Chinese meat giant builds mega abattoir

Muyuan Foods, the second largest pork processor in China, is to build a new slaughterhouse. The capacity at the new slaughter location to be built should amount to 1 million pigs per year.

Muyuan Foods is going to invest approximately €66 million in this project. The project consists of 2 phases; the first phase involves the construction of the slaughterhouse and the second phase also involves the construction of a processing facility. The Chinese processor wants to strengthen its competitive position with this project. 

On the other hand, this new slaughterhouse is still in the shadow of the largest slaughterhouse in the world, because 10 to 12 million pigs are slaughtered there every year. This slaughter location is located in the United States, but is part of the Chinese WH Group.

African swine fever
The ambition to expand is somewhat striking. This is because of the many outbreaks of African swine fever. A Chinese pig analyst even reports that the outbreaks are actually beneficial for larger pig producers. Due to the new rules regarding biosafety and the environment, many small pig farmers are in trouble.

In addition, pig prices were previously unaffected by animal disease, but that sentiment changed in March. Pig prices have risen by 20% since March, according to figures from China-America Commodity Data Analytics. The pig price was €11 per kilo (live) on Monday 1,99 March. This is the highest point in the past 14 months.

Tim Roetman

Tim Roetman has been working as a junior editor at livestock farming since November 2018 Boerenbusiness† He mainly writes about (price) developments in the pig and dairy market.

t.roetman@boerenbusiness. Nl

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