September 2, 2008


China's Yurun aims to triple pork output by 2012

One of China's largest meat processors, Yurun Foods Group, is aiming to triple it hog slaughter capacity by 2012, in order to benefit from rising domestic pork demand.


The company wants to raise annual capacity to 50 million head with acquisitions and expansion, according to chairman Zhu Yicai. Yurun's current capacity is 18 million head per year.


Wholesale pork prices in China have nearly doubled in the past two years.


Increasing capacity will allow Yurun and other large-scale slaughterhouses to rapidly strengthen market penetration, Zhu said, adding that smaller players with low hygiene standards will be phased out.


Yurun, which posted a 71-percent jump in first-half profit this week, is planning a capital expenditure of US$218 million this year.

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