China's Shineway Group will invest US$10 million (70 million yuan) to its Henan-based subsidiary Shuanghui Animal Husbandry Co., for a pig farm project, the company announced on June 30.
Shineway Group and its listed company – Shuanghui Investment and Development Co. – will respectively offer US$2.3 million (17.5 million yuan) and US$7.7 million (52.5 million yuan) to this project, said Lei Yuting, the manager at Investment and Development Department of Shineway Group.
"The new pig farm – with 200,000 pigs of annual production – is scheduled to distribute hogs to our slaughterhouses from early 2010," said Lei.
"After the new farm starts producing, the company's annual pig production will increase from about 100,000 pigs now to 300,000 pigs," he added.
Securing stable hog supply and improving food quality control are major reasons for Shineway Group to build its own pig farms, and its annual production is expected to reach 3 million pigs in the future, according to Lei.
Shineway Group currently has an annual slaughter capacity of 15 million pigs, but its own live pig supply of 100,000 heads per year only accounts for about 1% of total slaughter amount.