April 29, 2019 / 10:04 AM / 10 months ago

CORRECTED-Chinese pork processor Shuanghui reports first quarter jump in net profit

(Corrects headline and first paragraph to remove all references to profit warning)

BEIJING, April 29 (Reuters) - China’s top pork processor Henan Shuanghui Investment and Development Co Ltd said on Monday its net profit in the first quarter rose 20.3 percent to 1.28 billion yuan ($190.16 million), after it slaughtered 4.7 million pigs in the reported period, about a fifth more compared to a year earlier.

The company, owned by Hong Kong-listed WH Group Ltd , did not comment on the potential impact of rising raw material prices.

Deadly African swine fever has caused huge losses in the world’s largest hog herd, pushing up the price of live hogs since March.

Hog prices in China were under pressure earlier this year, however, as measures put in place to tackle the spread of African swine fever led to a build-up in inventory in many parts of the country.

That reduced raw material costs for processors like Shuanghui, but hurt big producers like Wen’s Foodstuff Group Co Ltd and Muyuan Foods Co Ltd.

African swine fever is an incurable disease that is fatal to pigs but does not harm people.

Prices in China could jump by 70 percent in the second half of the year, said an agriculture ministry official earlier this month.

Rising pork prices are also expected to pressure major overseas producers such as Hormel Foods Corp, as surging imports from China drive up global prices.

$1 = 6.7313 yuan Reporting by Dominique Patton; Editing by Shounak Dasgupta

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below