Hog sales grow among big players despite operating losses

Muyuan, the largest hog producer, announced combined January and February sales of 8.84 million hogs with a revenue of 14.665 billion yuan.

This sales volume is up 13% compared to last year. Average prices during that period were 14.49 yuan per KG.

Competitor New Hope announced sales of 1.73 million hogs in February, an increase of 77.3% year on year and revenue of 2.54 billion yuan. Average prices during the month were 14.32 yuan per kg.

The three largest players reported sales of 15.4 million hogs during January and February, compared to 12.7 million for the same period last year.

Muyuan may also now be facing challenges raising further capital during this down cycle in the hog market. The company was planning on selling $1.5 billion USD in global deposit receipts in Switzerland to raise capital.

On Thursday, it was reported that Chinese regulators were blocking approvals of new GDR issuances following a wave of companies looking to sell shares in Switzerland.