August 30, 2013


China - Update on recent industry developments (week ended August 29, 2013)



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    Dingjiyang to start partial operation at Inner Mongolia goat slaughtering plant    
      CR Ng Fung to build hog slaughtering plant in Qingdao
          Wens Group invests in 1-million-head hog project in Zhangzi
          TECH-BANK imports 1,000 American breeder pigs to Anhui
  Wens Group plans to build hog breeding farm in Hunan   KYSY develops ecological production model at Liangfu hog farm





Dingjiyang to start partial operation at Inner Mongolia goat slaughtering plant    

Hulunbuir Dingjiyang Animal Husbandry Development Co., Ltd. (Dingjiyang) has invested RMB50 million (US$8.17 million) in a meat goat production facility at Inner Mongolia's Xinzuoqi grassland. Construction of an 800,000-head slaughtering plant has been completed, and operation will start soon.
The meat goat production facility, which spans 6.6 hectares, will feature four production lines with a total annual slaughtering capacity of 1.2 million goats, a 500,000-tonne freezer, a 3,000-tonne refrigerator, and a 3,000-tonne biochemical processing plant.
When fully operational, the facility is expected to generate sales revenue of RMB450 million (US$73.50 million) and rake in net profit of RMB24 million (US$3.92 million) a year. It will also provide 200 permanent jobs, and bring an additional annual income of RMB15,000 (US$2,500) to 9,000 local herdsmen.



CR Ng Fung to build hog slaughtering plant in Qingdao 

China Resources Ng Fung Limited  (CR Ng Fung), the largest food distributor in Hong Kong for 50 years, plans to build a hog slaughtering plant in Qingdao City at an investment of RMB300 million (US$48.99 million).
CR Ng Fung has sent representatives to the city for inspection of the site, and has tentatively chosen Jiaozhou as the location. However, a timetable for the development is yet to be decided. 
China Resources Ng Fung Limited, formerly known as Ng Fung Hong Limited, produces, processes, distributes, and retails meat products. The company also engages in a wide range of businesses, including marine fishing, processing, distribution of aquatic products, retail and supermarket business, beverage and food production, logistics, and import/export business.
CR Ng Fung has established farming, animal husbandry, slaughtering and food processing operations across mainland China. The company's hog slaughtering capacity has reached 11.4 million head a year, while its annual food production capacity has topped 230,000 tonnes.


Wens Group invests in 1-million-head hog project in Zhangzi                       

Wens Group has signed an agreement with Zhangzi County on a 1-million-head hog project.
According to the agreement, Wens Group will invest RMB1.2 billion (US$195.99 million) to build a 3,000-Mu hog farm in the county. When fully operational, the farm will generate annual output value of RMB1.5 billion (US$244.98 million), and provide employment to 1,500 pig farmers.
Livestock is one of the core industries in Zhangzi County, which is a major production and supply base for Shanxi province. Yurun Group and Liuhe Group have all made investment in the livestock and broiler farming projects in the county.


TECH-BANK imports 1,000 American breeder pigs to Anhui   

Anhui TECH-BANK Swine Co., Ltd., a wholly-owned subsidiary of Ningbo TECH-BANK Co., Ltd., has imported 1,000 breeder pigs from US, marking the first time that large-size breeder animals being directly imported to Anhui province.
Anhui TECH-BANK Swine Co., Ltd. has selected four breeds, which include Landrace, Yorkshire, Duroc and Pietrain pigs, from three core breeding farms of the American company - Newsham Choice Genetics. 
Ningbo TECH-BANK Co., Ltd. is a leading enterprise in agricultural industrialisation in China. The company combines the development of feed raw materials, animal disease prevention and health care, standardisation of animal culture techniques and animal original products processing. 
The company has established a research station approved by China's Ministry of Human Resources and Social Security, and received an award for the most competitive enterprise in Chinese feed industry in 2006. In April 2007, TECH-BANK was listed at Shenzhen Stock Exchange. 



KYSY develops ecological production model at Liangfu hog farm  

Ningbo Kangyuan investing Co., Ltd. (KYSY) has built an 8,000-Mu (533.33-hectare) hog farm in Liangfu County, and is carrying out an ecological project to complement the operation of hog production.
KYSY has bought a 650-Mu (43.33-hectare) plot and leased 5,000 Mu (333.33 hectares) of farmland and forest surrounding the farm, to implement the ecological development model that combines the hog production and waste treatment.
When fully operational, the Liangfu Kangyuan hog farm will produce 10,000 grandparent stock breeders, 100,000 parent stock breeders, 12,600 tonnes of organic compound fertiliser, 120,000 tonnes of feed, 2,000 tonnes of fresh fruits, and 12,000 tonnes of processed food.  
Liangfu Kangyuan hog farm exports 13,000 breeders to Zhejiang and Jiangxi province a year. It is still planning on building a 200,000-head slaughtering plant to further extend its hog production industrial chain.  



Wens Group plans to build hog breeding farm in Hunan   

Guangdong Wens Food Group Co., Ltd. (Wens Group) plans to invest a total of RMB250 million (US$40.83 million) in a hog project in Jingzhou of Hunan province.
According to the plan, the development will be divided into two phases, with an aim to construct a 20,000-head hog breeding farm. Wens Group has sent a team to Jingzhou for inspection and will choose a site for the farm.
Wens Group, one of the largest pig farming enterprises in China, operates swine, and cattle breeding farms, and supplies meat products throughout China.


* 1 hectare (10,000 sq. meters) =15 Mu
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