Goldman Sachs challenges the bottom line of agricultural security

A string of acquisitions highlights Goldman Sachs' strategic ambition

A series of acquisitions displays strategic ambition while local enterprises remain half asleep.

Goldman Sachs challenges the bottom line of agricultural security.

The extremely low industry concentration, weaker risk resistance capability, and immense market space are the main characteristics of China's breeding, slaughtering, and meat product industries. Before the peak of industrial integration arrives, the investment banking giant - Goldman Sachs - has already taken action ahead of others.

The massive industry scale exceeding 300 billion yuan and the consumption attributes of necessities make it possible for behemoth companies to emerge in the meat products industry. Industry insiders indicate that the rise in meat prices also provides an excellent external pressure and opportunity for industry reshuffling. Goldman Sachs' rapid expansion in hog farming undoubtedly signals the charge for industry consolidation. Although many people argue that Goldman Sachs' acquisition of domestic pig farms does not equate to controlling pork pricing rights, its monopolistic momentum still puts pressure on the industry. If this trend continues, and following the precedent set by soybeans, the control of domestic agricultural pricing could fall into foreign hands, undoubtedly threatening the baseline security of China’s agriculture.