FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “China Xiangtai Food Co., Ltd. Announces 300% Supermarket Sales Growth Amidst the 2019 Novel Coronavirus Outbreak.”
China Xiangtai Food Co. Ltd. (NASDAQ: PLIN) (the “Company” or the “PLIN”), an emerging growth company primarily engaged in pork processing in China, today announced that its supermarket sales growth of 300% during Chinese New Year 2020 compared to the same period of last year despite of the ongoing 2019 Novel Coronavirus  .
Headquartered in Chongqing, China, China Xiangtai Food Co., Ltd, is a food company primarily engaged in pork processing. The Company’s operations span key sections of the pork processing value chain, including slaughtering, packing, distribution, and wholesale of a variety of fresh pork meat and parts. Primarily focused on pork products, the Company also offers other fresh and processed products, including beef, lamb and poultries. Through its core values, the Company is committed to maintaining the highest standards of food safety, product quality, and sustainability to provide high-quality, nutritious, and tasty food in a responsible manner through its portfolio of trusted brands. For more information, please visit http://ir.plinfood.com/.
Over the course of the last decade, advancements in technology have helped transform the livestock farming market. Precision livestock farming technology made traditional livestock farming activities more efficient and economical. Additionally, the increasing global demand for both meat and dairy products, extended profitability and high yield and its minimal impact on the environment and climate change are fueling the growth of the precision livestock farming market. As a result, it directly impacts the global meat industry. Meanwhile, the market value of processed meat is expected to cross the trillion-dollar mark by 2024, which is a phenomenal increase from its 2019 valuation of USD 587.15 Billion, according to data provided by Market Data Forecast. And as the demand for meat rises worldwide, so must the production of meat. In fact, most of the world’s meat is produced in Asia, which generated 140 million metric tons of meat in 2016. Pork and poultry are the most widely produced types of meat. And, with the increasing demand for meat products, demand for livestock behavior and health monitoring applications has also spiked. Within the precision livestock farming market, it is expected to have the highest CAGR during the forecast period of 2019 to 2014. Furthermore, the high growth in this segment is to be driven predominantly by the increasing adoption of hardware devices such as sensors, RFID tags & readers and livestock collars for early detection of disease in livestock. The importance of early disease detection is especially prevalent now, as the Coronavirus outbreak in China becomes a major global concern. Overall, the precision livestock farming market is estimated to be worth USD 3.0 Billion in 2019 and is expected to reach USD 4.6 Billion by 2024 while registering a CAGR of 9.2% from 2019 to 2024.
Infectious diseases spreading to livestock is a major issue for the farming industry. Eric Toner, a Senior Scientist at the Johns Hopkins Center for Health Security, explained to Business Insider that “Infectious diseases will continue to emerge and re-emerge. I think it’s part of the world we live in now… We’re in an age of epidemics because of globalization, because of encroachment on wild environments.” The new coronavirus (named “2019-nCoV”), which originated in Wuhan, China, is the most recent example of a devastating outbreak. Poorly regulated live-animal markets mixed with illegal wildlife trade provide viruses with opportunities to spill over from wildlife hosts into the human population. As a result, U.S. hog futures sank to contract lows earlier last week, because of worries about the coronavirus causing chaos in the market. “Most of the focus I think remains on an unknown impact of China’s expanding coronavirus issues,” INTL FCStone said in a note to clients according to Reuters. “We’re all aware the hog markets have long been counting on massive export business to China as our outlet for record large pork production, but now they’re seeing a sharp decline in consumerism, travel restrictions, and now even three port closings until mid-February, which heightens exporters’ anxieties further.” New modern regulations, monitoring, adoption of technologies and integrity of farmers as well as food processing companies should help manage the outbreak, reducing risk of spreading infectious diseases.
For more information, please visit: Xiangtai Food Co. Ltd.
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