Food Shortage Leads to Pig Cannibalism, China’s Economy Deteriorates
A video showing pigs eating a dead pig on a farm in China recently went viral. Some of the pig farmers, working for a major Chinese financial group, said the cannibalism occurred due to feed shortages. An expert believes that the animal feed shortages are a reflection of bigger problems in the Chinese economy.
Since July 24, the video has been one of the most searched topics on Chinese social media, spotlighting the listed company and a major pig-breeding company, Jiangxi Zhengbang Tech (whose subsidiary is Jiangxi Zhengbang Breeding Co. ), who contracted the farmers to raise the pigs. Messages about the company have been circulating online, such as “farmers’ pig feed supply has been cut off”, “the president of Zhengbang has not been allowed to buy high-end products”, “the company’s fundraising was delayed” and “the company’s court ordered the total amount of compensation to reach 100 million yuan (about 14.8 million US dollars)”, etc.
That sent Zhengbang Tech’s stock tumbling 6.66% to 5.89 yuan (about $0.87) per share on July 25. The company then released several announcements in response to the issues.
On July 25, Zhengbang Tech admitted that there were pig feed supply disruptions in July, citing the drop in pig prices in June, COVID-19, the company’s funds being tight, logistical problems and coordination problems with food producers. There is no mention of compensation for pig farmers in the statement.
The company’s statements neither affirmed nor denied that swine cannibalism occurs on farms.
Bigger financial issues
Additionally, a “necessary reminder” was included in Zhengbang’s statement. He said, “The company’s net profit in the first half of 2022 is expected to decline 3.8 billion to 4.6 billion yuan (about $563 million to $682 million).” The statement heightened concerns in the outside world about the company’s “shortage of funds”.
Independent news commentator Tang Jingyuan told The Epoch Times on July 27 that there are two main reasons for Zhengbang Tech’s pig feed shortage. “One is the lack of funds, and there may even be a break in the chain of capital. The other is that the COVID-19 epidemic has caused the logistics system to be blocked, which is the problem of coordinating logistics distribution and feed mills mentioned in the company’s official statement. Behind these two reasons, the root cause is actually that the economic environment in mainland China has deteriorated due to the regime’s zero-COVID policy and measures, resulting in a vicious circle of mutual causality between the two reasons mentioned above. -above.
“The deterioration of China’s economy is largely caused by political mistakes rather than a natural disaster. Zhengbang Tech is just one of countless companies paying for it,” he said.