August 23, 2023

 

How Chinese pig producers fared in 2022?

 

An eFeedLink Hot Topic
 
 

 

In 2022, Chinese pig prices were mostly below production costs from January to June while the industry was hit by multiple losses.

 

Pig prices then recovered since late June and reached their peak in October, hence helping pig producers to make profits in the second half of the year.

 

However, as production patterns differed among different companies, some companies managed to offset their losses in Q1 with profits made in Q2, thereby achieving full-year profits. Others failed to break even.

 

By observing the performance of listed Chinese pig-producing companies in 2022, the divergence in performances can be seen — with Muyuan making a huge profit and Zhengbang suffering a massive loss, for example.

 

As the first listed, Chinese pig company with a revenue of over ¥100 billion, Muyuan achieved a total operating income of ¥119.744 billion in 2022. Last year, it sold a total of 61.201 million pigs as it remains a leader in pig releases in China. Its net profit totaled ¥13.266 billion, a year-on-year increase of more than 92%.

 

As for Zhengbang Technology, it suffered a ¥13.387 billion loss in 2022 (following a ¥18.819 billion loss in 2021). The company did not disclose its pig slaughter data in its annual report but, according to its monthly pig sales briefing, the number of slaughtered pigs last year was 8.45 million, a 43.41% drop from 2021. In 2021, the sales volume of Zhengbang's live pigs was as high as 14.9267 million heads (56.14% more than in 2020).

 

In 2019 and 2020, Zhengbang saw profits of ¥1.6 billion and ¥5.7 billion, respectively. Driven by a lucrative profit, Zhengbang expanded aggressively in 2020. This set the stage for a sharp deficit in 2022 as pig prices tumbled.

 

In 2022, Wen's Group sold a total of 17.91 million pigs, ranking second among Chinese pig producers. New Hope Liuhe sold a total of 14.61 million pigs, ranking third.

 

Other top, listed companies involved in pig farming include Haid Group, Tangrenshen, Tiankang Biology, Hunan New Wellful, Juxing Agriculture and Animal Husbandry, Jinxinnong, Shennong Group and Dongrui Technology. Among them, Haid Group, Tangrenshen, Tiankang Biology and New Ng Fung rank among the top 20 pig producers.

 

Overall, the top 20 pig farming giants in China produced 170 million pigs last year, an increase of 32.83 million pigs (or 24%) compared to 2021.

 

- David Lin, eFeedLink