March 18, 2019
Muyuan to boost production as China continues to deal with swine fever
Muyuan Foodstuff intends to boost its production in 2019, even as China's current predicament with the outbreaks of African swine fever shows no sign of abating, said the chairman of the country's second-biggest pork producer.
According to Muyuan chairman, Qin Yinglin, the company will rely on reduced supply and rising prices to bolster its profits.
"Swine fever brings both benefit and harm… We need to ride this violent [storm] out and turn it into a superb opportunity for our development," he said on the sidelines of the National People's Congress in Beijing, China, this month.
Qin, however, did not elaborate further on Muyuan's expansion plan. Nevertheless, the company has implemented numerous measures to deal with the African swine fever disease, he added.
China's live hog supply dropped 1.2% to 694 million units last year from the year before, of which Muyuan supplied 11 million pigs in 2018. Meanwhile, live hog prices have increased to their highest level in 14 years to CNY15.09 (US$2.25) per kilogramme, Reuters reported last week.
Analysts are confident that major companies like Muyan could benefit significantly from the uptrend as they are better equipped to tackle swine fever. Investor's confidence helped push Muyuan's shares up 84% since the start of the year.
- South China Morning Post