On January 2, the government of Neijiang City, Sichuan province held a ceremony with New Hope Liuhe Ltd. for the signing of an agreement to implement a plan for the creation of a 1.5 million pig industrial chain. The vice-mayor of Neijiang, along with a representative from New Hope Liuhe Ltd., met personally to sign this agreement. The deputy secretary of the Neijiang Party Committee, as well as the deputy secretary of New Hope Liuhe Ltd., attended the signing ceremony and spoke about the significance of the agreement.
The deputy secretary of the Neijiang Party Committee stated to the press that Neijiang is an energetic city with great potential for development and with a bright economic future. The city has a strategic location in central China, which gives a firm foundation for any production enterprise, and the city itself also provides a strong economic environment. The city government sees the importance of the pork industry in providing stable jobs for the city, and Neijiang government welcomes New Hope Liuhe Ltd. to come to the city to invest in a new pig production enterprise. Neijiang also hopes to develop strong ties with New Hope Liuhe Ltd. for the benefit and growth of both the company and the city. The deputy secretary of New Hope Liuhe Ltd. stated that the company plans to begin working on implementing the pork production plan as quickly as possible.
New Hope Liuhe Ltd. to facilitate breeding, raising, slaughter of pigs, as well as refrigerated shipments
According to reports, New Hope Liuhe Ltd. plans to invest RMB 3.5 billion into this pork production project in Neijiang. The company plans to follow a “complete industrial chain” model by which it will carry out each step of the pork production process in the city of Neijiang. By 2023, the company plans to complete facilities for the breeding, raising, and slaughter of pigs, along with a logistic setup for transporting refrigerated pork to other cities. With this plan, New Hope Liuhe Ltd. plans to produce approximately 1.5 million pigs worth of pork per year. Part of the company’s plan includes building a raising and breeding facility that accommodates 60,000 pigs, a feeding facility that accommodates 1.5 million pigs per year, a factory for producing 550,000 tons of pig feed per year, and a slaughterhouse capable of slaughtering 1.5 million pigs per year. New Hope Liuhe Ltd. has already begun constructing three raising and breeding facilities in Neijiang, which span 7000 acres. The company plans to complete the construction of the first facility during March of this year and begin raising piglets in the facility by the end of the year.
Neijiang government increases pork market supply to meet New Year demand
According to news reports from the Neijiang Development and Reform Committee, prices of foods including pork, vegetables, eggs, and other common food products remained stable during the New Year. In particular, pork was priced at around RMB 55 per kilogram, and beef was priced at RMB 83 per kilogram, and these prices did not experience any notable fluctuations around the New Year. In order to keep pork prices stable during the New Year season, the city government of Neijiang introduced high quantities of frozen pork into the market in order to meet increased demands.
For more information on China’s pork market, please check our Food and Feed China Market Intelligence.