business occasions, they only value brands, but are not so sensitive to prices.

Of course, in the long run, the rising price is not conducive to the healthy development of high-grade liquor.

Zhou Siran pointed out that after a wave of price increases, the price of high-end liquor is limited, but in the high-end liquor prices continue to rise at the same time, the gap between the liquor and the middle gradually widened, for the mid end liquor set aside some room for price increases.

{page_break}

Yanjing Beer (000729): at present, prices will not change in Beijing market.

"Eating garlic is more expensive than eating meat is better than going home to grow garlic" is a popular saying.

When going into the vegetable market, vegetables are often asked for 35 yuan a kilogram, and mung beans soar to 10 yuan per catty.

In the first half of the year, the prices of agricultural and sideline products in China rose steadily. The daily expenses of the people increased exponentially. How did the price increase of agricultural products (000061) affect the relevant listed companies?

Reporters interviewed Southwest Securities (600369) Wei researcher, he thought that agricultural products as the main raw materials of listed companies may be damaged.

For listed companies whose main raw materials are agricultural products, their performance may be negatively affected by rising raw material prices and rising costs, especially for cotton textile listed companies.

For the listed companies whose main products are agricultural products, we should also consider the shift of their rising costs.

On the one hand, the price increase of raw materials will lead to an increase in costs. This is a negative impact; on the other hand, the price of its products may also increase, so that all or part of the cost increase will be pferred.

Is it true that all enterprises that use agricultural products as raw materials are affected?

In the summer, the demand for beer is increasing. The price of beer will fluctuate and become a matter of concern to all. The reporter interviewed Liu Xiangyu, deputy director of Yanjing beer. He said that the price of beer in Beijing market will not change at present.

Beer's main raw material is malting barley. It is a non edible agricultural product belonging to special crops.

At home and abroad, the supply of raw materials from Yanjing beer is mainly imported from abroad, and the price of beer barley in the international market has been very stable. The price fluctuation of domestic agricultural products is basically not affected by Yanjing beer.

Liu Xiangyu said, at present, the price of beer in China is still low. It will be an inevitable trend to return to a reasonable price range. In the long run, the price of beer is still improving step by step.

The rising price of agricultural products has a negative impact on many aspects of the market, but at the same time, the increase in crop demand has also led to the growth of seed demand, making the seed industry a long-term beneficial industry.

Seed is the carrier of agricultural science and technology and the root of crop yield and quality.

The seed is the starting point of the value chain, which has different degrees of influence on many industries such as planting, processing of agricultural products, food processing, and so on.

Speaking from the market capacity, the market scale of domestic commercial seeds is about 20 billion yuan to 30 billion yuan, and the market capacity is large enough. At present, the commodity rate and grain production ratio of domestic seeds are relatively low, about 10% to 20% of developed countries.

Seed as the starting point of the entire agricultural industry chain, is there any enterprise to win at the starting point?

Dnnong (002385) is a business and core product based on seed and feed products. The sales revenue of the two products accounts for about 90% of the company's revenue.

Reporters interviewed Chen Zhongheng, a company secretaries. He said that the rise of agricultural products is good for the company.

As a result of the huge volume of agricultural products and the increase of one or two cents, the seed price increase of the upper reaches may reach more than ten yuan.

If agricultural products remain low for a long time, the price of seeds will also be limited.

Chen believes that this is a process of mutual influence.

As another major feed product of DNB, Chen Zhongheng said that the impact is also very small, to a certain extent, is also conducive to the promotion of the company.

He explained from three aspects: first, the capital and strength of Da Bei Nong were very strong in the same industry, and the procurement of raw materials was very well after many years of market operation. A professional research and procurement team judged the market and constantly gained profits from the ups and downs of the market, which made the source of production very well cost control.

Secondly, he believes that the price fluctuations of agricultural products will have a great impact on a large number of small and medium-sized enterprises, which will restrict the original market. This will give the North farmers with cost advantages a good chance to seize more market share and expand further from the market.

Finally, he introduced dnnong's feed as a main product of premix and high-end feed.

Premix is a kind of intermediate compound feed made from one or more trace components, including various trace minerals, vitamins, synthetic amino acids, certain drugs and other diluents or carriers.

Therefore, the price of corn seeds at present has little impact on the company, and has a great impact on the full price market.

In the 09 year, the total capacity of the feed was 1 million 280 thousand tons, and the sales volume was 950 thousand tons. Revenue and profit accounted for 86% and 75% of the company's total revenue and profits respectively.

The main highlight of feed business is pig premix with high gross profit margin (gross margin of around 38%), and sales volume of 190 thousand tons in 09 years, the first in four years, contributing 40% of the company's profits.

When the reporter asked that as the upstream industry, the company will raise the price of seed and feed at present, Chen Zhongheng said that dnnp would not take the initiative to raise the price. Unless the whole industry had the trend of price increase, the company would also consider the price adjustment carefully combined with the profit distribution.

He said that the company would first consider the interests of the farmers, and the industries that are related to people's livelihood should not take the opportunity to raise prices because of the slight rise in market prices. As a company with a sense of social responsibility, the interests should not be placed first only.