August 23, 2019
China feed producer Dabeinong H1 net profit dives 67.67%
Chinese feed producer Beijing Dabeinong Technology Group Co Ltd (002385.SZ) said on Wednesday its first-half net profit plunged 67.67% as African swine fever (ASF) cut feed demand and hit earnings from its swine farms, Reuters reported.
The firm reported net income RMB33.6 million (US$4.76 million) compared with profits of RMB104 million a year ago. Revenue was RMB8.1 billion, down 10.26%.
The company is one of China's top feed producers with output of 4.6 million tonnes last year, mostly targeted at pigs.
Dabeinong's swine farming operations were also affected. The company did not provide detail. It moved into swine production in 2016 with a goal of producing 10 million head by 2021. Last year it produced one million from its wholly-owned farms.
Here's a quick outline of how other listed companies have recently adjusted to the impact of ASF on their operations:
Also in China, Wens Foodstuff Group Co Ltd said on Tuesday its first-half net profit jumped 50.8% as rising poultry demand more than offset a loss in its swine business due to ASF. Wens said its swine business recorded a loss despite sales volumes being up 13.7% on a year ago. The company has raised its spending on biosecurity measures to protect against ASF (/contents/08-21-2019/17ad3621-b50e-4c60-8985-5f01a334d359-a181.html).
Japfa warned in its outlook statement early August that ASF had hurt its performance in Vietnam, as biosecurity measures have raised the cost of production while sales volume of feed is expected to fall on the pre-emptive culling of livestock (/contents/08-02-2019/cccf95f1-583e-499a-8098-8bf5e2cbcfa2-a181.html).
Pilmico said earlier this month that it was switching "a lot of (its) hog lines to duck lines and chicken lines" to sustain growth (/contents/08-19-2019/cb9b50cf-6811-40f6-b4c5-216709cbf645-a181.html).