NEW YORK, NY, Sep 02, 2011 (MARKETWIRE via COMTEX) -- With small family farms falling to the pressure of volatile pork prices, higher costs and an outbreak of disease, industrial-scale farms are becoming an important part of China's pork industry. The Bedford Report examines the outlook for companies in China's Consumer Goods Sector and provides equity research on AgFeed Industries, Inc. /quotes/zigman/103949/quotes/nls/feed FEED -0.04% and Zhongpin, Inc. /quotes/zigman/99817/quotes/nls/hogs HOGS -2.62% . Access to the full company reports can be found at:
www.bedfordreport.com/FEED
www.bedfordreport.com/HOGS
China Daily recently published an article about government-mandated programs to make the same shift to the kind of larger scale operations that now produces more than 70 percent of the hogs in the United States. The Chinese Government says that it will invest $390 million in large pig farms this year and that all farmers and pig farms will receive a subsidy of at least $15 for every sow they raise.
China is both the world's largest hog producer, with more than 450 million animals, and the world's largest pork consumer. This year, due to disease and production shortfalls, China has had to turn to the US and other suppliers for imports.
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A growing number of companies have laid out plans to build or purchases large industrial-scale pig farms.
Despite writing off some of the more than 30 hog farms acquired in the last two years, AgFeed Industries continues to be a growing player in China's hog production sector. AgFeed and the local government together act in partnership with local farmers to secure the necessary financing, provide the necessary guidance, technical and nutritional support in order for the farmers to improve their productivity.
Zhongpin is a meat and food processing company that specializes in pork and pork products in China. Presently Zhongpin is investing about $61.5 million to build a slaughtering and processing plant, low temperature prepared pork plant, logistics center, and research and development center in Nong'an county, Changchun, in the Jilin province of China.
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