News Pigs
WH Group slaughters fewer pigs in China
WH Group, the world's largest producer of pork, slaughtered about 46% fewer pigs in China last year. Domestic supply was extremely tight due to African swine fever. In order to make the best possible use of the production capacity in processing, WH Group has increased imports considerably.
Processing imported meat ultimately reduced the volume in China by only 6,9%. The meat giant is therefore satisfied with the financial results, given the turbulent circumstances, although the operational profit did drop a bit. Sales increased by 6,2% (driven by high meat prices) to US$25,6 billion, operating profit fell 14,9% to US$1,7 billion.
A spokesperson for WH Group also returned in a statement to the use of illegal vaccines on Chinese pig farms in the second half of 2020. The vaccines have not had the promised effect. On the contrary, vaccines did not work and resulted in extra mortality in the Chinese pig herd. The WH Group has even adjusted its production and price forecast for 2021 on this. Production will be lower and the price higher than previously estimated.
Production is also lower, according to Rabobank
This month, Rabobank also mentioned the use of illegal vaccines as the cause of a recent decline in the Chinese pig population. In the period from December to February, it shrank by 3 to 5% per month, according to the bank. Rabobank analysts expect pork production to increase by 8 to 10% for the year as a whole.
Steve Wissink
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