February 23, 2009
China experiences heavy losses in beef cattle slaughters in 2008
Beef cattle slaughtering and processing companies in China suffered large losses, despite a more than 50-percent growth in beef prices in 2008, according to a survey report by the China Animal Agriculture Association (CAAA).
The lack of beef cattle supplies and operating rate are the main reasons that led to the losses.
Beef prices continued rising at the beginning of last year and the prices ever reached RMB29.50/kg, a year-on-year increase of about 50 percent.
A preliminary estimation shows that annual profits from a cow that can give birth are RMB1,800 to RMB2,000, while the annual profits for a migrant worker are more than RMB10,000. Thus, farmers are less keen to raise beef cattle.
US$1 = RMB6.836 (Feb 23)
