China's big pig breeders dig in as losses and debts mount

BEIJING : The biggest pig breeders in China, consumer of fully half the world's pork, seem to have bitten off more than they can chew. Big agribusinesses have elbowed their way into the sector and are rapidly modernising it, but have expanded pig herds so aggressively that, with demand now in a downturn, their hog prices are falling, losses are mounting, and debt is rising. More huge losses are expected next year, putting China's pig enterprises under pressure to slim down their breeding herds and sell off farms, many of which are sitting empty. For now, however, they are digging in, hoping to wait out the market downturn and reap a bonanza when prices eventually recover. And that is raising the stakes, not just for themselves but for their overseas feed suppliers, genetics firms, and the struggling global pork trade. "It all comes down to how deep these companies' pockets are," said Lyle Jones, China sales director at U.S.-based Genesus Inc, which supplies breeding pigs to ...