China’s largest pork processor, Shuanghui increased hog slaughter by 19.3% in H1 2025, but profits remained under pressure due to weak pork prices. The company is shifting focus to value-added products and retail expansion to navigate a challenging market.
China’s largest pork processor, Shuanghui, a subsidiary of Hong Kong-listed WH Group (Wanzhou International), reported a notable 19.3% year-on-year increase in hog slaughter volumes during the first half of 2025. However, despite this growth in throughput, profitability remained under pressure due to prolonged low pork prices and heightened competition across the domestic meat sector.
According to the company’s interim report, the boost in slaughter figures underlines Shuanghui’s efforts to regain processing scale after a contraction in 2024, when volumes dropped to around 10.28 million head—a 19.4% year-on-year decline.
Higher Output, Lower Margins
According to Shuanghui Development’s 2025 interim report,between January and June 2025, fresh pork production reached 679,800 tonnes, a 21.0% increase compared to the same period last year. Total pork sales, including imported volumes, climbed by 11.17% to 688,600 tonnes. As a result, inventory levels declined by 6.9% to 94,400 tonnes.
Despite the uplift in volume, the revenue from fresh pork rose only modestly by 3.33%, totalling CNY 13.77 billion (approximately USD 1.92 billion). This segment now accounts for 48.46% of the company’s overall turnover. More tellingly, the gross margin on fresh pork fell slightly—by 0.26 percentage points year-on-year—settling at just 4.90%.
The company attributed this margin compression to an unrelenting decline in pork prices throughout the reporting period. Unlike 2024, which saw a seasonal price recovery in the second half, 2025 has thus far offered no such relief. This downward trend not only eroded profitability but also led to inventory write-downs and increased impairment charges.
Strategic Response in a Competitive Landscape
In response to challenging market dynamics, Shuanghui has rolled out a series of expansion and efficiency initiatives. These include broader customer acquisition efforts, an extended retail network, and tighter integration between production and sales operations. While these measures succeeded in boosting slaughter and sales volumes, they have not yet been sufficient to restore profit margins to previous levels.
Outlook for H2 2025: Value-Addition and Retail Expansion
Looking ahead, the company has outlined several key strategies for the remainder of the year:
- Tapping into Seasonal Demand:
Shuanghui aims to leverage stronger consumer demand in the latter half of the year—traditionally a peak season for meat consumption—by intensifying marketing, improving store efficiency, and expanding its retail footprint.
- Focus on Value-Added Products:
The company plans to accelerate development of pre-prepared, portioned, and customised pork products designed for modern distribution channels. Management believes these offerings will help lift product premiums and support margin recovery.
- Enhanced Product Segmentation:
By increasing the share of segmented cuts and differentiated products, Shuanghui hopes to improve its competitive positioning and create operational synergies across its supply chain.
Despite the near-term headwinds, Shuanghui remains committed to its long-term goal of driving growth through value addition, innovation, and market responsiveness in China’s evolving pork sector.
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