Professionals race to expand businesses
Compared to the amateur pig raisers, the professional pig-raising companies have been preparing for fierce fights for quite some time.
"Undersupply, sky-rocketing prices, and food safety have become major concerns to the whole nation and the world," said Liu Yonghao, board chairman of the New Hope Group, a leading domestic feed producer and agribusiness operator.
"We are planning to invest 5 billion yuan ($777 million) in Shenyang, Liaoning Province, in five years to raise 100 million chickens, 100 million ducks, and 3 million pigs, building an industry chain of breeding, raising, and slaughtering, while also fostering cooperation with partners in processing," Liu added.
As early as July 2010, Yu Xubo, president of the state-owned China National Cereals, Oils, and Foodstuffs Corporation (COFCO), had revealed that COFCO was planning to open up a farm in Tianjin that could hold 1.5 million pigs.
To improve its industry chain, COFCO also planned to set up an abattoir that can slaughter 1.5 million pigs per year and a meat processing company, which were expected to bring in 2 billion yuan ($311 million) and 700 million yuan ($109 million), respectively.
The Guangdong Wenshi Food Group, not resigned to play second fiddle, is actively expanding its businesses across the country. Up to now, it has built factories in various regions all across China.
"We are aiming for Northeast China now, and will first establish a factory in Liaoning Province," said Huang Songde, vice president of Wenshi.
Statistics show that over 40% of the live pigs on Guangzhou's market come from the Wenshi.
Henan Chuying Agro-Pastoral, a livestock enterprise in China, has also put more effort into raising pigs. They have planned a 4-billion-yuan ($622 million) investment in 1 million pigs in Sanmenxia. Its chairman and president Hou Jianfang once stated the company's revenue growth in the second half of this year and the next year would totally depend on the pig-raising business.
Experts say that early next year might be a turning point for the market supply and demand of live pigs. According to statistics, the supply of live pigs in Guangdong will increase by 30%-40% next year, which will probably result in a fall in pig prices.
