Animal feed and pork company AgFeed Industries Inc posted a 69% drop in its quarterly earnings, hurt by a fall in pig prices, and rising cost of corn, soy and fuel.
Net income attributed to AgFeed in the second quarter was $1.2 million compared with $3.9 million a year ago. Revenue was up about 8% to $38.5 million.
The company, however, said pig prices were generally beginning to firm.
“I believe we will see these (pig) prices rise about 15% in the short run and over 25% by 2010 from recent lows,” Chairman Songyan Li said in a statement.
The company expects to produce about 2.5 million pigs from now through 2011.