Chinese pork giant WH Group processes more chicken to offset competition

WH

28/03/2023 12:16

BEIJING, March 28 (Reuters) - Chinese pork processing
giant WH Group Ltd  0288.HK  processed 30% more poultry last
year, the company said on Tuesday, as it diversifies into other
meats to lower costs and become more competitive. 
    WH Group, which owns U.S.-based Smithfield Foods and also
has operations in Europe, reported a 34.3% rise in annual profit
to $1.4 billion, largely thanks to a pretax gain of $414 million
from the sale of spices company Saratoga Specialty Foods.
    Taking out the sale, profit before biological fair value
adjustments was flat compared with a 2021 profit of $1.04
billion.
    Revenue grew 3.1% to $28.14 billion, thanks to significantly
higher sales volumes of packaged meats in Europe from newly
acquired operations and higher prices in both the U.S. and
Europe to offset increasing costs.
    In China, however, sales volumes were hit by COVID
prevention measures. 
    Competition in pork processing is growing in China, however
the company said in a presentation, with more hog producers
building slaughterhouses to integrate operations.
    Growth of the poultry business is key to its
diversification, the company said in a statement, addding it
processed 240 million chickens, geese and turkeys in Europe and
China last year, up 30% from 2021.
    
    

 (Reporting by Dominique Patton, Editing by Louise Heavens)
 ((dominique.patton@thomsonreuters.com;))