September 26, 2011

 

Alltech to achieve US$1 billion revenue in China

 

 

By 2015, Alltech will achieve annual revenue of US$1 billion in China and make a contribution to the nation's pork production, Pearse Lyons, Alltech Inc.'s founder and president said.

 

He said he would love China to be their single-most important market, because there are 1.3 billion people and their consumption capabilities are strong.

 

The company's focus is on improving animal performance and growth, digestion, and reproduction by offering yeast-based, natural nutritional products.

 

An estimated 600 million pigs are consumed annually in China, and most are currently raised on traditional feeds without additives.

 

According to Rabobank Group, the gap between pork supply and demand could be between 2-2.5 million tonnes in 2012. This year, 1.1-1.4 million tonnes of pork and pork offal will be imported, at least 25% more than in 2010.

 

According to Lyons, the company has been growing at 20% on-year for three decades and expects global revenue totalling US$700 million this year, 10% of it from China.

 

He also said that they target US$4 billion by 2015, US$1 billion in China.

 

Alltech entered China in the 1980s and it business here has been growing by 20% on-year. It will invest US$9.5 million this year in its facility in Tianjin. The plant produces natural minerals and proteins for feed with a total output capacity of 30,000 tonnes every year.

 

Lyons said that the company's nutritional products help increase the reproduction of the animals. He said in pig raising, US$10 worth of Alltech products can yield three more pigs, worth US$45.

 

Alltech is worth US$2 billion, Lyons said, because of its profitability and business performance. But, he said, it will never go public so it can keep its corporate strategy independent.

 

He also said that they use reinvestment to expand their businesses and over the next three years, they will reinvest US$400 million globally and maybe 20% will go to China.