Chinese integrated meat processor China Yurun Food Group has encountered a drop of 10.1 per cent of the Group's gross profits. The company said the decrease was mainly due to the significant increase in raw material costs, in particular hog prices, together with weakened market confidence in the group's products and the increasing difficulty in transferring the group's increased operation costs to its customers. The decrease has also been attributed to product promotion activities conducted by the group in the fourth quarter of 2011, which were targeted at retaining market share.

The Group will nonetheless continue to expand its capacity, accelerate the enhancement of its nationwide production capacity in the coming years, so as to further strengthen its leading position in the industry and capture the tremendous business opportunities in both upstream and downstream markets.

http://www.thepigsite.com/swinenews/29165/yurun-group-sees-profits-down