March 26, 2009

China Yurun Food Group Ltd's projected expenditure for 2009 will reach HK$1.5 billion (US$193.5 million), with a large portion being set aside to expand its production capacity, the company's chairman, Zhu Yicai said Monday (Mar 23).

This year, the company plans to increase its annual slaughtering capacity from the current 18 million heads to 25 million heads. For the past few years, Yurun has rapidly expanded its operation by acquiring newly-built plants and transforming its own production facilities.

As of 2008 year-end, Yurun's annual slaughtering capacity reached 18.05 million tonnes, an increase of 4 million tonnes compared to a year earlier. Meanwhile, the company's annual processed meat products capacity stood at 258,000 tonnes, an on-year increase of 40,000 tonnes.

Zhu also predicted that China's pork prices in 2009 will fall 20 percent on the whole and it would result in lower expansion budgets for companies this year.