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Once Again China’s Pig Farmers Are Mired in Boom-Bust Cycle

  • Major breeder Zhengbang reports overdue debt after big losses
  • Producer ramped up aggressively at wrong time, analyst says
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Once every three to four years, hog farmers in the world’s largest producing country find themselves trapped in an unforgiving market that pushes some over-leveraged breeders to the brink of a debt crisis. 

Jiangxi Zhengbang Technology Co., the second-largest hog supplier among Chinese listed companies in 2020, just reported 542 million yuan ($81 million) of overdue commercial bills, becoming the latest producer to show the financial stress of the boom-bust cycle. The nonpayment comes after it lost about three billion dollars since the start of last year as local hog prices halved.