May 23, 2008

China's Yurun to boost production in 2008

One of China's largest process meat processors, Yurun Foods Group, plans to invest RMB1.7 billion to raise its production capacity this year.

At its annual shareholders' meeting held on Wednesday (May 21), company chairman Zhu Yicai said that hog slaughtering would be increased by 4 million heads per year and production of downstream products is expected to rise by 60,000 tonnes.

On China's hog price trend, Zhu is of the view that prices are not likely to fall significantly. Tightness in pork supplies are expected to ease in the near term.

Meanwhile, Zhu also mentioned that Yurun's plant in Dujiangyan had resumed production on May 16. The other two plants in Guangyuan and Neijiang were not affected by the earthquake. Overall, the Sichuan quake will not impact significantly on the company production and bottomline.

With sales recording double-digit growths in the first four months of this year, the Hong Kong-listed company said it is optimistic about its financial performance in the next two years. 

RMB1=US$0.1440 (May 23)