NewHope eyes over­seas buys

China Daily (USA) - - BUSINESS - By LYUCHANG lvchang@chi­

New Hope Li­uhe, a list­ed­com­pany of China’s largest feed-grain pro­ducer New Hope Group, said it will con­sider more over­seas ac­qui­si­tion pos­si­bil­i­ties to feed the coun­try’s growing ap­petite for meat.

“We will look into the pos­si­bil­i­ties of merg­ers and ac­qui­si­tions abroad. This is not only to sat­isfy do­mes­tic de­mand but also part of the com­pany’s strat­egy to have global pres­ence,” Deng Cheng, vice-pres­i­dent of New Hope Li­uhe Co Ltd, told China Daily.

He said the tar­gets must have good nat­u­ral re­sources, a safe in­vest­ment en­vi­ron­ment and cost advantages in terms of pro­duc­tion, adding that coun­tries in Cen­tral Europe such as Poland have very good con­di­tions.

As a ma­jor meat pro­ducer, NewHope Li­uhe plans to in­crease its ca­pac­ity, es­pe­cially in poul­try, in the next few years as the Chi­nese peo­ple in­clude more meat in their daily diet. It also has some of the coun­try’s lead­ing beef, dairy, pork and poul­try brands.

The com­pany plans to in­vest about 8.8 bil­lion yuan ($1.3 bil­lion) for pig breeds, Deng said.

Liu Yong­hao, the bil­lion­aire chair­man of New Hope,

China’smeat im­ports surged nearly 80 per­cent in the first half of this year, as the Chi­nese peo­ple shift to a more­meat-rich diet, of­fi­cials told China Daily onWed­nes­day.

Meat im­ports stood at 2.1 mil­lion met­ric tons in the world’s sec­ond-largest econ­omy, with more of the im­ports com­ing as beef and pork, com­pared to a year ago, said Li Shui­long, ex­ec­u­tive pres­i­dent of the China Meat As­so­ci­a­tion.

The as­so­ci­a­tion fore­casts that de­mand formeat in China will reach as much as 10 mil­lion tons by 2020, ac­count­ing for half of the global trade in meat.

“As China’s econ­omy has grown, the diet of many Chi­nese peo­ple has changed. De­mand for beef and pork has never been stronger, and do­mes­tic sup­ply is sim­ply un­able to keep pace,” he said dur­ing the China In­ter­na­tional Meat

said in April that the group will in­vest up to 10 bil­lion yuan in the next three to five years on high-end an­i­mal pro­tein and food-re­lated as­sets over­seas.

The pri­vately-owned com­pany in Sichuan province In­dus­try Week 2016 held in Bei­jing.

Brazil has over­taken Aus­tralia as the largest beef ex­porter to China, ac­cord­ing to the as­so­ci­a­tion.

Jiang Hua, founder and chief ex­ec­u­tive of­fi­cer of, an on­line trad­ing plat­form formeat, said that im­ports from­coun­tries such as Brazil, Aus­tralia and even the United States, from which China lifted its im­port ban ear­lier this month, will con­tinue to have a neg­a­tive im­pact on do­mes­tic play­ers.

“The fierce com­pe­ti­tion has just started with so many brands avail­able in the mar­ket. I think small meat pro­duc­ers are likely to be ei­ther driven out of the mar­ket or merged with other strong and big com­pa­nies in the next few years, and com­pa­nies will have to fo­cus on safety, qual­ity and brand­ing to guar­an­tee a slice of the mar­ket,” he said.

We will look into the pos­si­bil­i­ties of M&As abroad.” vice-pres­i­dent of New Hope Li­uhe Co Ltd

is also seek­ing to ac­quire live­stock-breed­ing com­pa­nies over­seas, he said, cit­ing a lack of such ca­pa­bil­i­ties in China and in­creas­ing do­mes­tic de­mand for beef, lamb and seafood. Deng Cheng,

A chang­ing diet cou­pled with a mas­sive boost for the meat in­dus­try has pushed more Chi­nese com­pa­nies into tra­di­tional meat-pro­duc­ing re­gions such as Aus­tralia and New Zealand, where meat in­dus­try has been driven largely by Chi­nese con­sumers.

This month, the au­thor­i­ties in New Zealand fi­nally gave the go-ahead for Sil­ver Fern Farms, the coun­try’s big­gest meat co­op­er­a­tive, to sell a half stake to a Chi­nese pig pro­ces­sor Shang­hai Mal­ing af­ter long ne­go­ti­a­tions.

The deal, val­ued at NZ$261 mil­lion ($191 mil­lion), will be able to pay off SFF’s debt and its up­grades of plants and op­er­a­tions.

It will also help the New Zealand com­pany to gain ac­cess to thou­sands of re­tail out­lets, as Shang­hai Mal­ing has direct con­trol of 800 su­per­mar­kets and stores.

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