China pork producers surge as swine disease cuts supply

China pork producers surge as swine disease cuts supply


Shares in China’s leading pig producers have soared to record levels despite one of the worst disease outbreaks in years, as investors bet on tightening pork supplies and strong government support for leading producers.

 

China is battling the world’s fastest spreading outbreak of African swine fever, an incurable pig disease that has been confirmed in 28 of its provinces and regions.

Livestock shares initially slid on the early outbreaks in August and September. But they have climbed since November, even as outbreaks continued and as transport curbs on infected provinces hit prices and hurt profits at most producers.

Shares in Muyuan Foods Co Ltd, the No.2 producer, have doubled in the past six months. No. 4 producer Jiangxi Zhengbang Technology Co has surged more than 200 percent, while rapidly growing Tech-bank Food Co Ltd is up 143 percent.

While listed companies still account for only a modest proportion of China’s annual production of 700 million pigs, they are growing quickly as Beijing promotes modern farm techniques. Muyuan produced 11 million pigs last year.

 

full story – Reuters