Listed Firms Turn to Pig Breeding

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Listed Firms Turn to Pig Breeding

18 June 2012

CHINA - Many listed companies are eyeing pig breeding industry as pork prices keep rising and earlier harsh market conditions forced many individual pig farmers out of the scene, reported Securities Daily.

According to incomplete statistics, there are nearly thirty companies in the A-share market are invloved in pig breeding business, some of the companies originally had nothing to do with the farming industry,

Wang Guihu, chief analyst of JRJ.com, told Securities Daily that currently, feeding costs increased substantially, while the stocks of live pigs and sow herds declined. As a result, pig prices keep rising, and that has a significant impact on pig supply. In this context, many listed companies got involved in pig breeding, indicating optimism about the prospects of the hog market.

But Dr Guihu also noted that the deviation shows these companies are not focused enough on their core businesses.

Some experienced observers expressed their concern, saying the biggest problem for layman breeders is how to keep up management after the money is injected into the enterprise. Besides, pig breeding has always been an industry with high risks.