In 2024, COFCO Joycome significantly reduced hog slaughter volumes by over 30%, yet nearly doubled its profit to CNY 275 million (USD 38 millon), largely due to improved farming efficiency and the successful integration of its newly acquired feed business. While total revenue declined slightly, branded pork sales and upstream investments in swine and feed capacity highlight the company’s long-term strategy for vertical integration and resilience in China’s evolving pork industry.
Despite a sharp contraction in slaughter volumes, COFCO Joycome has reported a notable financial rebound in 2024, underscoring the strength of its vertically integrated model and the growing strategic value of feed operations within China’s swine industry.
Hog Slaughter Declines, Profit Surges
In its full-year results released on March 25, the company revealed that hog slaughter volumes dropped by 31.5% year-on-year, amounting to 3.56 million head. The downturn stemmed from herd restructuring efforts, the closure of underperforming processing facilities in northern China, and disease challenges during the 2023 winter season.
Yet, COFCO Joycome’s adjusted net profit (excluding fair value adjustments on biological assets) surged to CNY 275 million (USD 38 million), up from CNY 152 million (USD 21 million) in 2023. This result was driven by improved farm-level efficiency, narrowing losses in fresh pork, and the steady contribution of higher-margin segments. Most notably, the integration of COFCO Feed proved pivotal in boosting overall earnings.
Branded Pork Gains Traction
While slaughter numbers dropped, branded pork proved resilient. Fresh pork sales rose by 7.1% to 262,000 tonnes, supported by strong consumer demand for traceable and high-quality meat. Boxed branded pork grew by 9.8%, and the share of branded pork in total revenue rose to 29.4%, up by nearly three percentage points.
Conversely, imported meat volumes fell by 2.5% to 66,000 tonnes, as the company took a more cautious stance amid price fluctuations and policy uncertainties.
Feed: The New Growth Engine
COFCO Joycome completed the acquisition of COFCO Feed in 2024 for CNY 1.57 billion (USD 217.7 million). The feed unit operates 21 facilities nationwide, with combined annual output and sales surpassing 2 million tonnes. In its first year under the Joycome umbrella, the division delivered a CNY 202 million profit (USD 28 million), benefiting from tighter synergy across the value chain and expansion into external markets.
Strategic Revenue Shifts
Total revenue dipped 5.3% year-on-year to CNY 16.33 billion (USD 2.26 billion), reflecting a shift away from import-heavy business. Segment-wise (excluding internal transfers), revenue broke down as follows:
- Swine farming and sales: CNY 3.23 billion (USD 446.7 million)
- Feed products: CNY 5.76 billion (USD 796.1 million)
- Fresh pork: CNY 4.80 billion (USD 664.2 million)
- Meat products: CNY 741 million (USD 102.5 million)
- Imported meat: CNY 1.78 billion (USD 246.4 million)
Despite a top-line decline, operational efficiency and profit margins improved, with the company leaning more on high-value segments.
Segment Performance in Focus
- Swine farming: Profit surged 137.4% to CNY 259 million (USD 35.8 million), bolstered by better biosecurity, smart farming, and breeding innovation.
- Fresh pork: Losses narrowed by CNY 69.58 million (USD 9.6 million), thanks in part to product upgrades such as antibiotic-free linseed pork, now accounting for over half of the segment’s gross profit.
- Processed meats: Operating at full capacity.
- Meat imports: Profit jumped 40.1% to CNY 58.23 million (USD 8.05 million), supported by smarter sourcing and pricing strategies.
Scaling for the Future
Joycome continues to invest across its integrated chain. Notable expansions include:
- Jilin Changling: Fully operational, 330,000-head capacity
- Jilin Taonan and Changling: Two farms under construction, each with 660,000-head capacity
- Hubei Guangshui: A 220,000-head farm under development
By the end of 2024, breeding and reserve sow inventory reached a record 345,000 head.
On the feed side, a new 180,000-tonne facility in Hohhot went online in January 2025, with plans underway to add a further 660,000 tonnes in annual capacity.
Joycome is also modernising its processing footprint. A new pork deboning centre in Beijing’s Pinggu district is set to begin operations in August 2024, enhancing distribution flexibility in northern markets. The company operates additional slaughtering and processing hubs in Jiangsu, Hubei, Jilin, and Inner Mongolia, alongside two western-style meat product factories in Jiangsu and Guangdong.
By the close of 2024, Joycome’s headcount had grown by more than 1,000, surpassing 13,000 employees. The expansion reflects the company’s increasing operational scale and its ambitions in a consolidating Chinese pork industry.
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