Cargill opens Poultry production base in Lai’an ,Anhui province, China
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Cargill opens Poultry production base in Lai’an ,Anhui province, China

Posted by | December 2, 2013 |

Cargill held the inauguration ceremony of its world-class integrated poultry operation in Lai’an Anhui today. This project initiated in 2009, is a part of Cargill’s continuous effort to support the modernization of agriculture and food safety in China and the total investment is approximately US$250 million.

The fully-integrated project covers each stage of the poultry supply chain, including chicken breeding, raising, feed production, hatching, slaughtering and processing, which has the capacity to process approximately 65 million chickens per year, as well as 176,000 metric tonnes poultry products per year.

And in a much closer race Cargill, Tyson American also has established his own base in Lvxian, Shandong since 2012, have the capacity of 3.6 million broiler per year. And Tyson also plan to open two biggest broiler factories in Lvxian Town and Yanzhuang Town in 2013.

Year 2013 was a tough year for China’s poultry industry.  From another perspective, the industry performance also provided a rare opportunity for the expansion of the leading enterprises as seen above.

According to Chen Jianhua’s analysis, there are two main reasons why international giants one and another enter China mainland market, First of all, China has a large population and a huge consumer market, any business will not ignore this market. Secondly, with the advance of urbanization as well as the raise of CPI, this market still has a huge room to grow.

In addition, the industry concentration of China market is far less than the United States, Chen Jianhua commented that the top five companiesin he USA combined market share was up to 67%. At present, there are tens of thousands of broiler farming enterprises in China, Fujian Sunner as China’s largest broiler farming enterprises, who only controls 5% market share , he also said that China’s tomorrow is United States’ today, the future of domestic farming enterprises must have an intense phase integration, now is only a beginning and industry downturns precisely offers a best time for large enterprises mergers and acquisitions.

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