Lean Hogs/Soybean/S.Meal/S.Oil ALL UP 1%
These YSYB producer commodities were DOUBLE the price in 2011-2012, & Hogs were DOUBLE the price in 2014-2015, which is how all the complex variables play out, but by the decade do always prove huge gains.
HYBRID ORGANIC NO HORMONE/ANTIBIOTIC PREMIUM BLACK HOGS OFFER PREMIUM PRICING; same as NON-GMO ORGANIC ALL YSYB PRODUCE, so YSYB gets a much higher price for their products.
CEO Shulin Liu is as anxious as all of us we're sure, as he only gets about $80K/yearly. Those 18 million shares once valued at $5.50 in 2007 & 2008; now worth four times that capital investment must be front & center on his mind as he watches commodities pricing fluctuate. Does anyone else actually follow producer prices here? Resource wars change even faster than human migration due to drought, fires, wars, geopolitics.
Future Climate Changes once thought of as distant future concerns are here & now. Hurricane SANVU is Northbound off Japan at 127 mph, Hurricane LIDIA is Northbound off the Pacific Baja at 75 mph soon fizzling, but HURRICANE IRMA is tracking just like HURRICANE HARVEY, & IRMA is forecast to clock out at over 161 mph by the 5th. Whether hurricanes, geopolitics, fire, droughts, or wars; YSYB's pure & wholesome NON-GMO ORGANIC NO HORMONE products will outperform. YSYB producer commodities may have all been DOUBLE current prices, but never forget the new awareness of banned toxic chemicals that the world now knows about!
95% of China hogs ARE NOT ("GREEN"); meaning hormone-free, organic, & fed only NON-GMO FEED!!!
Most are not hybrid black or premium hogs like the select YSYB species produce either for YSYB higher prices.
USA grains are mostly banned due to gmo pesticides, & USA hogs are banned due to hormones; in regard to ( HUMAN CONSUMPTION ). All other countries have banned these toxic carcinogens, except for the USA.
From the 2012 10K below, it's easy to see that (121,257 TONS) OF SOYBEAN MEAL PAY THE BILLS MOST.
10K:
"Sales of Products by Type and Locations
The following table shows the breakdown of sales volume of main products by customer type for the year 2012.
Salad Oil Grade IV
Soybean Oil Soybean Meal Low Temperature
Soybean Meal Squeezed Oil Concentrated
Soy Protein
Type Volume
(Tons) % Volume
(Tons) % Volume
(Tons) % Volume
(Tons) % Volume
(Tons) % Volume
(Tons) %
Distributor 4,795 100 24,400 99 117,619 97 15,690 98 989 100 2,462 100
Animal Feed Manufacturer 0 0 246 1 3,638 3 320 2 - - -
Total 4,795 100 24,646 100 121,257 100 16,010 100 989 100 2,462 100
"Our sales are primarily made to customers within the PRC, although some of our products may be exported by distributors to countries such as Japan, Korea, and Russia."
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Generally, we do not compete with companies that are engaged primarily in the manufacturing of genetically modified soybean products, especially international agriculture conglomerates. Currently, most major producers of genetically modified soybean products are state-owned enterprises and joint ventures of global agriculture companies. Their operations are mostly located in the coastal cities in Southern PRC, which enables them to conveniently import genetically modified soybean from the U.S., Brazil, Argentina and other countries in bulk volume at reasonable prices. The market for their products is also mainly in the southern parts of PRC. Meanwhile our supply sources, production facilities and customers are mostly in Northern PRC, where there is an abundant supply of non-genetically modified soybean. Generally speaking, there is a geographical division between the market for genetically modified soybean products and that for non-genetically modified soybean products. As a result, we generally do not have direct competition with our genetically modified counterparts.
Page 14, 10K, 2012 quoted
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KEY TAKEAWAY in understanding of YSYB's (MOST MAJOR PRODUCT) Soybean Meal pricing can be found for those of you who actually read the 10K closely with deeper comprehension. READING MATTERS.
For all of you who repeatedly ask WHEN, then here's your answer. Understanding producer prices is key.
YSYB will be given the 5,000 & 10,000 hogs production government BONUSES for being so efficient environmentally & helping to SMOOTH the price hysteria that the new China PORK INDEX purposely is doing.
Most pork producers are very small in China; spike the market for high prices unexpectedly & the government wants that stopped so SMOOTH ratios & prices & more wholesome food security & control will prevail. Thus YSYB gets preferential treatment bonuses, as YSYB farms are very up to date.
10K quoted:
"Note: the amounts are converted from RMB value using 1USD = 6.3086RMB of the year end rate of 2012, and 1USD=6.3585RMB of year end of 2011.
The price of soybean meal was $433 per ton at the end of 2012, a decrease of $44 per ton from $477 for the year ended December 31 2011. For the past few years, the price of soybean meal has been in the higher range, up to $680 per ton. The prices of our products are determined by taking into account the costs of labor as well as the seasonality of demand in the soybean market. Traditionally, the prices of our raw materials are lowest during the soybean harvest period between October and December, as the supply is most abundant then. Our prices then usually peak from January to February due to the large demand during the Chinese New Year and Spring Festival holidays.
2012 -- 10K page 15 quoted.
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Currently, the Chinese are consuming more than 6,000 metric tons of pork every hour & are projected to eat as much as 53.5 million metric tons of pork in 2016. THAT'S 100+ LBS PER PERSON PER YEAR IN CHINA, COMPARED TO 80-88 LBS IN USA, & GROWING with the Middle Class there rapidly!!! And you thought the USA enjoyed meat more than Asians, huh? They also enjoy all the by-products that add over $10 a hog to the price as well. This same perspective is snowballing prices for NON-GMO / ORGANIC in China, as FENG SHUI superstition only magnifies their suspicions even more. China hogs had an INCREDIBLE 2014-2015 year when it was a red hot doubling of prices demand; & that will happen again soon; same as soybeans & rice commodities. Japan loves YSYB NON-GMO ORGANIC RICE so much, they pre-fixed sales before the machines were even ready as they process hotly right now.
So many variations of complexities are difficult to convey, but the bottom line is commodity PRICE.
With Soybean Meal at $300. Dollars today, that historical $477 to $680 will happen sooner than you think, but doesn't necessarily depend on that, of course. So don't look to that as being the sole gauge marker for a pop.
YSYB is a BRILLIANT STAR about to supernova in our favor. COUNT ON IT!
