August 12, 2020

 

Lower US pork exports to China in H2: WH Group

 


China's WH Group expects pork exports from the United States to China to dip in the second half, chief financial officer Guo Lijun said on Tuesday, as the COVID-19 pandemic cut volumes being handled at US processing plants and lifted prices, Reuters reported.


In comparison, China's pork imports surged in the first half, with arrivals from the USparticularly high.


Into the second half, high numbers of COVID-19 cases in US slaughter plants significantly impacted processing capacities and raised costs, including at WH Group-owned Smithfield Foods.


Five of the company's plants continue to run below normal capacity.


However, higher prices for packaged meats in China and Europe more than offset weak prices and sales volumes in the US, and the company reported a 20.9% increase in first-half profits.


Pork prices in China, on average 137% higher than the same period a year ago, underpinned higher selling prices for packaged meats in the company's domestic market, boosting revenues even as sales volumes fell1.5%.