November 21, 2019


Big Dutchman, Charoen Pokphand Group sign two layer projects in China


Big Dutchman and Charoen Pokphand Group (CP) have recently signed a contract for two three-million Chinese layer farm projects located in the Chongming district, Shanghai, China, and in the Dongchuan district, Kunming, respectively, with a total investment of ¥1.3 billion (US$185 million), Big Dutchman announced this month.

Through this cooperation, the two companies will jointly set new standards for layer farms in China. The globally sourced equipment to be installed at the two farms is state-of-the-art, from feeding, water supply, climate and production control to egg sorting. Each house is fully automated and computer-controlled. This will be the second and third large-scale project that CP and Big Dutchman undertake together.

"We would like to express our sincere gratitude to CP for the long-term trust and recognition. We will seize the opportunity to provide the most advanced economic and environmental solutions to help the customer achieve higher output and international development, and fulfill its tenet of "benefit to the country, benefit to the people, and benefit to the enterprise," said Walter Benz, president and managing director of Big Dutchman China.

The project is located in the town of Xincun, Chongming, covering an area of 651.5 m2, with a total investment of ¥751 million (US$106.7 million). It consists of four independent areas: a 135m2 large rearing farm with 850,000 bird places for day-old chicks and pullets; a 392m2 large layer farm for three million layers, into which the young hens are moved batch by batch; a crocodile farm covering an area of 30m2 - for the sake of sustainability the reptiles will dispose of the carcasses; and an organic fertiliser plant covering an area of 94.5m2 is used to produce organic fertiliser from manure.

Construction started in June 2019 and is expected to be completed by the end of 2020. The first batch of eggs produced will reach the market by mid-2021.

With an annual output of 800 million eggs, the Chongming farm is supposed to account for 30-40% of the market share of branded eggs in Shanghai. It will become the largest layer farm in Asia and the most modernised and automated egg production project in the world.

The second project is located in the town of Dongchuan, Kunming, in the province of Yunnan. Its investment in fixed assets is about ¥600 million (US$85.2 million). It is based on integrated business planning and will be constructed in phases over two years. The operation covers an area of 1,570m2, including a feed mill with an annual output of 120,000 tonnes; a pullet farm with one million bird places; a three-million layer farm with egg grading, packing and deep processing; a farm for 3,000 crocodiles; and an organic fertiliser plant with an annual output of 60,000 tonnes.

The project will adopt a closed ecological system that covers the whole industry chain. It is a demonstration project aimed at reducing environmental pollution and transforming not only livestock production, but also at positively impacting on the agricultural sector in Dongchuan county and the entire Yunnan province.

The project's significance lies in its potential to enhance the progress of agricultural industrialisation and supply side reform in Yunnan, Big Dutchman said.

- Big Dutchman