Muyuan, one of China’s leading vertically integrated pig producers, is focusing on improving operational efficiency rather than expanding into new sectors like animal health or meat processing. In 2025, the company will prioritise better coordination between pig breeding and slaughtering operations, enhance its genetics programme, and maintain fiscal discipline. It also took its first step abroad through a technical cooperation with a Vietnamese partner, while forecasting a strong profit rebound for Q1 2025.
China’s vertically integrated pig giant Muyuan Foods has signalled a deliberate shift in strategic direction for 2025, focusing squarely on optimising its core operations. During the company’s annual performance briefing on 8 April, Chairman and CEO Qin Yinglin underscored a clear stance: “We currently have no plans to develop animal health products or engage in deep meat processing.”
Core Focus: Slaughter and Breeding
Muyuan’s immediate goal is to strengthen efficiency within its existing value chain, specifically hog slaughter and pig breeding. In 2024, the company reported narrowing monthly losses in slaughter activities, eventually returning to profitability by December. Going forward, Muyuan aims to lift capacity utilisation at its slaughter facilities to over 60%, up from a rate of 43% in 2024. Last year, the company processed 12.52 million pigs.
Qin Yinglin
A key component of the strategy is improving alignment between upstream production and downstream slaughter operations. “We aim to enhance coordination between breeding and slaughter to elevate product quality and boost profitability,” Qin Yinglin said. This integrated approach reflects broader agribusiness trends in China, where vertical integration offers greater control over costs and traceability.
Genetics: Building a Competitive Edge
Muyuan is also intensifying efforts in swine genetics, with increased investment in R&D to tailor breeding programmes to Chinese farming conditions and consumer preferences. Emphasis remains on carcass output, meat quality, reproductive performance, and growth efficiency.
Chief Strategy Officer Qin Jun noted that Muyuan is not only self-sufficient in breeding stock but also is emerging as a supplier of high-quality genetics across the industry. In 2024, the company sold 465,000 breeding pigs externally—a testament to its growing influence in genetic development. The model mirrors the playbook of global leaders such as PIC and Hypor, where proprietary genetics serve both operational and commercial purposes.
Cautious International Expansion: Vietnam as a Pilot
Muyuan also expanded internationally in 2024, initiating technical cooperation with Vietnamese firm BAF. The collaboration covers farming technology, facility design, and staff training. While described as an “exploratory phase,” it signals interest in regional markets.
“Our Vietnam team is getting familiar with the local environment. Based on strategic needs, we’ll determine specific market entry models for other regions,” said Qin Yinglin. The prudent approach suggests the company is keen to avoid overextension while focusing on strengthening domestic operations.
Capital Discipline: A Shift to Steady Growth
CFO and Vice Chairman Cao Zhinian outlined a marked shift in financial strategy, moving from aggressive expansion to steady, return-focused investment. Capital expenditure for 2025 is projected at CNY 9 billion (approx. USD 1.23 billion), with CNY 3 billion allocated to pig house upgrades and CNY 4–5 billion earmarked for building up Muyuan’s Zhengzhou industrial park and genetics platform.
This fiscal restraint reflects an evolving market reality, where tightened margins and heightened competition are reshaping investment behaviour across China’s pork sector.
Signs of Recovery: A Promising Start to 2025
Muyuan has forecast a strong rebound in first-quarter results, projecting net profits of CNY 4.3–4.8 billion (USD 587.5–655.8 million). This comes as a welcome turnaround from the CNY 2.4 billion (USD 328 million) loss posted in the same period last year. The recovery is being driven by a combination of increased pig sales, higher market prices, and improved cost control.
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