Pork giant China keeps results fairly stable

The Chinese WH Group, which also owns the American Smithfield Foods, has realized a profit of $785 million for the first nine months of the year. That is 11,8% less than in the same period last year. Sales did increase, by almost 7%, to just over $20 billion.

The sold volume of the WH Group increased by 10,1%. In China growth was 15,4% and in the United States 5,2%. The declining result is mainly due to the sharp fall in pork prices in China. According to the company, the average pig price for the first nine months of the year was $3,44. A decrease of 36% compared to a year earlier.

United States positive
The fact that the result fell relatively less sharply than the pig prices in China is due to the favorable market conditions of the American branch of the company. So far this year, the sector in the United States has benefited from a relatively tight supply and strong demand for pork, both nationally and internationally.

Prices for pigs in the United States averaged $1,63 per kilogram of slaughter weight over the first nine months of the year. That was no less than 73,4% higher than in the same period in 2020. It ensured that the result of the Chinese pork processor remained at a good level despite the difficult conditions in the home market.

Steve Wissink

Stef Wissink is an editor at Boerenbusiness and writes about current market developments in the dairy and pig market. He also follows Dutch and international agribusiness.

s.wissink@boerenbusiness. Nl

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