In recent years, leading enterprises have gradually been making effective capacity layouts. Currently, the slaughtering industry is still in the stage of land grabbing. Due to the limitations of pig collection and sales radius, a reasonable capacity layout needs to consider both production and sales locations. Generally speaking, the pig collection radius of slaughterhouses is about 100-300 kilometers, while the sales radius is within 300-500 kilometers. Leading companies are actively seeking their first-mover advantages in balancing production and sales or in major pig production areas, and it is expected that they will gain a significant share increase in the future. Among them, Shuanghui and Yurun stand out in terms of the speed of national capacity expansion. Their slaughtering capacity layout is mainly divided into two categories: one is coastal provinces with strong pork consumption and supply capabilities, such as Shandong, Hebei, and Guangdong; the other is inland provinces with high pig output, such as Sichuan, Henan, and Hunan. Although Zhongpin and Delisi are seeking national expansion, currently, both companies still belong to regional strong brands. From Zhongpin's capacity data in 2010, 70% of its capacity is still concentrated in Henan, while Delisi's slaughtering capacity is mainly concentrated in Shandong, Jilin, and Xi'an. Small enterprises are scattered within their respective regions, with a relatively smaller range, and the gap will widen.
In the past, local protection was also an important factor hindering the integration of the slaughtering industry. However, seeing that the central government is breaking local protection through administrative means has accelerated industry integration. The "National Pig Slaughtering Industry Development Plan Outline (2010-2015)" proposed that over the next 10-15 years, backward capacity will be significantly eliminated, the number of designated slaughterhouses will be strictly controlled, and the number of large designated slaughterhouses with a capacity of over 1 million heads will be increased.
In addition, leading enterprises have their own advantageous channels in terminal sales and are continuously expanding based on this. The sales channels for fresh meat mainly include wholesale, retail, and distribution, with customer terminals mainly including catering and processing plants, supermarkets, specialty stores, agricultural trade wholesale, and supermarkets. Shuanghui's cold fresh meat channels are mainly based on wholesale and specialty stores, continuously enhancing the layout and management capabilities of its distributor network; Yurun mainly focuses on supermarkets, holding a significant share in direct sales channels; Jinluo targets rural areas as its market and continuously expands distribution. In contrast, small and medium-sized slaughter enterprises mainly rely on agricultural trade white strip wholesale for sales, with relatively single channels that are difficult to expand. Under the future pattern where supermarkets occupy the main channels, they are even less competitive. At the same time, in recent years, many small enterprises have been cooperating with Shuanghui, Zhongpin, and others to integrate resources and brands.