Q2 Pork Prices Will Remain Low - Experts

Major pork producers will remain financially strained in Q2 as prices stay low, and demand slowly recovers, according to Yicai. The news agency said many companies plan to issue convertible bonds and cut costs to survive the difficult time. In Q1, major firms in the sector lost CNY6.7 billion in net profit, as prices averaged around USD14 per kg, below the break even point of between USD15-18 depending on producer. One company Yicai interviewed was optimistic about the third and fourth quarter, as firms lower their supply output, forecasting prices could exceed CNY22 per kg in some months.