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Friday, August 7, 2015
Muyuan Foods to expand with new pig farm, feed facility
China’s Muyuan Foods has signed a cooperation agreement with Tongxu County, Kaifeng City, Henan, to construct a pig farm that will produce 550,000 thousand head of pigs annually, and a feed facility which can produce 360 thousand metric tons of feed every year. The program involved US$96.66 million total investment.
In 2014, Muyuan sold 1.85 million pigs, and the launching of this program will increase nearly one third of its productivity. Muyuan also said that with the enhancement of management and scale, the company will establish its integrated industry chain including feed production, pig breeding, and commercial pig production.
Muyuan noted that, in the second quarter pig prices increased continually; the company is also positive with the Chinese economy and the long-term development of pig industry. The performance forecast of Muyuan also showed that the company would make a profit instead of suffering a loss from January to June, 2015, with the net profit estimated at US$4.83 million to US$10 million.
Chinese pig prices have been hiking in the past few months. As the biggest intensive pig farming company in Asia which was set up in 1992, the share price of Muyuan Foods jumped from US$5.15 on July 9 to US$11.57 on July 23, with a cumulative gain of 124.53 percent.