In this file:
· China's top pig farmers see sharp fall in profits amid disease epidemic
… Muyuan Foods Co. Ltd cut its 2018 net profit forecast… at least 20 percent…
… Wens Foodstuff Group Co Ltd also warned of 2018 net profit… down about 40 percent…
· African swine fever hits huge, foreign-invested Chinese farm
… Neither Heilongjiang Asia-Europe Animal Husbandry nor its majority owner, state-owned Zhejiang Rural Development Group Co. Ltd., responded to calls for comment… IFU, which provides risk capital and advice for investment in developing countries, invested 28.4 million DKK (US$4.32 million) in the farm in 2017…
China's top pig farmers see sharp fall in profits amid disease epidemic
Reporting by Hallie Gu and Dominique Patton; Editing by Mark Potter, Reuters
January 7, 2019
BEIJING (Reuters) - China’s major pig farmers sharply cut 2018 profit estimates on Monday, after fast-spreading African swine fever hit prices and demand for pork in the world’s largest hog producer.
Muyuan Foods Co. Ltd cut its 2018 net profit forecast to between 500 million yuan ($73 million) and 550 million yuan, down at least 20 percent from an earlier estimate in October, showed a filing to the Shenzhen Stock Exchange.
The revised figures are nearly 80 percent down from the 2.4 billion yuan in profit reported for 2017.
Wens Foodstuff Group Co Ltd also warned of 2018 net profit between 3.9 billion and 4.0 billion yuan, down about 40 percent from 6.75 billion yuan the year before.
The warnings come after China confirmed around 100 outbreaks of African swine fever since August last year across 23 provinces. There is neither a cure nor vaccine for the disease, which is deadly to pigs but does not harm people.
Muyuan said it was cutting its forecast following lower than expected live hog prices in the fourth quarter. Most of the firm’s pig production is in northern China, the filing said, where prices have been hit hard by measures aimed at controlling the spread of the disease.
Wens said African swine fever weighed on prices in the second half of 2018, following low prices in the first half.
Still, the company, which also produces poultry, benefited from a strong increase in chicken prices and from a 17.1 percent rise in the number of pigs it sold in 2018.
African swine fever has driven up chicken prices, as shoppers turn to the country’s second most popular meat in the face of short supplies of pork in some places and on concerns of food safety.
Producers of white-feathered broiler chickens are also dealing with tight supply after China banned imports...
African swine fever hits huge, foreign-invested Chinese farm
Jan 4, 2019
China reported an outbreak of deadly African swine fever on a huge pig farm part-owned by a Danish investment fund, showing the spread of the virus to modern industrial farms expected to have the best levels of disease prevention, Reuters reports.
The outbreak occurred on a farm in Suihua city with 73,000 pigs in northeastern Heilongjiang province, owned by the Heilongjiang Asia-Europe Animal Husbandry Co. Ltd., a company established in 2016.
The farm’s herd included 15,000 breeding pigs, according to its website, and it was aiming to produce 385,000 pigs for slaughter a year.
Some 4,686 pigs had been infected and 3,766 animals died, the Ministry of Agriculture and Rural Affairs said late on Wednesday. All animals on infected farms must be culled under current rules.
The farm is the largest yet to be hit by the disease, which has infected almost 100 farms across China since August 2018, spreading faster than in any other country to date.
More than 200,000 pigs on infected farms have been culled, according to a Reuters tally of official figures, while hundreds of thousands more in the vicinity have also been put down.
China has the world’s largest hog herd and the rapid spread of African swine fever has roiled the country’s trade in pork, the nation’s most popular meat, disrupting supplies and pushing up prices in some areas.
Neither Heilongjiang Asia-Europe Animal Husbandry nor its majority owner, state-owned Zhejiang Rural Development Group Co. Ltd., responded to calls for comment.
Steffen Schiottz-Christensen, vice president for North Asia at Denmark state fund IFU, confirmed the outbreak but declined to comment further as he had yet to be fully briefed.
IFU, which provides risk capital and advice for investment in developing countries, invested 28.4 million DKK (US$4.32 million) in the farm in 2017, according to its website, although its shareholding has since been diluted, Schiottz-Christensen said...