November 30, 2007

Chia Tai invests RMB300 million in Sichuan hog farm

Chengdu Chia Tai Company, a subsidiary of Thailand's Charoen Pokphand Group, will invest RMB300 million in a new hog farm in Pengzhou, located in the south-western Chinese province of Sichuan.

Pengzhou Kanglu Company is Chia Tai's joint-venture partner in this project. Both parties signed the agreement on Wednesday (Nov 28).

Occupying an area of 20 hectare, the integrated farm will be able to handle 3,000 heads of hog per day and processed pork products will be supplied to retail supermarkets in Chengdu and other cities in Sichuan province.

Selected farmers in the vicinity of Pengzhou will also benefit from the project. Chia Tai and Kanglu plan to build standard farms that can accommodate 500 heads of hog each, and these farms will supply hogs on a contractual basis. Initial cost of supply pure breed pigs, feeding cost and insurance will be borne by the company.

RMB1=US$0.1355 (Nov 30)