December 18, 2019

Large swine producers in China profit from African swine fever

Companies such as Muyuan Foodstuff have reported a 260% profit increase in the third quarter of the same period in 2018, reported South China Morning Post.

According to data from China's Ministry of Commerce, wholesale pork prices in China have more than doubled in 2019 as supplies have dwindled due to the African swine fever (ASF) outbreak. This resulted in the country's highest yearly consumer inflation rate in seven years.

The higher pork prices mean Muyuan's profits rose 260% in the third quarter from the same period in 2018.

Fitch Ratings said large pork producers have gained market share, with smaller swine companies suffering heavy losses. These smaller companies are forced to close business as they do not have the funds to recover their swine herds.

Other large companies that have benefitted from ASF include the world's biggest pork producer and Hong Kong listed WH Group, as well as swine breeder and livestock feed maker New Hope Group.

-      South China Morning Post