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Hog Producers Lost Billions in H1 2026

Twenty of China's leading hog producers posted a combined loss of 23.3 billion yuan (close to $3.5 billion at the current exchange rate) in the first half of 2026, according to a Chinese journalist's compilation of financial results released by the publicly listed companies. (The results did not include privately held Twins Group--last year's number 3 producer.)

Partial list of company results.

These companies had posted substantial profits last year. The article attributed the poor 2026 results to the most severe downturn in the hog industry in the last 10 years which led to a 20.5% year-over-year drop in live pig prices during H1 2026. The hog-grain price ratio was below 5:1 throughout most of January-June, causing deep, widespread financial losses. 

Muyuan Foods was the top hog producer, with sales of 39.6 million pigs. Muyuan recorded a net loss of 6.078 billion yuan on revenue of 59.41 billion yuan, but its cash balance of 16.5 billion yuan enabled the company to operate despite losses. 

Muyuan had an oversubscribed IPO on the Hong Kong stock exchange on February 6. Its share price sank from HKD 40 in its first week to a low of HKD 28 on June 25. As of August 31, Muyuan's Hong Kong share price had recovered to HKD 35.54, still 11% below its February level. Muyuan's shares in China's Shenzhen A-share market had a nearly identical trajectory over the course of 2026.

Animal feed is still profitable. Haid, one of China's two top feed companies, reported a net profit of 1.7 billion yuan for H1 2026, although a report commented that Haid's profit was dragged down by poor results in its swine business. Haid's fish feed sales were up 31% year-over-year, while its hog feed sales were up 15%. Wens Foods also offset its losses on hog production with a 15.23% increase in revenue from its poultry operations. 

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