May 27, 2008

China's Sichuan recovers feed manufacturing

China's earthquake-hit Sichuan province has resumed its meat and feed manufacturing, eleven days after the calamity.

Mianyang Branch, one of the subsidiaries of New Hope Agribusiness, the largest feed maker in China, is the last one that has recovered operation, said Xiang Chuan, spokesperson for the group.

Mianyang is one of the hardest hit areas by the earthquake. New Hope Agribusiness announced on May 16 that all of its branches were under normal operation besides Mianyang.

Gaojin Food, another publicly-owned company in Sichuan, forecast in its first quarter financial report that it net profits for the first half of 2008 will fall 60 percent to 90 percent due to the rising purchase price of pig caused by short supply.

Meanwhile, Wenchuan and Beichuan, the epicenters of the earthquake, are not major bases of pig breeding.

Chinese industry analysts explained that the earthquake will not pose long-term influence in pig supply.

Meanwhile, related authorities have come up with favorable policies to encourage pig feeders to ensure the supply.