Why Is Wens Deepening Cooperation on OEM Feed with Twins Group

By CnAgri2017-05-26 10:38:39 Print

Recently, Wens has been having high-level visits with Twins Group on deepening OEM cooperation in some areas and further expanding cooperative fields.

Wens has short development of hog farming, but, depending on Wens’ mature model “company + farm household”, Wens is developing hog farming quickly. 2016 Wens’ hog production recorded 17.1273 million heads, up 11.57% year on year, and the market share was around 3%. Wens proposed to achieve the developmental target of hog production at 30 million heads in 2019. In 2016, it had set up 1.82 million heads of hog capacity in Cangzhou of Hebei, Xianyang of Shaanxi, Haozhou of Anhui, Yongzhou of Hunan, etc. Besides, it plans to build hog farming capacity in Chifeng of Inner Mongolia, Chaoyang and Siping of Liaoning, etc. For Wens, if it totally depends on self-build feed mills, it will take huge investment, a long time, more labor and energy, which can’t give full play to the advantage of light-asset operation.=

Twins is the domestic biggest pig feed producer, owing more than 100 subsidiaries with annual feed capacity of more 20 million MT. However, along with number of terminal customers decreasing and farming scale increasing, the competition in feed industry is increasingly heated, influencing the growth of Twins’ feed production and sales. Twins, a contract manufacturer for Wens, can effectively improve the operating rate of some subsidiaries, increase capacity utilization, achieve the growth of feed production and sales, and improve brand value.