Food partner network news on March 3, according to Korean media reports, South Korea's National Assembly passed the "food and beverage industry revitalization law" part of the draft amendments.

 

The main content of the revision is that the South Korean government will provide financial support to encourage restaurants to sell coarse grains and use superior ingredients.

 

"By encouraging the sale of coarse grains, we hope to strengthen links between the catering industry, agriculture and fisheries, and promote rice consumption and the use of domestic agricultural products," the lawmakers said.

 

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Under the influence of the epidemic in Hubei Province, the logistics and transportation of bulk feed commodities such as corn and soybean meal are not smooth and the purchase price rises sharply, leading to the increase of production cost of breeding, which has a huge impact on the breeding industry with meagre profit. At the same time, breeding and production enterprises are also faced with the risk of inventory freshness preservation and rapid depreciation. At present, the price of inventory products has nearly fallen through the cost line, and the production and operation of enterprises are facing severe challenges. Zheshang futures and zhejiang industrial use of "in case of rising does not rise, in case of falling is falling" risk management program to help breeding enterprises avoid feed price risk.

 

The two companies in Hubei are Jingzhou Sice Agricultural Science and Technology Co., Ltd. and Yichang Tianyou Huamu Science and Technology Co., Ltd., which raise 850,000 chickens.

 

Zhejiang Industrial Co., Ltd. and Haoyumu Rice Co., Ltd. immediately organized a feed supply plan, and with the help of Haoyumu Rice Co., Ltd. in the area of Jingzhou, Hubei, warehousing inventory and logistics advantages, to solve the problem of raw material supply for breeding enterprises. On this basis, zheqi industry provides free feed purchase cost risk management for breeding terminal enterprises, which can effectively reduce the market risk faced by enterprises.

 

Specifically, at the derivative end, the call option of soybean meal was bought to avoid the risk of feed price rise. Considering that the two breeding enterprises lacked the corresponding derivative trading team and trading experience, the derivative contract was held by Haoyumi Rice. At the spot contract end, when Haoyaoyu Rice supplies the breeding terminal, the contract stipulates the purchase ceiling price and quantity. When the contract expires, if the feed futures price is higher than the ceiling price, the breeding enterprise will purchase the feed at the ceiling price. If the price is lower than the ceiling price, the breeding enterprise can purchase the feed at a lower price.

 

This risk management plan involves 500 tons of soybean meal for chicken feed, which can meet the feed supply of millions of existing farms in the near future, and provide a practical guarantee for the supply of meat and eggs in Hubei Province in the near future and the orderly resumption of work in Hubei Province in the later stage.