Food Scandals Rocked China’s Animal Husbandry Industry in 2013, but the Industry Looks Set to Bounce Back Strongly, Says CCM

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·         'Fast-growing chickens' scandal and H7N9 flu outbreak severely damaged several companies' share prices and profits in 2013

·         However, industry is already bouncing back and CCM believes Chinese pork and poultry industry remains an attractive investment proposition

[Guangzhou, September 10^th 2014] A succession of damaging food scandals took a severe toll on the Chinese animal husbandry industry in 2013, but several companies are already bouncing strongly and could be an attractive investment proposition for 2015, according to CCM, China's leading market research firm.

Events such as the H7N9 flu outbreak and the 'fast-growing chickens' scandal led to a plunge in the share prices of several major Chinese animal husbandry companies. Shandong Minhe Animal Husbandry Co. Ltd. (Minhe) saw its shares drop in value by 50% almost overnight, while the share price of Fujian Sunner Development Co. Ltd. (Sunner) declined by over 40% between mid-2012 and the end of 2013.

However, the industry as a whole has responded well to these shocks. Even in 2013, most companies saw revenues rise, while yields are improving year by year and consumer demand for animal products has continued to increase, despite the recent scandals. Sunner's share price is now back to its mid-2012 level.

Yang Yuan, Researcher at CCM, commented: "In the short term, the food scandals of 2013 were extremely damaging to many Chinese animal husbandry companies, but long term they might produce some positive effects. Firstly, the crisis accelerated industry consolidation, which will help modernize the industry and weed out the more reckless companies. Secondly, the industry appears now to be focusing more on R&D, which will be very valuable long-term. Chuying Agro-Pastoral's year-on-year R&D spend increased by almost 40% last year, and Sunner's by over 50%.'

CCM has released Annual Report Analysis of Animal Husbandry Listed Companies in China, a detailed analysis of 11 of China's major publicly traded animal husbandry companies. The report will contain details of the following, as well as predictions for the future prospects of the industry:

- Revenue and net profit of the listed animal husbandry companies, 2009-2013;

- Business structures of the listed animal husbandry companies by revenue, 2013;

- Revenue of the listed animal husbandry companies by region, 2012 and 2013;

- Revenue from the top 5 customers of the listed animal husbandry companies, 2012 and 2013;

- Revenue and gross profit margin of animal husbandry business of the listed animal husbandry companies, 2009-2013

For more information about CCM and the Animal Husbandry Listed Companies in China report, please visit www.cnchemicals.com or contact +86-20-37616606.