Home > News > CnAgri insight > Article

Hog breeding profit decreased as a whole in the first half of 2017, but Muyuan realized growth

China Agriculture Report By CnAgri2017-07-24 14:43:13China Agriculture Report Print   Hog breeding industry entered into downward stage in 2017, and the profit of feeding self-produced pigs decreased 50.51% year on year. From hog breeding business of three major enterprises including Wens, Muyuan and Truein in the first half of 2017, the operating revenues of Wens and Truein both declined somewhat, but Muyuan realized better growth.
  In the first half of 2017, the slaughter of hogs of Wens, Muyuan and Truein respectively was 8.9712 million head, 2.95 million head and 1.1938 million head, realizing year-on-year changes of 11.46%, 156.08% and 15.57%; their operating revenue respectively was 16.58 billion yuan, 4.234 billion yuan and 1.8 billion yuan, increasing -6.8%, 86.03% and -4.41% year on year; the average gross profit of hogs of Wens, Muyuan and Truein respectively was 3.87yuan/kg, 4.12yuan/kg and 0.07yuan/kg.
  We can see that the slaughter of these three companies all increased year on year in the first half of 2017, but the operating revenue of Wens and Truein respectively declined and only Muyuan realized growth in operating revenue; from the perspective of gross profit, Muyuan has kept a relatively higher gross profit, which reflects the good control of production cost in breeding link.
  Recently, Muyuan binds employees’ interest to stimulate employees’ working enthusiasm by implementing the third phase ESOP, which can effectively solve cost increase problem caused by management efficiency decline that may appear in the process of expanding in different areas, make the company keeping better cost advantage in later continuous scale expansion and bring about long-term growth in profit.

Explore Realted News »
Explore Realted Reports »