According to
China's largest feed and meat producer New Hope Liuhe, there first-half net
profits surged to 87.14% because of an increase in the sales of feed and
poultry. The net profit of the company
was reported 1.56 billion Yuan, up from 846 billion Yuan a year ago. Based on
the data collected from the Shenzhen Stock Exchange, the revenue was reported
35.29 billion Yuan, an increase of 11.54 % from the previous year. The company
along with another giant poultry producer Chinese company Wen's Foodstuff showed
strong performance and approximately 400 million chicken and ducks in the
period.
According to the
statement released by the New Hope Liuhe, the jump in the poultry and pig
prices because of a supply shortage in the market in the first half of 2019 have
pushed up the prices and the firm's profits.
Though the feed industry saw a sudden drop in demand because of the
outspread of ASF in China the company sold 8.76 million tons of feed in the
first half as the sharp rise in the sales of poultry and aquaculture feed made
up the loss from pig feed sales. The company felt the impact of ASF as its pork
product sales fell to 18.89% and the company sold 1.34 million pigs during the
period. New Hope Liuhe has its pig farming unit and also contract it from local
farmers, and is planning on expanding pig production unit both domestically and
internationally.
Recently, the
company announced the stocking of new pig farms in Vietnam that is expected to
produce 300,000 hogs per year by 2021. Furthermore, the company is also
planning on building a feed mill on the same site; it has eight other feed
mills in Vietnam, which contributed 700,000 tons of feed in 2018. Along, with
expanding in the pig industry, the company has also expanded its operations in
the broilers; to control the supply and increase the production of value-added
products.
The company is
planning on spending CNY 25.4 million to build a new poultry facility in Linyi,
Shandong province that is expected to produce 3.2 million broilers per year
with one of the new shed that will be capable of raising 460,000 broilers per
year. According to CITIC Jiantou Securities,' the firm wants to increase
profitability by bypassing traditional wholesale channels to supply more
value-added products to fast-food restaurants and supermarkets'. The company is
the second-largest producer of broilers in the country and slaughter 700
million broilers a year.
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