On a recent Q&A session with several investment institutions, Wens said it will be challenging for the pig farming industry to fully return to its pre-ASF level if the disease persists.
The company listed several main factors to back up the opinion: if the ASF outbreaks continue in China, the mortality rate will always be higher than pre-ASF levels; the added investment in fixed assets, equipment and facilities, and manpower will push up the production cost as the disease prevention and control improved through various measures.
However, as long as the producers continue to implement prevention and control measures and enhance competitiveness, they can still achieve sustained and high-quality development, as noted by Wens.
The company revealed that ASF has caused some losses last winter and this spring in parts of the industry. Overall, the outbreaks were manageable. Wens was able to maintain stable production with its large-scale operation and the ability to promptly restock its sow herd. As the weather warms up, the company will find it much easier to perform disinfection and other tasks, creating favorable ASF prevention and control conditions.
Wens Shares also said that the company set the primary goal in production cost reduction at less than CNY 8 ($ 1.16) per kilogram in 2023. It has reported about CNY 8.6 ($ 1.25) per kilogram in hog production in 2022.