June 28, 2010

Fujian Sunner incurs US$4.4 million losses on heavy rain

The heavy rain hitting south China since mid-June caused an economic loss of about RMB30 million (US$4.4 million) to poultry integrator Fujian Sunner Development Co.

The company, based in Guangze county in southeast Fujian province, had seen several broiler farms drowned in the rainstorm, with some farms, as well as feedmills and chicken processing plants, affected by a transport and power shut-off.

Sunner said it had fully insured all its operations and is claiming the loss to insurers.

Fujian Sunner, a core supplier for KFC China, reported first-quarter net profit of RMB25.8 million (US$3.8 million), up 14% from a year earlier.

According to the Ministry of Civil Affairs, the heavy rain in 10 provinces, including Fujian, Jiangxi and Hunan, had caused economic loss of RMB43.3 billion (US$6.4 billion) as of June 23.