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The pig/hog slaughterhouse directly purchases live pigs from large pig farms or middlemen, and then slaughter in its abattoir slaughter line equipment.(click here to learn what the main pig slaughter equipment for pig/hog abattoir slaughter line)

The production cost of pig slaughterhouse includes fixed costs and variable costs. The former includes plant and slaughtering equipment investment, and the latter includes live hogs costs, labor, water and electricity, inspection and quarantine fees, etc.

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Established in 1984, we are a leading professional manufacturer and turnkey solutions suppliers of abattoir equipment, slaughtering equipment, slaughter machine tool, slaughter line, slaughterhouse equipment, meat processing machine for livestock/cattle/cow/horse/camel, sheep/goat, pig/hog and poultry/chicken/broiler/bird/rabbit.

According to the investment data of major meat companies or plants, the cost of slaughtering each pig in a large slaughterhouse or abattoir is about 6 USD (it depends on the actual situation in different countries and areas), of which energy expenditure accounts for the highest proportion, natural gas and water and electricity expenditures account for 65% of the cost, fixed asset amortization accounts for 20%, and inspection and quarantine expenses It accounts for about 10%, and the final labor expenditure accounts for about 5%.

Regardless of the weight of the pig, the cost of buying pigs is mostly calculated based on the number of hogs. Therefore, in the procurement process, meat companies/plants tend to input-output ratios of the highest single pig weight.

The company who slaughter only just needs less cost.

Generally, a pig intermediary is both a seller of live pigs and a buyer of pork after slaughter. Even some small pig/hog abattoirs/slaughterhouses only charge slaughter fees, and do not care about buying live pigs and selling pork. Therefore, the related expenses of slaughter enterprises are less than 5% of their overall expenses.

The income of abattoir/slaughterhouse is affected by the number of slaughtered pigs, the rate of pig meat production and the price of pork.

On the one hand, the number of slaughtered pigs is affected by the company’s production capacity. Generally, it is a good situation that the capacity utilization rate of a slaughter company exceeds 60%, and it is close to full capacity when it reaches 80%.

On the other hand, due to the influence of the supply market, when the supply is insufficient, the slaughter volume of the enterprise will be affected to a certain extent. Compared with large-scale slaughter companies, the meat yield of live pigs is relatively stable. In the process of purchasing live pigs, this issue has been considered, and different purchase prices have been given to different live pigs.

The price of pork is affected by the purchase price of pigs and the relationship between supply and demand in the pork market.

In addition, the price of pork in different parts is also different, and different product structures will also bring different income levels. The more carefully the pork is divided, the higher the income. The price of cold meat is usually higher than that of hot meat.

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Established in 1984, we are a leading professional manufacturer and turnkey solutions suppliers of abattoir equipment, slaughtering equipment, slaughter machine tool, slaughter line, slaughterhouse equipment, meat processing machine for livestock/cattle/cow/horse/camel, sheep/goat, pig/hog and poultry/chicken/broiler/bird/rabbit.

In short, the income of a slaughter company is affected by its production capacity, the structure of slaughtered products and the price of pork. The price of pork is the most critical factor, followed by the product structure. The cost of a company is mainly affected by the purchase price of pigs, energy prices, investment in fixed assets, and inspections. Factors such as quarantine costs are affected, among which purchase costs and energy prices are the most influential. From the perspective of industrial chain profits, energy prices and pork prices are important factors that need to be considered in this link.

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