July 29, 2010

Rongfu Aquaculture touts Hangzhou sales centre a success

Rongfu Aquaculture Inc (RNFU), the Fushan, Guangdong-headquartered freshwater aquaculture company announced Wednesday (Jul 28) that its newly established sales centre in Hangzhou, Zhejiang province has shown remarkable revenue growth and solid profitability to date.

One of the leading freshwater fish dealers in China, the company cultivates mostly tilapia and snakehead and operates 13 adult fish breeding farms.

RNFU Chairman Chen Zhisheng commented on the strong revenue growth in just two months, which shows more than US$600,000 in sales since its opening in May. The new sales centre occupies space in what is the biggest wholesale fish market in China.

Such strategic position has allowed streamlined penetration into other markets, where its farmed snakehead is in high demand in and around the Hangzhou region, Chen said.

RNFU also plans to open new sales centers in Wuhan, Hubei province, and Wansha wholesale market near Guangzhou, Guangdong, due to both regional growth and high demand, he added.

The company farms fish in man-made ponds using oxygenation/aeration systems and in fresh filtered local waters, as well as artificial lakes on land leased from villages, focusing mainly on adult snakehead operations in Guangdong. The company has a fry (juvenile fish) farm in Wenchang, Hainan for breeding tilapia.

Rongfu is currently the largest seller of tilapia fry in China, and is one of the top three sellers of adult tilapia, with roughly 74% of its revenue last year deriving from the sale of adult fish and 12.3% from frys. Farmer-purchased adult fish which was re-sold into the market via the company's venues contributed to 13.7% of its sales.