April 17, 2008

China's South Group sets up hog farm in Chongqing

In a ceremony held on Tuesday (Apr 15), representatives from Chongqing's South Gold Valley Agri-Husbandry Company (SGV) and Bloomington, Illinois-based Ag-World Inc signed an agreement which will see the latter supplying purebred hogs to SGV in a one-off business deal.

According to Long Xiaohai, chief veterinarian of SGV, 1,230 heads of purebred hogs will be flown from Chicago to Chongqing in July. These Ag-World purebred hog stocks will be inspected by SGV officers in a quarantined area before they are released for production purposes.

Total investment for this project will cost SGV some RMB2.28 billion. By 2012, the farm's commercial hog production capacity will reach one million head per year and is expected to bring in RMB5 billion in revenue for the company.

SGV is majority-owned by the South Group Co. Ltd, a major conglomerate with its headquarter in Chongqing.

RMB1=US$0.1430 (Apr 17)