China’s Wen’s Food Group profit doubles in spite of ASF

Despite the ongoing troubles caused by the African swine fever (ASF) outbreak, Chinese poultry and pork company Wen’s Food Group saw its net profit jump 50.8% for the first half of 2019.

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Phongphan, Bigstockphoto.com
Phongphan, Bigstockphoto.com

Despite the ongoing troubles caused by the African swine fever (ASF) outbreak, Chinese poultry and pork company Wen’s Food Group saw its net profit jump 50.8% for the first half of 2019.

Net profit for the first six months of the year was reported at CNY1.38 billion (US195.4 million), essentially doubling its net profit of CNY917.3 million for the same period of 2018.

According to a report from Reuters, the increase in profit resulted because the demand for poultry in China surged while the country dealt with pig losses from ASF. The demand for Wen’s poultry in China more than made up for the losses faced by its pork business after ASF hit the Chinese pig industry. The company’s chicken sales volume increased 17.5% in the first half on a year-over-year basis, while its duck sales increased by 21.5%.

Wen’s also produces geese and pigeons.

While the number of pigs lost in China due to ASF has been difficult to calculate, a report issued by Rabobank in late July estimated that China had lost about 40% of its pig herd, with losses expected to reach about 50% by the end of 2018.

Wen’s Food Group, according to the WATTAgNet Top Poultry Companies Database, is a leading producer of pigs and poultry in China, having consolidated 170 companies to encompass 53,000 family farms across China. Wen’s is the fifth largest poultry company in the world and the second largest in China, ranking behind New Hope Group, which is the fourth largest poultry company in the world.

Wen’s Food Group slaughters an estimated 807 million chickens annually.

The company in 2015 announced plans to increase pig breeding production by 20 percent. Part of its growth in the pork industry involved the construction of a new pig complex in the Ahnhui province with the government of Suzhou City.

View our continuing coverage of the African swine fever outbreak.

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