China Beef Industry report. Opportunities

Nuestra amiga Amy Cole nos envía este nuevo reporte sobre la Beef Industry in China

With beef production above 7 million tons, China is the 3rd largest beef producer in the world; but backyard farms and manual slaughter units are main players of the industry. Large cattle farms with annual cattle crop higher than 100 heads only gain a market share of 11% while modern slaughterhouses' market share is only 13%. For beef products, Room Temperature Beef account for more than 80% of total beef production.

In recent years, China breeder cow inventory kept declining due to poor earnings from breeder cow business, which will make China cattle inventory and beef production decline from 2008. China's beef production will only recover in 2012.

In 2007, there were about 1000 cattle slaughterhouses in China with total capacity of 12 million heads per year and total beef production less than 1 million tons, which accounts for 20% of national beef cattle crop and 13% of national beef production respectively. The largest company only slaughtered 150 thousand heads in 2007.

Declining cattle inventory make public company -- Fucheng (Hebei)'s beef production fall by 18% in 2007, and other large beef companies also suffer with capacity utilization rate only 20%. Small companies will soon suspend production or exit the industry, which will allow integration opportunities for large companies. The largest beef company in China - Jilin Haoyue group planned to double its capacity to 1 million heads before 2010.

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