BEIJING, Feb 26 (Reuters) - China’s No. 2 pig farmer Muyuan Foods Co Ltd said on Wednesday that full-year profits for 2019 jumped more than 1,000% to 6.1 billion yuan ($869.84 million) thanks to record hog prices last year caused by a plunge in supplies.
The company, which sold more than 10 million pigs last year, benefited from a 140% increase in hog prices during the year, after an epidemic of deadly African swine fever killed millions of pigs and left many breeding farms empty.
China said the hog herd had shrunk by 41% by the third quarter of 2019, although some believe the damage was much worse.
The huge profit far surpassed all previous annual earnings for the company. Margins were as high as 3,500 yuan per hog in some parts of China by late last year, and though they have dropped slightly, remain well over 2,000 yuan.
The high prices boosted Muyuan’s sales income by 51% to 20.2 billion yuan and also pushed its share price up by more than 200%.
Muyuan shares closed down 3.3% on Wednesday at 116 yuan a share.
$1 = 7.0128 Chinese yuan renminbi Reporting by Dominique Patton