China’s second largest pig farmer, Muyuan Foods Co Ltd, reported on Wednesday that full-year profits for 2019 jumped more than 1,000% to $869.8 million due to record hog prices caused by a drop in supply from the devastating African swine fever (ASF) outbreak.
The company sold more than 10 million pigs last year, benefiting from a 140% increase in hog prices in 2019, after ASF wiped out the pork supply and left many breeding farms empty, Reuters reports.
Reports from China indicated the hog herd shrunk by 41% by the third quarter of 2019, but many experts believed the numbers were underreported.
Muyuan Foods’ profit last year far surpassed all previous annual earnings for the company, Reuters reports. Margins rose as high as $500 per hog in parts of China late last year and remain well over $286 per hog today.
These high prices boosted Muyuan’s sales income by 51% to $2.9 billion while pushing its share price up by more than 200%, the article said.
The ASF virus, though deadly to pigs, does not pose a risk to humans or the food supply. For more information on ASF, visit porkbusiness.com/ASF.
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