Charoen Pokphand Group (CP), known in China as Chia Tai Group, last week held a signing ceremony for it's CNY 170 million investment in a 360,000 tons per annum modern feed mill. The feed mill to be located in Chengcheng county, Shaanxi and is set to become the province's largest and highest standard feed mill, claiming to be state-of-the-art and of a world-class level.
It is understood that the Chia Tai Group will also invest; CNY 450 million yuan, for the establishment of a pig breeding base capable of 1 million heads; CNY 150 million yuan, for the establishment of a poultry facility with hatchery and a production output of the slaughter of 2 million layer hens per annum; 2.56 billion yuan of investment in the construction of; a facility for the slaughter of 50 million birds broiler industry project; a 200 scale boar station; and an experimental layers farm.
In total the overall project investment is projected to be CNY 3.35 billion yuan. On completition the project is expected to have annual sales income of CNY 2 billion yuan, and employ approximately 5,000 people.
This project comes on the heal of the ground breaking revolutionary '4-in-1' model project that Chia Tai Group worked closely with the Chinese Government on. That project sought to bring to life the Chinese government's vision of developing a ‘Modern Agricultural Village (Xin Nong Cun) aiming to improve the income and livelihood of the country's farmers.
The ‘4-in-1’ model brought together 4 parties consisting of the government, Cooperative of farmers, CP and the bank to construct the largest and most advanced layer chicken facility in Asia. USD 114 million was invested in the project, built in the Pinggu district, in the capital Beijing.
The fully integrated layer chicken project consists of a pullet farm, poultry feed mill, 18 closed-chicken-housing-systems (capable of raising 3 million hens annually), processing and packaging plant, as well as a fertiliser production facility utlising the waste chicken litter. The layer chicken facility is considered to be the largest and most advanced in Asia, and is the first-of-its-kind anywhere in the world to be constructed all at once at such a large scale.
Construction for the project began in April 2010, and in April of this year the facility was formally completed and put into operation.