Largest fish feed company in China invests in pigs

The largest Chinese producer of fish feed has big ambitions in the pig sector. The Guagdong Haid Group, together with the government, is investing big money in several mega projects in central and southern China.

In the coming years, almost 4 billion renminbi (more than €500 million) will be invested in production facilities for pigs and feed. In doing so, the company is following the example of New Hope, China's largest feed company, which has similar plans. The Chinese government is happy with these plans and gives plenty of encouragement, because the companies stimulate the economy in the often poor rural areas in China.

From feed to slaughter
The money is spent in various Chinese regions (eg Hunan and Guanxi). For example, in Hunan, 1,5 billion Renminbi is invested in a complete production chain, together with the local government of the city of Qingyuan; from feed to processing. In another place (Zixing), a subsidiary of Haid Group is investing in additional production capacity for 200.000 pigs.

The listed Guagdong Haid Group sold about 2017 million tons in 8,49, which is 15,8% more than in the previous year. Sales of pig feed in particular grew strongly. The company produced about 400.000 pigs in 2017. This number is likely to be increased to 2018 pigs in 800.000.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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