Wens Group’s operating revenue of broiler business decreased 21.69% year on year in Q1, 2017

By CnAgri2017-05-09 11:28:43 Print

Affected by H7N9 epidemic situation, the consumption of live chicken dropped and broiler prices kept low. In Q1, 2017, Wens Group’s operating revenue of broiler business was about 3.165 billion yuan, decreasing 21.69% year on year, the proportion of which dropped to 24.72% which decreased 5.32% year on year.

(1) The growth of broiler business grew slowly: Wens Group’s operating revenue of broiler business accounted for more than 50% of its total operating revenue during 30 years before 2013, and was the leading source of its profit. In 2013, the Group’s broiler business suffered a loss and operating revenue declined under the impact of avian influenza. From 2014 to 2016, its broiler business grew slowly with a growth rate about 3-5%, and its operating revenue increased to 18.593 billion yuan and accounted for 31.32% of its total operating revenue in 2016.

(2) Hog business developed rapidly: since 2013, Wens’ hog business has expanded rapidly with a growth rate of 40-50%, the operating revenue increased to 37.643 billion yuan in 2016 from 18.670 billion yuan in 2014, and the proportion of operating revenue of hog business increased to 63.42% in 2016 from 48.22% in 2014.

(3) Other businesses also developed side by side: Wens Group continuously optimize the industrial structure to enhance synergistic effect by developing animal health, agricultural and animal husbandry equipment, dairy business, food processing, fresh products and other businesses.

(4) Slaughter of broiler increased, but broiler prices declined: in Q1, 2017, the slaughter of broiler was 202 million birds, increasing 17.44% year on year; the prices of live broiler only were 7.92yuan/kg, down 32.84% year on year; broiler feeding industry slipped into the red again.

As the impact of H7N9 faded away gradually, the prices of live broiler have bottomed out and begun to rebound. Poultry feeding department of Wens Group stabilized the development of broiler business while exploring and developing layer business and speeding up the development of meat duck.