March 4, 2010

China's Yuhe completes construction of breeder farm

Yuhe International announced that the construction of a new breeder farm has completed, bringing its total number of breeder farms to 28, with 15 in operation today.

The new breeder farm covers an area of 20.6 acres and has capacity for 130,000 parent breeders. Yuhe anticipates adding 100,000 sets of parent breeders to the breeder farm by the end of 2010.

The remaining 13 breeder farms not in operation are currently undergoing renovations and are expected to be fully functioning by the third quarter of 2010. As previously announced in January 2010, Yuhe purchased 13 breeder farms from Weifang Dajiang Corporation for RMB103.87 million (US$15.2 million).

In addition to the new breeder farm, the company will introduce a new hatchery by the end of April 2010.

The opening of this breeder farm marks an important step in Yuhe's infrastructure expansion, said company chairman and CEO Gao Zhentao.

The new breeder farm, along with the other 13 farms are expected to come on-line in the second half of 2010, increasing Yuhe's confidence in its ability to meet its 2010 production goal of 150 million day-old broilers, said Gao.