Business Maverick: China’s pig farmers mired in boom-bust cycle

Once every three to four years, pig farmers in the world’s largest producing country find themselves trapped in an unforgiving market that pushes some over-leveraged breeders to the brink of a debt crisis.

With pork the most popular protein on Chinese tables, pig breeding can be very profitable with gross margins rising above 30% for some producers when there’s a shortage, driving farmers to expand capacity despite soaring costs. Still, even for the top producers, it’s not always easy to follow the right beat.

Zhengbang Technology sold about 5.5 million pigs in 2018, when a long price slump hurt breeders, leading Chuying Agro-Pastoral Group for instance to default andbondholders with ham. Chuying was eventually delisted from the stock market and its bondholders are yet to get their money back.

In RSA pig farmers struggle to make ends meet. Current price for baconers and sausage pigs are not sustainable

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