On January 2, the government of Neijiang City,
Sichuan province held a ceremony with New Hope Liuhe Ltd. for the signing of an
agreement to implement a plan for the creation of a 1.5 million pig industrial
chain. The vice-mayor of Neijiang, along with a representative from New Hope
Liuhe Ltd., met personally to sign this agreement. The deputy secretary of the
Neijiang Party Committee, as well as the deputy secretary of New Hope Liuhe
Ltd., attended the signing ceremony and spoke about the significance of the
agreement.
The
deputy secretary of the Neijiang Party Committee stated to the press that Neijiang
is an energetic city with great potential for development and with a bright
economic future. The city has a strategic location in central China, which
gives a firm foundation for any production enterprise, and the city itself also
provides a strong economic environment. The city government sees the importance
of the pork industry in providing stable jobs for the city, and Neijiang
government welcomes New Hope Liuhe Ltd. to come to the city to invest in a new
pig production enterprise. Neijiang also hopes to develop strong ties with New
Hope Liuhe Ltd. for the benefit and growth of both the company and the city.
The deputy secretary of New Hope Liuhe Ltd. stated that the company plans to
begin working on implementing the pork production plan as quickly as
possible.
New Hope Liuhe Ltd.
to facilitate breeding, raising, slaughter of pigs, as well as refrigerated
shipments
According to
reports, New Hope Liuhe Ltd. plans to invest RMB 3.5 billion into this pork
production project in Neijiang. The company plans to follow a “complete
industrial chain” model by which it will carry out each step of the pork
production process in the city of Neijiang. By 2023, the company plans to
complete facilities for the breeding, raising, and slaughter of pigs, along
with a logistic setup for transporting refrigerated pork to other cities. With
this plan, New Hope Liuhe Ltd. plans to produce approximately 1.5 million pigs
worth of pork per year. Part of the company’s plan includes building a raising
and breeding facility that accommodates 60,000 pigs, a feeding facility that
accommodates 1.5 million pigs per year, a factory for producing 550,000 tons of
pig feed per year, and a slaughterhouse capable of slaughtering 1.5 million
pigs per year. New Hope Liuhe Ltd. has already begun constructing three raising
and breeding facilities in Neijiang, which span 7000 acres. The company plans
to complete the construction of the first facility during March of this year
and begin raising piglets in the facility by the end of the year.
Neijiang government increases pork market supply to meet New
Year demand
According
to news reports from the Neijiang Development and Reform Committee, prices of
foods including pork, vegetables, eggs, and other common food products remained
stable during the New Year. In particular, pork was priced at around RMB 55 per
kilogram, and beef was priced at RMB 83 per kilogram, and these prices did not
experience any notable fluctuations around the New Year. In order to keep pork
prices stable during the New Year season, the city government of Neijiang
introduced high quantities of frozen pork into the market in order to meet
increased demands.
For
more information on China’s pork market, please check our Food
and Feed China Market Intelligence.