Chinese broiler company Sunner Development is expanding, despite the fact that China’s chicken industry has not witnessed any other signs of growth.
After putting a new broiler program into operation in 2014, the broiler program that Sunner Development Pucheng invested in with SunOSI Co. Ltd, is expected to be operational later in 2015. The company plans to slaughter 360 million broilers in 2015, which a Sunner Development spokesperson says is an attainable goal judging by the output of the birds.
The number of birds slaughtered by the company in 2015 is expected to jump by 28.5 percent from the 280 million birds slaughtered in 2014. By May, the slaughtering figure had reached 120 million. Considering that there will be a peak in the second half of the year, and with the operation of a new chicken processing plant, the goal is expected to be reached.
According to data released in 2014, the revenue Sunner Development’s chicken business amounted to CNY6.078 billion (US$1 billion) with a year-on-year growth of 35.1 percent and a net profit of CNY76.1784 million (US$12.45 million), back to profitability. In 2014, the chicken sales of the company amounted to 553.5 thousand tons, increasing 29.8 percent on a year-on-year basis. Tthe average prices of chicken stood somewhere near CNY10.98 (US$1.8) thousand per ton, a year-on-year increase of 4.2 percent.
SunOSI Co., Ltd. is a business venture jointly funded by Sunner Development and the American food producing company OSI Group. It is the second venture in Sunner Development’s expansion investment strategy after Sunner Development Pucheng, which was put into production on December 20, 2012.