May 28, 2014
 

Genus and pork producer Yunnan Shennong call off joint venture

Animal genetics company Genus and Chinese pork processor Yunnan Shennong Agricultural Group Co. Ltd. has decided not to proceed with a previously announced joint venture due to harsh market conditions.

The partnership, first announced on 25 February 2013, would have seen the FTSE 250-listed animal genetics company and the integrated pork processor in the Yunnan province of China build and operate a 1,000-sow nucleus farm to support Shennong's expansion of its pig production operation.

Genus said in a press release that the companies decided not to proceed with the JV due to the "current adverse market conditions for pig production in China". No investment had yet been made by either party in the joint venture as land on which to build the farm took time to identify. Shennong and Genus will continue to discuss future collaboration opportunities as market conditions in China develop.