June 22, 2010

New Hope Group's feed output to reach 16-17 million tonnes

New Hope Group, the largest animal feed producer in China, said its feed output is expected to reach 16-17 million tonnes this year, up from 13 million tonnes in 2009.
The group plans to boost output to 30 million tonnes in the next two years, to take a 15% of the domestic market, Vice President Wang Hang told an agricultural forum in Beijing.
New Hope Group had a 9.3% share of the market in 2009, according to Wang.
Its listed arm Sichuan New Hope Agribusiness Co. sold 1.3 million tonnes of feed in 2009, up 15.5% from a year earlier. Sichuan New Hope said in its annual report that its overseas feed operations, particularly those in Vietnam, have been a major drive to its earnings.
The listed company's 2009 net profit rose 78.7% to RMB408.6 million (US$60 million), mainly due to higher gains from its investment in two financial firms. Its operating revenue was dragged down 6.4% to RMB6.8 billion (US$1 million) by a decline in its meat operations.
The company slaughtered about 1.7 million pigs last year, down 4.9%, while chilled meat sales fell 5.9% to 162,400 tonnes.

Sichuan New Hope said it targets an operating revenue of RMB7.7 billion (US$1.13 billion) in 2010.