China upturn lifts Genus’ porcine sales

A trading update from global cattle and pigs genetic business Genus reports a good performance from its swine division, particularly in North America and China, but difficult market conditions for the bovine business, especially in Europe and South America. The report covers the first four months of the 2022 financial year that opened on July 1st.

The pig division, PIC, saw volumes and revenues above those of the previous year. Live pig prices in China continued to increase, with production returning to profitability and Genus expecting producers there to have regained the confidence to replace and/or rebuild their sow herds over time. However, this recovery could be offset by ongoing COVID-19 control measures in China that could restrict the demand for pork.

PIC China believes it is well placed to benefit from demand for its elite porcine genetics as the market recovers and consolidates into fewer but larger units over time.

Genus ABS, the group’s cattle division, saw overall volumes little changed year-on-year, although there was revenue growth through price increases and changes in the product mix. The company’s sexed semen and beef product volumes continued to grow, but conventional dairy semen volumes declined markedly. By region, the Latin American market saw producers facing inflationary cost pressure reduce their demand for dairy and beef genetics, notably in Brazil. The Europe, Middle East and Africa region also reported reduced demand.

Looking ahead, Genus expects profitable pig production in China to underpin improved demand for its porcine genetics in the second half, despite COVID-19 restrictions, with the company well positioned to capture the growth.

A trading update from global cattle and pigs genetic business Genus reports a good performance from its swine division, particularly in North America and China, but difficult market conditions for the bovine business, especially in Europe and South America. The report…