|Introduction to the Beef Raising and Deep Processing Project
of Jin Di Livestock Breeding Company
Contractor: Datong Jin Di Livestock Breeding Company (with scale of breeding 100,000 beef stock and slaughter 50,000 beefs for commercial use annually)
Promoted by series of policies aiming at speeding up the development of farming and animal husbandry industry from the Chinese government, the animal husbandry industry has experienced a progressive increase of 9.9% annually and continuously in the past 20 years, which has brought the output value up to RMB 400 billion, nearly five times that of 20 years ago. With the construction and development of Ecological Animal Husbandry in Yanmenguan Economic Zone, Shanxi Province plus the fact that the local farmers have a habit of raising cattle; of course the further execution of such projects as tackling the source of sand problem for Beijing and Tianjin will lead to the expansion of grassland areas. In addition, there is a tradition of growing alfalfa and corn in the site for the project with an annual capacity of 0.9 billion kilograms alfalfa and 1.2 billion kilograms straw. All above factors will lay the foundation of abundant forage for this project.
This project belongs to the animal husbandry industry. The construction scale for the first phase of the project is to slaughter 30,000 beefs per year and keep 10,000 beefs of livestock on hand per year. As the product is nuisance-free and high quality beefs, it has a good market at present. The project will be operated in the way of company, base and peasant households added together. Up to now the base has purchased 2,000 Mu of land, among which 400 Mu will be used as deep processing field including forage grass and feed processing factory, organic fertilizer processing factory, etc, 200 Mu will be used as science and technology field including the breeding centre, the epidemic prevention centre, R&D centre, the office buildings and the residential buildings, and the remains will be used as the demonstration base for growing forage grass and processing feed.
Located in the Beijiazao Town of Datong County, 12 kilometers away from Datong City, the breeding centre enjoys a very convenient transportation. The express ways of Jingda and Deda, the high way of Datang, Hudong Railway Marshalling Station and the Datong Airport are all within 3 kilometers away. 13 self-supply wells have been dug in the base so that rich water resources and high quality water are available. And power and communication facilities have been set up in the base.
The construction of fattening farm branch 1 has been completed in the township of Huanyuantun, 10 kilometers away from the downtown. 3,000 beef cattle for sale is available. The foundation and supporting projects for slaughtering workshop, located in the place where just in the intersection point of the express way Jingda and the high way Datang, have been finished.
The project construction period will last 2 years and the total investment needs RMB 0.24 billion, among which RMB 0.16 billion is planned to be introduced.
When the project is put into normal production, it is expected that the value of sales will be RMB 0.25 billion, the internal earning ration will be 22% and the payoff period will be 5-6years.
When put into production, the project will produce enormous social benefits. Because raise of calves and feeder cattle will be entrusted to peasant households, thus, around 30,000 peasant households will have an income increase of 2,500 to 3,000 RMB. Number of people needed for raising fattened beefs, processing forage grass and feed, slaughtering beefs, packaging, transporting, and producing organic fertilizer, etc. is estimated to be 1,0000. This will not only increase the income of peasant households, but also provide opportunities of employment for rural labor force.
With the fast development of China’s economy, the life quality of the people is improving steadily; demand on the meat market presents a diversified development; structure of consumer demand will be further adjusted and optimized; consumption of pork is decreasing year by year, but that of beef is increasing progressively by an average speed of 6% per year. The main product of this project is nuisanceless high quality beef. Besides supplying it to domestic market and grand hotels, some of the beef will be exported to Hong Kong, Macau, Japan, Korea and Arab countries. That is to say that there is no necessary to worry about the market. However the key problem is whether the beef produced by our company is of high quality and safe. We have established a consultant team including six experts, among whom Professor Huang Yingxiang is an expert of raising nuisanceless beef from Shanxi Agricultural University and Mr. Yang Xiaomin is a research fellow with the Animal Husbandry Research Institute of Shanxi Province, so that the raising of beefs can be carried out scientifically under the strict supervision by the experts to ensure the product quality and to develop famous brand.
Joint venture, cooperate or financing are all acceptable. The foreign party can control the majority of shares according to the percentage of investment.
Advantages in the Project Construction
Following advantages are there in the project construction: a) Low production cost: As the project locates in a place where is rich in forage grass and feed as well as labor force, boasting an obvious advantage in production cost; b) Sharing the help from groundwork in breeding animals; 3) with experienced technical and managerial personnel; 4) governments attach great importance to the project, i.e. sharing preferential government policies; 5) Water around the base is in fine quality and free of pollution.
When the project is put into production, our company will consider the development of relevant industries, such as leather processing, colloid making with beef bones, bone powder processing, medicine making with beef blood, packaging, transportation, refrigeration, etc, to extend the chain of industries so as to increase the company’s income and update our production technology. We’ll also create more opportunities of employment for local farmers. And the cattle manure can be used as the raw material for producing methane, raising earthworm and growing mushroom. All this will fuel the driving the countryside construction forward.
Progress in Pre-phase of Project
Our company has done mountainous work in the pre-phase of the project, including investigation by visiting such big animal husbandry breeding and processing companies in Xinjiang, Shandong, Tongxian County in Beijing, and etc. Now, our company has completed the compiling of detailed commercial schedule sheet in both Chinese and English. All the relevant government ratifications have been obtained.
Brief Introduction to the Organizer
The organizer of this project is Datong Jindi Livestock Breeding Company, Ltd. which has fixed assets of 80 million RMB and circulating funds of 3 million RMB. Liability/asset ratio is 5%. The company is subordinate to the Jindi Group, composing Datong Jindi Shopping Mall Company, Ltd., Datong Jindi Real Estate Development Company, Ltd, and Datong Jindi Livestock Breeding Company, Ltd. The Group has total assets of 0.22 billion RMB and the annual profit and tax is 12 million RMB.
On the principle of diversified development, the Group cast funds in cooperation with the construction of Yanmenguan Economic Zone for Ecological Animal Husbandry, aiming at building a strong beef raising and deep processing industry. This will not only benefits the Group, but also drives the development of crop farming industry and the relevant industries. If the chain of industries for this project is extended, there will be great potentiality for development and the ability of profit earning will also be reinforced.
8. Project Leader in Chief: He Huiming (chairman of the board of directors)
Tel: 0352-2427258; MP: 13008090888