Zhengbang Technology, known as “the big pig breeder,” recorded a downward trend in recent days, with a 6.66% drop on the Shenzhen Stock Exchange on July 25 following the feed shortage scandal, which caused pigs to starve to death.

Zhengbang Group Co. Ltd. operates as an agricultural producer throughout China, offering services such as animal breeding, meat processing, agricultural materials supply, crop planting.

On July 23, according to the Financial Associated Press, Zhengbang Technology’s pig farms experienced supply problems. They also face difficulties settling and refunding deposits. Farmers said that 8 days after the feed was cut off, some pigs were starving to death and even pigs started eating pigs.

Li Jiang, a pig farmer, said in an interview that Zhengbang always cuts out feed, and it has become the norm to cut feed for two or three days.

On July 3, Tears in the Snow released a video on social media that soon became viral. The video showed the pigs raised by Zhengbang Technology’s representative households were hungry and ate each other after 8 days of starvation. Afterward, the videos were censored and deleted as the local government tried to negotiate with the company to help solve the problem.

Yuan Fuchang, the financial director of a branch of Zhengbang Technology, tried to minimize what happened and calm the public rage. He said in an interview that pigs eating pigs was due to a shortage of supplies, as the company’s funds were tight, and there was no way to provide feed.

After the feed supply of Zhengbang Technology was interrupted, pig farmers were reluctant to advance the purchase of feed.

Wang Wei, a farmer, said that after he made the advance, Zhengbang took a group of pigs away and then said nothing. He raised pigs for half a month, the company didn’t send any feed or medicine, and no one cared if the pigs died in the pigsty.

Households are gradually withdrawing from surrogacy promotion cooperation due to concerns about Zhengbang Technology’s capital chain. However, the withdrawal process is not easy, and the settlement and refund of the deposit have become burdensome problems.

Lu Juan 卢娟, a farmer in Linfen, Shanxi Province, told reporters that she still hasn’t been paid after finishing the breeding, and the deposit of 60,000 yuan (8,882 dollars) has not been refunded. She wants to file a lawsuit against Zhengbang Technology.

Under the difficulty of settlement and refund of deposits, many farmers risked their lives when deciding to sell their pigs despite economic disputes.

A farmer in Hunan said that several households went to Zhengbang to ask for money but didn’t get anything. He had to sell 600 pigs.

Another farmer told the Cailian News Agency reporter, ‘There is no way to cut off the feed. The deposit may not be refunded. I sold some of the pigs first.’

The recent financial data of Zhengbang Technology show the company’s losses and inefficiencies. Data indicates that Zhengbang Technology lost 19.115 billion yuan (2.8 billion dollars) in 2021.

And the economic slump continues. In the first quarter of 2022, Zhengbang Technology lost 2.664 billion yuan (385 million dollars).

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