Hog breeder announces plans to expand production
Wen’s group announced that it projects the company’s 2022 hog slaughter volume at 18 million hogs and is looking to another 8 to 10 million hogs to its herd during the remainder of the year.
On the breeding side, the company said it currently has 1.1 million breeding sows, and it looking to expand this to 1.4 million by the end of the year.
Rising feed costs also remain a challenge and the company said its total cost of hog raising was at 17 yuan/kg in May. Prices have risen above this level recently, with the national average price estimated at 17.52 yuan/kg.
But with the company’s cash flow just turning positive in May, this also illustrates the difficult position that smaller or less efficient companies are in.
As the market has continued to rebound, many companies have changed focus from destocking to restocking. The general sentiment for the second half the year remains optimistic but prices may struggle as large breeders such as Wens are now looking to expand their herds.
Heavy rains hit Jilin, flooding risk rises
17 reservoirs in Jilin are above their flood limit level after heavy rains in recent days. Some areas of Jilin and Liaoning province have received 200-400% for their normal precipitation levels in the past 10 days.
Additional rain hit the province again this morning, with some areas getting up an additional 90mm (3.5 inches). Soil moisture monitor maps indicate that much of the province is now classified as having excessive soil moisture.