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Muyuan saw great decrease in performance due to Africa swine fever, but Wens continuously realized stable growth.

China Agriculture Report By CnAgri2018-11-09 13:57:50China Agriculture Report Print According to pig sales of various listed companies in September, Muyuan whose production capacity is mainly located in main pig producing areas has been seriously affected, with pig sales performance down by over 30%; Wens Group who adopts “company + farmer” farming model with relatively decentralized capacity layout achieved monthly sales of more than 2 million heads for the first time.
African swine fever is the major factor influencing current pig market. Since August 1, 47 outbreaks of African swine fever have been reported in the mainland of China, and pig transport has been restricted across the country. Slaughter of pigs in main producing regions has been delayed seriously, pig prices continued to remain low. In main selling areas, pig sources are tight, and pig prices hovered at a high level. The difference of profits for raising pigs among different regions is greater.
Muyuan’s pig sales were significantly affected by the disease, and fell by more than 30%. Muyuan adopts integrated farming model of breeding and raising pigs by itself, and its capacity is mostly distributed in Henan and Liaoning where African swine fever broke out and pig transport is restricted. The sales performance of Muyuan was affected. In September, Muyuan realized sales volume and sales value of 774,000 heads and 1.001 billion yuan respectively, decreasing by 31.26% and 29.01% from the previous month. Similarly, Truein whose capacity is mainly  distributed in Henan was also seriously impacted. In September, Truein’s sales volume and sales value of pigs were 124,200 heads and 139 million yuan, declining by 39% and 30.15% month-on-month, and its sales performance dropped sharply.
By adopting “company + farmer” model, disease risks of businesses are  dispersed, and Wens Group continued to realize growth in pig sales volume. Wens cooperates with small scale farmers in different areas through “company + farmer” model which effectively disperses disease risks. In September, Wens achieved monthly pig sales of 2.1451 million heads which broke through 2 million heads for the first time and rose by 8.11% month-on-month; and its sales revenue reached 3.367 billion yuan, up 6.35% from the previous month, raising steadily. Similarly, Zhengbang Science and Technology also realized good performance growth with “company+farmer” model as main business model. In September, its pig sales volume and sales value reached 554,300 heads and 783 million yuan respectively, increasing by 22.74% and 25.08% from the month earlier.
Under the impact of African swine fever, the anti-risk capacity of leading companies has been highlighted. It’s estimated that Wens will see steady growth in pig profits for pig prices in the Spring Festival in Q4.

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