Chinese pork processing giant WH Group processed 30 per cent more poultry last year, the company said March 28, 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 per cent rise in annual profit to US$1.4 billion, largely thanks to a pre-tax 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.
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Revenue grew 3.1 per cent 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 as more hog producers are building slaughterhouses to integrate operations.
Growth of the poultry business is key to its diversification, the company said in a statement. It processed 240 million chickens, geese and turkeys in Europe and China last year, up 30 per cent from 2021.
