Cost ManagementWith softening feed costs and ongoing efficiency gains, COFCO Joycome should be able to limit hog production cost to less than RMB16/kg by end-2023 and around RMB15/kg in one to two years.
Market ExpansionThe company is well poised to grow its downstream business, targeting RMB10 billion in revenue from the segment by 2025.
Operational EfficiencyThe recent facility upgrades, including the installation of air filtration systems, and implementation of successful farm management practices, should enable underperforming hog farms to gradually close the gap with the leading farms.