CP Group: Pork Prices to Remain High Until Year-End, Second-Quarter Profits Expected to Improve

(Taipei, June 15 — Reporter He Xiu-Ling) CP Group Chairman Zheng Wu-Yue stated that the company's first-quarter performance fell short of expectations due to the U.S.-Iran conflict and other geopolitical factors. However, with pork prices rebounding to the NT$90–100 per kilogram range, second-quarter profits are expected to improve. Although full-year operations may not match last year's level, the company maintains a cautiously optimistic outlook, supported by rising pork prices and improved feed profitability.

CP Group held its earnings briefing today. First-quarter revenue reached NT$7.176 billion, a 7.2% year-on-year increase. Net profit attributable to parent company shareholders was NT$373 million, down 46.7% from the same period last year, with earnings per share at NT$1.26. Zheng attributed the weaker profit to rising freight and raw material costs caused by the U.S.-Iran and Russia-Ukraine wars.

Regarding the pig farming business, CP Group spokesperson Liu Ming-Zhe noted that domestic African swine fever outbreaks in Taiwan last October led to temporary bans on pig transportation and slaughter. Subsequent market releases caused pork prices to drop, averaging NT$75–80 per kilogram in January and February. With the oversupply cleared, prices began recovering in May and have returned to the NT$90–100 range. Due to poor piglet survival rates, this price level is expected to persist until year-end, supporting CP Group's profitability. The second quarter is anticipated to outperform the first.

On the poultry side, Liu stated that current broiler farmgate prices are around NT$34.3–35 per kilogram, slightly better than last year. However, domestic chicken supply still exceeds demand, with weekly slaughter volumes reaching about 6 million birds—above the healthy demand level of 5.2 million. This oversupply makes further price increases difficult, requiring time for the poultry supply chain to rebalance.

For bulk commodities and feed, Zheng noted that early-year concerns over war-related supply chain disruptions prompted increased corn and raw material imports, leading to higher-than-normal inventory levels. Rising freight costs and intensified competition among peers for customers and pricing have pressured feed business margins. However, a feed price increase of NT$0.4 per kilogram, announced in March and effective in April, has gradually improved profitability.

Additionally, CP Group's newly constructed pork cutting facility received its operating permit in May and will begin trial operations between June and July. The company plans to apply for CAS and HACCP certifications. If certification progresses smoothly, mass production could commence as early as March next year. (Edited by Yang Lan-Xuan) 1150615