Although the expectations of wheat were not too high before, what the market did not expect was that as soon as Hubei wheat was sporadically listed, the wheat price was killed.
Last year, some areas of wheat in Hubei were able to get 1.3 yuan per catty, but this year, even 1.2 yuan could not be put into the eyes of the law, and it fell directly to 1.16 yuan and 1.18 yuan.
You must know that the minimum purchase price of wheat is only 1.18 yuan per catty, which is obviously a high jump in the toilet - excessive.
Although we have analyzed it before, the current only sporadic wheat on the market, no large-scale harvest, coupled with uneven quality, does not represent the mainstream market.
But emotionally, it doesn't matter if you have the quantity or not, the quality is uneven, and many companies follow the trend to reduce prices, and the wheat is pushed by everyone.
At present, the purchase price of wheat has fallen to 1.24-1.28 yuan per catty, but the company is still reducing the price.
And not only Xinmai, but even Chen Mai was also dragged down, originally Chen Mai was still waiting to sit on the ground and raise the price, but it was also dragged down.
For a time, the wheat fell to a mess.
But don't worry, the wheat harvest has just begun.
Some friends must say, you must talk about the production of wheat again, before the wheat lands, everything is too early.
That's just one thing, but this time we're not talking about it, we're talking about another thing.
What's the matter?
Changes in demand for wheat.
Don't look at the price pressure of enterprises now, but in fact, it is also a helpless move.
In the past two years, the competitive pressure between flour enterprises has also been particularly great, and in the popular words now, it is also "rolling" very much.
Why "volume"?
On the one hand, the threshold of the flour processing industry is not high, and the price of wheat has risen sharply in the first two years, so the large and small flour enterprises have also increased a lot.
But the market demand is so big, so they all cut and cut the cake.
This is also why the price of wheat has fallen vigorously, but the price of flour has not fallen much, because everyone wants to keep profits.
To maintain profits, we can only strive to reduce costs, so the result is that enterprises are trying to suppress wheat prices.
But on the other hand, this is not the fundamental way out of competition, because the greater pressure does not come from costs, but from the transformation of market demand.
In fact, on the one hand, the weak recovery is slow, but on the other hand, the market demand for consumption has changed, and the demand for high-quality flour is getting weaker and weaker.
So it's very common for the market to force supply-side reforms.
So, how to change?
Then you can't just rely on hard work to reduce costs, you have to find ways to improve quality.
There are two ways to improve quality: one is to rely on technology, and the other is to improve the quality of wheat and increase the proportion of dominant wheat used.
Speaking of which, does that sound familiar?
That's right, there are already companies doing this.
Not long ago, a large enterprise in Hebei issued a notice that in order to ensure product quality, Hubei wheat will not be purchased temporarily, and the proportion of high-quality wheat will be increased.
Look, they're already on the road. Do other companies still want to compete by desperately lowering wheat prices?
Obviously, this road will not work, and we can only return to improving the quality of flour.
So, the problem is, to improve the quality, to increase the proportion of high-quality flour, in other words, the demand for high-quality flour will increase.
And high-quality flour is relatively scarce, not to mention the price reduction, the price increase may not be able to grab it in the future.
Therefore, this is the most headache for enterprises.
And this will happen soon, because regardless of whether the new wheat is abundant or not, it cannot be used in large quantities due to the late ripening period, and in order to ensure the quality of flour, it is necessary to control the proportion of use.
Therefore, it is only a matter of time before the demand for Chen Mai will inevitably grow.
In addition, the current market's attention is focused on the production of new wheat, or more on the increase or decrease of new wheat, and the future market demand for high-quality wheat will be more and more, so more attention should be paid to the quality of new wheat.
And this kind of change is not something that enterprises are willing to do, because the market is pressing, and the competition in the wheat market is shifting from quantity competition to quality competition.
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