China: Processing giant signs chicken farm contract

Chinese meat processing giant Henan Luohe Shineway Industry Group has signed a joint venture agreement with Japanese Nippon Ham Group for a large chicken farm.

Reports state that the poultry farm project, cost RMB 1.15 bln, will begin in the coming months with production expected to begin in 2010.

It is estimated that Shineway will realise sales revenue of RMB 3 bln per year once the chicken farm is operational.

A representative of Shineway said Nippon Ham will provide technology while Shineway will be in charge of the poultry project company and sell the JV's chicken products under its own brand.

Source: China Knowledge