(Yicai Global) Sept. 2 -- Muyuan Foods headed profit gains among China’s hog breeders in the first six months of the year, reporting a more than 7,000 percent increase, thanks to high pork prices.

The country’s 25 listed pig farmers posted an average 748 percent surge in first-half net profit, the Paper reported today, citing figures from financial data provider Wind Information. Muyuan Foods earned CNY10.8 billion (USD1.6 billion).

African swine fever decimated China’s hog herd last year. A still insufficiently large, but gradually recovering, herd kept pork prices high this year.

Sixteen of the 25 companies doubled their operating income and net profit in the first six months, and more than half doubled net profit. Only Leshan Giantstar Farming & Husbandry had a loss.

Many breeders reported net profit gains of more than 10-fold. Beijing Dabeinong Technology Group wrung out CNY893 million (USD130.8 million), up 2,556 percent. Hunan New Wellful had CNY149 million in a 2,384 percent leap, while Fujian Aonong Biological Technology Group landed CNY338 million, up 1,479 percent.

Jiangxi Zhengbang Technology, Shenzhen Kingsino Technology and Tecon Biology also logged growth that neared 1,000 percent in the first half.

New Hope Liuhe, Henan Shuanghui Investment & Development, Wens Foodstuff Group, Muyuan Foods and Jiangxi Zhengbang Technology ranked in the top five, with CNY44.7 billion, CNY36.3 billion, CNY36 billion, CNY21 billion and CNY16.6 billion in respective gains of 18.8 percent, 23.7 percent, 27.8 percent, 51 percent and 10.9 percent.

Hog prices are still exorbitant compared with previous years, though they fallen off from a peak at the start of this year. The average price of domestic and foreign three-breed hybrid pigs for slaughter was CNY34.73 (USD5.1) per kilogram in the first half, up 142.87, per the report, which cited statistics from commodity market information service provider Sublime China Information Group.

The tight pork supply may ease in future. A swelling live pig inventory indicates the growth in the number of live pigs in five to six months will fundamentally remedy the problem of deficient stocks, an official with the Ministry of Agriculture and Rural Affairs said earlier.

China's live pig inventory fattened up by 4.8 percent in July from June in the sixth straight month of growth and an annual 13.1 percent increase, the first since April 2018. That marks another turning point in the recovery following annual growth of the sow herd in June, according to agriculture ministry data.

Editor: Ben Armour