June 18, 2019

Cargill opens US$48.8 million protein production plant in Chuzhou, China


Cargill is expanding its protein production capacity in Chuzhou, Anhui, China, with an investment of US$48.8 million in a production plant to provide new products to customers and consumers.

According to Cargill, the facility will contribute to "farmer prosperity" and the growth of the local economy, bringing 600 new jobs to the area. The investment further highlights Cargill's commitment to market growth in China, as it follows the company's April 2019 US$112 million investment to expand its deep corn production plant in Songyuan.

Wenping Yang, the mayor of Lai'an County Government said: "Lai'an County of Chuzhou City is a National Export of Poultry Model Base, as well as a National Export Quality and Safety Model District. Currently, Cargill Animal Protein China is the largest agriculture enterprise in Lai'an, which has brought plentiful employment, in the meantime, helped build and improve the local systems of animal welfare and food safety."

During the meeting with Marcel Smits, chairman of Cargill Asia Pacific and head of corporate strategy, following the plant opening ceremony on June 18, Xiang'an Zhang, secretary of Chuzhou Municipal Party Committee said: "Chuzhou possesses abundant natural resources, unique location for convenient transport and great potential for economic growth. Cargill contributes much in terms of employment and financial investment in the local community. The contribution is significant to agricultural structure, economic development and community prosperity. We welcome enterprises like Cargill to continue their investment and business development to grow together with Chuzhou. And we wish a better development for Cargill in Chuzhou."

Cargill's integrated poultry production facility in Chuzhou covers every stage of the poultry supply chain, including chicken breeding, raising, feed production, hatching, primary and further production.  With this integrated supply chain, Cargill has full control over food quality and safety. Any product from the facility can be traced back at any point in its production process within two hours.

The facility is equipped with two fully cooked protein production lines that will be able to produce 32,000 tonnes of chicken and other protein products every year. Through globally advanced production equipment and technology, the new facility will increase the production speed up to 30%, enabling Cargill's protein business to better meet the needs of domestic customers. Simultaneously, it will have the ability to export cooked protein to global customers.

"Cargill is a friend of China and we are committed to developing the Chinese economy and the economies of local communities. This new investment will help Chuzhou and local farmers prosper as they work with us to deliver protein to tables of the world," said Smits.

"Our commitment to China is demonstrated not only through our 40-year presence, but also by Cargill's business announcements this year, including the opening of a Cargill Beauty APAC lab in Shanghai, a Yichun animal nutrition plant, the corn production facility in Songyuan, and now, Chuzhou."

In China, chicken consumption has maintained long-term and stable growth, Cargill said. Data from the Statistics Bureau showed the annual per capita consumption of poultry in China's cities increased from 1.0kg in 1978 to 9.7kg in 2017.

Currently, chicken is the second largest consumed meat in China, accounting for 15% of total meat production with a huge potential for growth.

Jackson Chan, managing director of Cargill Animal Protein in China, commented: "Chinese customers and consumers are critical to our protein business, as China has the largest protein market in the world. With this expansion, Cargill will be able to offer more unique and differentiated culinary options, menu solutions and innovative new products to our customers and consumers."

- Cargill