August 17, 2011

China-based breeder and commercial hog producer Tianli Agritech Inc clocked a strong growth of 41% in second-quarter revenue to US$7.7 million from a year earlier.

The company sold a total of 27,589 hogs compared with 25,815 hogs sold in the comparable 2010 period. Sales of breeder hogs increased 24% to US$2.8 million, representing 37% of the total revenue. The average price per hog decreased slightly due to a greater mix of lower margin crossbred breeders sold during the second quarter of 2011.

Commercial hog sales increased 53% to US$4.8 million. The number of commercial hogs was relatively flat at 18,577 while the average price per hog increased 55% on-year to US$260 due to high market demand.

Gross profit in the second quarter of 2011 was US$3.2 million, a 35% increase over the same period last year. Second-quarter net income was approximately US$2.5 million, up 17% from US$2.1 million last year.

Tianli's Chairwoman and CEO, Hanying Li, stated, "We benefited from steady increases in commercial hog pricing during the quarter as shortages continue to plague many markets, while demand for breeder hogs accelerated as customers are looking to expand their own commercial hog-raising capacity.

"Our diversified model also helps to diminish revenue and margin fluctuations, which can occur on a quarter by quarter basis. We expect further sales growth for both breeders and commercial hogs as our new farms go into operation."

Besides growing high quality hogs for sale for breeding and meat purposes, Tianli Agritech conducts genetic, breeding and nutrition research to improve its production capabilities.