Chinese meat processor, Zhejiang Huatong Meat Products is partnering with 2 Fuzhou-based companies, Fuzhou Farming Group and Fuzhou City Lvyuan Industry, to invest Rmb 7.6 billion (US$1.1 billion) in building a pig breeding cluster near eastern Jiangxi province.
This major investment occurs despite the dwindling prices of pork since the beginning of the year.
A total of US$913 million will be allocated to building 20 hog farms that will breed 2 million hogs for slaughter every year. Another US$74 million will go towards 2 feed processing plants with an annual output of 1 million tons. Meanwhile, approximately US$115 million will be injected into the construction of a slaughter house with an annual capacity of 2 million pigs. The remainding amount will go towards other agricultural projects.
The investment is expected to optimise Huatong’s industrial landscape, accelerate development of its main business and improve management of the integrated pig industrial chain.
The partnership will last for a period of 6 years.