China’s leading poultry company has seen first half year profits climb by more than 50%, helping offset losses in the pig sector caused by African Swine Fever (ASF).
Wen Foodstuffs Group Co Ltd reported this week that its first half net profit surged by 50.8% due to surging poultry demand.
The company said net profits for the first six months of the year had risen from 917.3 million yuan to 1.38 billion yuan ($195.4 million). Revenue rose 20.3% to 30.4 billion yuan from the same period, with the company worth around $30 billion.
News agency Reuters reported that sales volumes of broilers had jumped by 17.5% in the first half, while duck sales had risen by 21.5%. Pork supplies remain low, although better than they were, which has pushed up demand for other proteins, such as duck and chicken.
While prices have come under pressure from rising supply to counter the loss of pig production across the country from ASF, it is clear that the huge increase in sales has boosted profits.
Wens has targeted an expansion in broiler output of at least 10% this year and said in June that it would buy Jiangsu Jinghai Poultry Industry Group.