China's Top Pig Breeder Warns 2017 Profits To Fall More Than 40%

Lower prices and disease challenges will pressure China's top pig breeder.

* Guangdong Wen’s Foodstuff says 2017 net profits will fall by between 40.6 percent and 44.02 percent from the previous year to between 6.6 billion yuan ($1.02 billion)and 7 billion yuan

* Profit decline is due to a 30 percent drop in poultry selling prices during the year following the outbreak of H7N9 bird flu

* An 18.6 percent drop in selling prices for pigs also contributed to the smaller profits, even as total sales and average weights increased

* About a quarter of Wen’s income comes from poultry meat, with the rest from pork

* The company said last year it was switching to new broiler breeds and expanding sales of chilled poultry meat to counter slowing demand from live chickens

* ($1 = 6.4977 Chinese yuan renminbi)

 

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