December 6, 2013

 

China - Update on recent industry developments (week ended Dec 5, 2013)

 

 

Note: Click on story title on map to read contents
 
 

         
      Northeast China's largest pig semen supply centre commissioned in Linghai City
         
          Twins Group to invest in pig feed plant in Gaotang County
          New Hope Liuhe to build hog farming base in Dongping County
          Herun Group builds largest grain and oil processing facility in Eastern China
       
New Hope Group partners Synlait to sell infant formula in China   Dayou builds ecological hog farming base in Shishou City  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                
          

Northeast China's largest pig semen supply centre commissioned in Linghai City 

             
Linghai municipal government has built a pig semen supply centre - the largest of its kind in the northeastern region of China - which has started operation at the city's Qiuping Farming Cooperatives.  
 
At a total investment of RMB0.26 million (US$42,681), the pig semen supply centre spans 20 Mu (1.33 hectares). The centre offers semen from Duroc, Large White and Yorkshire breeds, and features veterinarian service, insemination, evaluation laboratories and distribution service.
 
The centre is capable of delivering 300,000 doses of pig semen, sufficient to meet the demand in the Liaoxi region (Western Liaoning).         

               
              

Twins Group to invest in pig feed plant in Gaotang County
 
   
                   
Jiangxi Twins Group Co., Ltd. (Twins Group) and Gaotang County government have signed an agreement on a feed plant project.
 
According to the agreement, Twins Group will build a pig feed manufacturing plant in Gaotang County, while the county government will provide preferential policies to the company to ensure the smooth development of the project. Twins Group and Gaotang Li Ang Agriculture and Animal Husbandry Development Co., Ltd. will jointly manage the operation of the plant.
 
When fully operational, the plant will be capable of producing 420,000 tonnes of pig feed annually.
 
Animal husbandry is one the three pillar industries in Gaotang County's agricultural sector.

                     
                    
New Hope Liuhe to build hog farming base in Dongping County 

   
                  
New Hope Liuhe Co., Ltd. (New Hope Liuhe), a subsidiary of New Hope Group, has signed an agreement with Dongping County government to build a 1-million-head hog farming base. 
 
According to the agreement, New Hope Liuhe will invest a total of RMB2 billion (US$328.25 million) to construct a 7,000-Mu (466,67-hectare) hog farming base in Dongping County of Shandong Province, including breeder farms, boar breeding farms and commercial pig farms, slaughtering and processing plants, as well as other auxiliary facilities.
 
When fully operational, the farming base is expected to produce one million high-quality pigs per year and generate an annual output value of RMB1.8 billion (US$295.53 million). The project will also benefit 1,000 hog farmers, whose combined annual income is estimated to increase by RMB120 million (US$19.70 million).

              
Herun Group builds largest grain and oil processing facility in Eastern China 

           
Zhejiang Herun Group Co., Ltd. (Herun Group) plans to invest a total of RMB19 billion (US$3.12 billion) to build a grain and oil processing industrial park in Yangzhong City of Jiangsu Province.
 
Spanning 5,700 Mu (380 hectares), the Herun Grain and Oil Processing Industrial Park is slated to become the largest of its kind in Eastern China. When fully operational, the park is expected to generate sales revenue of RMB100 billion (US$16.41 billion) per year.
 
At an investment of RMB2.87 billion (US$471.10 million), Herun Group has started phase one of the project with a goal to set up two subsidiaries: Jiangsu Zhonghai Grain and Oil Industry Co., Ltd. and Jiangsu Runhua Logistics Co., Ltd..
 
When operational, Jiangsu Zhonghai Grain and Oil Industry Co., Ltd. will be engaged in oilseeds processing, refined oil extraction, feed manufacturing and oil storage; while Jiangsu Runhua Logistics Co., Ltd. is expected to handle an annual throughput of 7.96 million tonnes of grain. 

Link9


               
         

Dayou builds ecological hog farming base in Shishou City 

            
Hunan Dayou Breeding Co., Ltd. (Dayou) plans to invest a total of RMB750 million (US$123.17 million) to develop a 500,000-head ecological hog farming base in Shishou City.
 
Dayou has set up a subsidiary - Houfa Breeding Co., Ltd., with a registered capital of RMB5 million (US$0.82 million) to manage the operation.
 
Construction of the farm is divided into five phases. Phase one includes the construction of a 100,000-head hog farm and fish ponds with an aggregate acreage of 6,000 Mu (400 hectares).
 
At an initial investment of RMB153 million (US$25.11 million), phase one started in October this year and is expected to be completed by September 2014. When phase one is completed, Dayou expects the farm to produce 100,000 hogs in 2015, and generate an annual output value of RMB180 million (US$29.56 million). The company also expects the fish production to reach 2,000 tonnes and generate an annual output value of RMB20 million (US$3.28 million).
 
When the farming base is fully operational, the hog production capacity is expected to reach 500,000 head per year, while the annual output value is estimated to total RMB1 billion (US$164.20 million). 
 
Dayou is an integrated hog production enterprise. The company mainly engages in the breeding and farming of pigs, as well as manufacturing and processing of feed.

Link11


           

          

New Hope Group partners Synlait to sell infant formula in China    

      
   
New Hope Group has signed an agreement with New Zealand's dairy company Synlait to sell infant formula in China.
 
According to the agreement, New Hope Group's subsidiary, Sichuan New Hope Nutritional Products Co., Ltd., will be in charge of the marketing and sale of the infant milk under the Chinese brand name "Airuijia"; while Synlait will be in charge of the development and production of the milk products. 
 
Airuijia brand is mainly targeted at infants aged between 0 and 3 years old. The first batch of the Airuijia products is expected to hit the shelves at Chinese supermarkets in January 2014. 
 
In March 2013, CEO of New Hope Group, Liu Yonghao said that Hong Kong government's order to restrict the sale of infant formula to mainland tourists was a wake-up call. The fact that Chinese consumers flocked to Hong Kong to buy milk powder proved that Chinese consumers lacked confidence in domestic brands, and presented a challenge to the Chinese dairy companies.
 
In 2002, New Hope Group entered the dairy business and formed the unit New Hope Dairy. In 2008, the company attempted to promote its own infant formula products. However, the melamine-tainted baby milk powder shattered the confidence in Chinese consumers, and slashed sales of domestically made infant formula in the following years. New Hope Group eventually halted the production of its infant milk products in 2012.
                   


                                                                                         

                 
* 1 hectare (10,000 sq. meters) =15 Mu
            
eFeedLink publishes weekly and monthly exclusive market reports on China livestock and feed market in various titles. We can also customise market studies or conduct one-time market consultation to meet your specific information needs. Contact us at: marketing@efeedlink.com.
 
Copyright © 2013 eFeedLink Pte Ltd. All information in this report is the exclusive property of eFeedLink. Neither this publication nor any part of it may be reproduced in any means without prior consent.