Genus, a world leading animal genetics company, is pleased to announce significant
advances in its strategy for expansion in China with progress being made in both
the bovine and porcine sectors. These initiatives represent major steps forward
in the Company's strategic focus on growth in emerging markets whilst maintaining
its leading status in the developed world.
Joint venture with leading Chinese dairy company
Genus has made an important breakthrough in its strategy to enter the local market
in China. An agreement in principle has been made with Mengniu, the market leading
Chinese dairy company, to establish a joint venture to produce elite bovine genetics
in China. The local semen that will be produced will be marketed and sold in
China to Mengniu's substantial existing farmer supplier base through already
established distribution channels.
Mengniu produces, markets and distributes a wide range of dairy products throughout
China, including Hong Kong and Macau, and operates from 23 production bases that
have an annual total output of approximately 4.5 million tons of dairy product.
Mengniu's contract farmers supply milk from almost twice the number of cows that
comprise the UK market. Mengniu was founded in 1999, is listed on the Hong Kong
Stock Exchange and now has a market capitalisation of approximately £1.5bn.
The joint venture will be confirmed by a formal agreement and in anticipation
of the formation of the joint venture, Genus is transferring 14 progeny tested
bulls from its Australian stud to China as well as a quantity of semen from the
USA to represent opening stock.
Increased porcine capacity in China
In September 2008 Genus announced the expansion of its porcine breeding stock
production network in China. Genus is pleased to announce a further increase
in this capacity. Genus has contracted to lease production nucleus capacity in
Liaoning province to meet forecast increases in demand as more world class pig
units are established as a result of Chinese government initiatives to promote
modernisation in the agricultural sector. This investment underpins Genus’ position
as a market leader in China for the supply of elite genetics to China’s
foremost farmers and pork producers.
The new production nucleus farm is expected to commence activities in October
2010 and when completed Genus will have established sufficient production capacity
to enable its customers to breed an estimated 17 million pigs per year in China.
This represents almost twice the whole UK output for pigs.
For more see
www.genusplc.com