December 18, 2008


China - Update on recent industry developments (week ended Dec 18, 2008)



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        China's biggest starch sugar manufacturing plant starts operations in Jinzhou, Liaoning
            Liaoning's Rizhao to have new frozen meat processing plant
            Thailand-based Chia Tai Group sets up pig breeding facility in Yancheng City, Jiangsu
            Henan's chicken exports grow despite weak market



Growth in Henan's edible oil investment

Kaifeng Bao Food, located in Henan's Kaifeng City, is planning to invest RMB0.15billion to start a peanut oil production line with an annual capacity of 0.2 million tonnes.

In November, besides Kaifeng Bao Food's investment, Henan's Aichu Vegetable Oil Company also invested RMB0.1 billion ; Henan Xinghe Fat Company invested 0.1 billion; Jiaozuo City Shiyi Vegetable Oil Company invested RMB0.2 billion- edible oil companies are actively investing in operations. 

During the month of November, Henan saw ten over manufacturing plants investing over  RMB 1 billion to build new production lines, including lines to make soy oil, peanut oil, sesame oil, cottonseed oil, and rapeseed oil. Henan's edible oil capacity will record over 1.1 million tonnes, achieving 70 percent increase in production from 2007.



China's biggest starch sugar manufacturing plant starts operations in Jinzhou, Liaoning

Jinzhou Dacheng Food Development, a subsidiary of Hong Kong's Global Sweeteners Holdings Limited, has an annual starch sugar capacity of 0.2 million tonnes. It started operations in Binhai New Area, Liaoning on September 21, investing RMB0.24 billion. Its four main products are malt sugar, high malt sugar, isomaltosa and glucose, spanning over 40 varieties.

The plant uses 100 thousands tonnes of corn flour supplied solely by Yuancheng Biochemical Technology Company. The higher value of corn by-products and an increase in demand of raw materials have lifted corn production in Jinzhou and it surrounding areas. , Jinzhou's corn facilities have flourished as the value of corn and the demand for corn supplies climb.



Liaoning's Rizhao to have new frozen meat processing plant

China Resources Enterprise Limited's subsidiary Ng Fung Hong signed an agreement with Rizhao Fuyuan Food Company on Dec 9 in Rizhao City, Liaoning province. The two companies are partnering on a joint venture to process meat. According to the agreement, Ng Fung Hong owns 70 percent of the shares, while Rizhao Fuyuan Food Company owns the other 30 percent. The joint venture will engage in mainly live pig purchases, pig slaughtering, meat processing and distribution, as well as fresh meat retail business.
The joint venture will operate a manufacturing chain covering purchasing, slaughtering and processing to boost distribution of red and white meat. It aims to become a leader in the distribution of fresh frozen meat in Lunan which has become a regional hub for frozen meat supplies.


Thailand-based Chia Tai Group sets up pig breeding facility in Yancheng City, Jiangsu

Thailand's Chia Tai Group's Jiangsu Taihe Animal Husbandry Company held a signing ceremony at Jiangsu's Yancheng city recently. The project invested a total of RMB70 million, taking up 200 hectares of land with the first stage of construction expenditure reaching up to RMB50 million. Upon completion, it boasts an annual capacity of 1,200 heads of good-quality breed pigs, and a breeding facility producing 4000 piglets a year. The second stage investment is RMB20 million would be for production of tens of thousands of commercial pigs annually.



Henan's chicken exports grow despite weak market

Despite the global credit crunch and Japan's trade restriction on China's agricultural products, Henan province's chicken exports in November continued to grow, with volume up by 16 percent over October to 691.3 tonnes. Henan's processed chicken export to Japan totalled 0.55 million chickens for the month of November. 
The growth of Henan's chicken exports to Japan is attributed to the fact that apart from the traditional cooked chicken, Henan increased the exports of new types of products that package together chicken and vegetables, such as barbequed chicken with vegetables, in line with the new consumption trend on the Japanese market.



Guangdong aims for 75 percent pork self-sufficiency by 2012

Guangdong's animal husbandry veterinarian bureau head Luo Daoxuu said that pig farming is very important to Guangdong and that animal raisers should not give up lightly. Currently, Guangdong relies 40 percent of its live hog requirements other provinces. With supplies from other provinces tightening and local supplies unable to make up for the shortage, he expressed concerns of stable supply of live hogs.

In accordance to a Guangdong's 2006 to 2012 plan, live pig production will increase from 36.3 million to 45.7 million heads, registering an average annual increase of 1.56 million. By 2012, Guangdong should achieve pork self-sufficiency rate of 75 percent and 85 percent self-sufficiency by 2020. To achieve this goal, Guangdong has planned for four live hogs farming belts including belts in the east, west, north, and the rural central region.


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