Dabeinong Invests RMB10 billion to Set Hug Production Base

By CnAgri2013-10-11 11:13:49 Print

Dabeinong Co., Ltd. has recently unveiled its feed capacity expansion plan, including a 300,000 MT/year feed mill in Jiangshan County of Zhejiang, a 240,000 MT/year feed mill in Bengbu City of Anhui, a 180,000 MT/year feed mill in Xiping County of Henan and a 240,000 MT/year hog complete feed mill in Fengshun County of Guangdong.
 
Besides, the company plans to invest RMB10 billion in Heilongjiang to set up hog production bases capable of 6 million heads/year and a slaughterhouse capable of 4 million heads/year.
 
Against the backdrop of a dull hog market, Dabeinong is quickening its steps to attain a larger market share in order to survive the fierce competition.
 
The company realized a feed sales revenue of RMB6.01 billion in the first half of this year, up 51.35% on the year-on-year basis, a faster growth rate than the feed industry’s average. Its gross profit rate reached 18.68%, above New Hope by 12%.
 
Nevertheless, the company faced a problem of rapid increase of expanses. Its marketing expense, management expense and financial expanse added to RMB969.256 million in the first half of this year, a drastic increase of 58.22% on the year-on-year basis.

 From “China Livestock and Feed Market Weekly Report”