June 18, 2013
China - Update on recent industry developments (week ended June 7, 2013)
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Heilongjiang builds new feed processing plant
Qitaihe City in Heilongjiang is building a feed processing plant with an annual capacity of 400,000 tonnes of feed.
The plant will have two production lines, with a mix of local and imported equipment. When fully optional, it is expected to generate RMB620 million (US$101.07 million) in sales revenue, and pay a total of RMB53 million (US$8.64 million) in taxes.
Total investment for the feed plant, which spans five hectares, including two hectares for production and storage, will reach RMB80 million (US$13.05 million).
Qitaihe Livestock Breeding Farm is in charge of the project. The farm has 170,000 Mu (11,333.33 hectares) of farmland, which produces 50,000 tonnes of crops a year, with corn, soy and rice being the majority; corn makes up three quarters of the total production. It also features a cattle dairy farm that produces the largest volume of milk in Heilongjiang.
Currently, Qitaihe Livestock Breeding Farm has 296,000 live pigs, 47,000 cattle, 20,100 goats, and 3.32 million poultry. It plans to increase inventories of cattle to 10,000, layers to 350,000, and pigs to 100,000 respectively in three years. Combined with the 13 cities and counties surrounding Qitaihe, it is a huge consumption market for feed.
Binxi Cattle Industry acquires New Zealand Angus cattle breeding farm
Heilongjiang Binxi Cattle Industry Co., Ltd. (Binxi), the largest cattle slaughtering and beef processing enterprise in the province, has signed an agreement with New Zealand Anzike Animal Husbandry Co. Ltd. (Anzike) to acquire one of its Angus cattle breeding farm for RMB50 million (US$8.15 million).
With this first ever acquisition of an overseas cattle farm by a Chinese beef production enterprise, the breeding farm will supply about 1,000 Angus cattle to China every year.
Binxi built a breeder cattle demonstration farm with a RMB150 million investment in 2012, in an effort to meet the increasing demand for premium beef products in the Chinese market, and raise the bar for beef cattle farming.
Binxi has chosen Angus breed as the major breeder cattle at the demonstration farm, and plans to raise the number of Angus cattle to 30,000 within five years, in order to reach its goal of 100,000 heads within 10 years, by when it will become the largest Angus cattle breeding farm in China.
Anzike is the second largest livestock exporter in New Zealand, and a world leader in Angus cattle breeding.
Guangping County builds industrial park for poultry and egg production
Guangping County in Handan City is building an industrial park focused on poultry and egg production in the county's north. A dozen projects are currently under development in the area, including Aibao Foods' RMB600 million (US$97.76 million) investment, Guangzhou Guangxing Poultry Equipment Co., Ltd's RMB1.2 billion (US$195.57 million) investment project, Hebei Jinjibao Ise Egg product Co., Ltd. and others.
According to Guangping County party sectary Li Zengliang, the industrial park has already attracted 22 different investment projects, worth a total of RMB5 billion (US$814.69 million). To date, development for 12 projects are underway, at a total cost of RMB3 billion (US$488.81 million).
Hebei Tonghe Biological Products Co., Ltd (Tonghe) set the foundation for the industrial park. Its RMB300 million (US$48.89 million) facility began operating in November 2011. Tonghe processes 7,000 tonnes of egg powder and produces 200 million cleaned eggs a year with production equipment imported from France and Japan, which not only filled the void in the egg processing industry and started an era of cleaned eggs in Hebei, but also drove the development for related industries including layer farming, feed processing, packaging, and logistics in the county.
Tonghe advocates the "ten-in-one" programme, which combines operations of chick import, feed supply, animal health, medicine supply, standardised production, product sales, elimination of old chickens, healthy brands, environment protection and insured settlement. More than 400 farmers have joined the programme, with a collective inventory of 550,000 layers.
Using Tonghe's development in the area as a springboard, Guangping County government initiated the industrial park project, and provides preferential policies in the areas of funding, manpower and land resource allocations, as well as incentives for use of water, electricity and traffic.
Tiansen Food Processing to produce three million cleaned eggs annually
Hubei Tiansen Food Processing Co., Ltd., located in Shiyan City's Fang County, has bought a fully automatic egg grading machine for RMB1 million (US$162,908.37), which is able to select 20,000 high-quality fresh eggs in an hour, and produce three million cleaned eggs a year.
The machine is made by Shenzhen Zhenye Egg Machinery Co., Ltd. Eggs graded by the machine can last 20 days longer than regular eggs, and are worth an additional RMB0.15 to RMB0.3 (US$0.02 to US$0.04) each.
Tiansen is the only enterprise with cleaned egg production in Shiyan City. It has signed a supply contract with Shiyan New Cooperative Supermarket, and has been providing cleaned eggs for schools in the city to make students' meals.
According to the head of Shiyan Animal Husbandry and Veterinary Bureau Li Kui, Fang County had an inventory of 4.1 million chickens last year, and produces 20,300 tonnes of eggs a year.
Tianhong Fishery builds largest extruded feed production line in Hunan
Yiyang Datonghu Tianhong Fishery Co., Ltd. (Tianhong) has invested RMB80 million (US$13.04 million) in an automated extruded feed production line with an annual capacity between 100,000 tonnes and 120,000 tonnes, which is one of the largest in Hunan.
The production line is in the forefront of its kind in the nation. It will enable Tianhong to promote the development of intensified aquaculture production, reduce the production cost and pollution, and ensure the safety of aquatic food products.
Extruded feed has a higher conversion rate, and produces less pollution and waste in the production process.
Sanjiang A Power builds beef cutting plant in Huangyuan
Construction for Qinghai Sanjiang A Power Agriculture Co., Ltd.'s (Sanjiang A Power) beef cutting plant, which boasts an annual capacity of 20,000 tonnes of premium beef, has started in Huangyuan.
Sanjiang A Power invested a total of RMB25 million (US$4.08 million) in the beef cutting plant, which spans 45 Mu (3 hectares) of land. Construction will be divided into two phases, with the first costing a RMB13 million (US$2.12 million) investment and the second a RMB12 million (US$1.96 million) investment.
When fully operational, the plant will generate RMB860 million (US$140.19 million) in sales revenue, and provide 3,000 jobs.
* 1 hectare (10,000 sq. meters) ï¼15 Mu
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