The market research and analysis report on the slaughtering equipment industry shows that slaughtering products are mainly divided into hot fresh meat, cold fresh meat, and frozen meat. Leading enterprises have significant scale advantages, allowing them to better control costs. At the same time, compared to small and medium-sized enterprises, leading companies like Shuanghui possess advanced slaughtering technology and equipment, producing higher quality products that adapt to industry development trends and promote increased concentration. Firstly, the slaughtering industry has a typical cost leadership strategy attribute, meaning that if a company has a greater scale advantage combined with refined management to achieve cost advantages, it is easier to gain an edge. Leading companies like Shuanghui and Yurun have obvious scale advantages, effectively controlling costs and expenses. Large enterprises can achieve an average gross profit margin of over 10%, while small and medium-sized enterprises are around 5%.
In addition, leading enterprises also possess advanced slaughtering technology and equipment. Currently, industry standards for technical facilities, hygiene, and epidemic prevention constitute a technical barrier for small and medium-sized enterprises entering the slaughtering industry. For example, in the case of cold fresh meat, Shuanghui adopts internationally standard slaughtering processes and a complete inspection system, utilizing world-leading cold cutting processing technology, undergoing 18 inspections, with rapid cooling before carcass processing followed by slow cooling, allowing the meat to undergo a natural maturation process and be finely cut in a low-temperature environment, inhibiting the growth and reproduction of microorganisms, thus extending the shelf life of cold fresh meat and ensuring product quality is superior to that of most peers in the industry. In contrast, most small and medium-sized slaughtering enterprises use simple traditional slaughtering processes, resulting in inferior product quality. Excellent cutting technology will meet the market's demand for all pork categories and can lead to an increase in gross profit margins.