Qianxihe’s accelerating growth of the industrial chain is beginning to show signs
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On April 7, 2007, a survey was conducted on Beijing Qianxihe Food Co., Ltd., which New Hope holds 30% of its shares. Visit the slaughtering and processing process of Qianxihe, and browse the main cold fresh meat products and high and low temperature meat products of Qianxihe. And have a discussion with the chairman and general manager of Qianxihe Company.
Qianxihe speeds up its growth, and the new hope industry chain is beginning to take shape
1. The rapidly growing Qianxihe Company-the exclusive supplier of cold meat and meat products for the Olympic Games
Qianxihe is a comprehensive private enterprise of food and catering. It is a company that provides catering services for PLA colleges, institutions and government agencies. In 2002, a large-scale slaughter and meat processing plant was built in Pinggu, Beijing. Mainly engaged in pig slaughtering, segmentation and deep processing business. At present, the slaughter capacity of Pinggu Qianxi Crane reaches 1.8 million heads/year.
50% of live pigs come from designated breeding bases, and the other 50% are purchased by brokers. Due to the introduction of world advanced equipment such as German BANSS and South Korea, coupled with the strict management system of private enterprises, the company’s product quality is excellent. It even became a meat supplier in Zhongnanhai. In the Olympic meat product supplier bidding, he won the bid and became the “2008 Beijing Olympic Games exclusive supplier of cold fresh meat and meat products.” It has been recognized by the market without a word.
Due to the shortage of funds and lack of experience in sales channels, Qianxihe finally reached an equity transfer agreement with New Hope after multi-party negotiations in 2006. New Hope invested 122 million yuan to acquire a 30% stake in Qianxihe.
New Hope intervened in Qianxihe and quickly entered the substantive management stage. Send the chief financial officer. And actively help Qianxihe market promotion. At the just-concluded Chongqing Sugar and Wine Party, Qian Xihe was born in a high-profile manner. Propaganda is extremely strong. Achieved very good results. The company’s orders for high and low temperature and new products, ready-cooked meat, have increased significantly. And with the help of New Hope Group’s mature market promotion experience and extensive market network. The sales of meat products doubled in the first quarter of this year.
2. A new project will be built, and the production capacity will be expanded to 6 million heads/year
Qianxihe slaughter business has three factories in Beijing, Hebei Nangong and Shenyang; plans to invest in three projects: Jiangsu Taizhou, Anhui Hefei and Shenyang deep processing projects. We expect that the new project will start in the second half of the year and will be completed next year, with significant benefits in 2009. By then, the company’s slaughter of pigs will reach 6 million pigs per year. Deep-processed products reached 180,000 tons. There has been a substantial increase on the existing basis.
3. The acquisition of Qianxihe, the new hope “big agriculture” platform will be initially established, indicating a huge room for development
After New Hope acquired Shandong Liuhe Group in 2005, its total feed output reached 6 million tons. Become one of the largest feed companies in the country. However, the feed industry chain is short, which is greatly affected by fluctuations in raw material prices and meat terminal markets.
At the same time, New Hope Group also has a good ham sausage, which accounts for 60% of the market share in the southwestern market. But there is no breeding and slaughtering business. The feed and meat products business is dispersed in New Hope Co., Ltd. and the group.
After the acquisition of Qianxihe, New Hope Group will open up the industrial chain of “feed-breeding-slaughtering and deep processing”. The realization of integrated operation will enable New Hope’s feed sales to grow steadily, and it will also enable the slaughter and processing business to have a stable and high-quality source of live pigs. Industry conversion costs are greatly reduced. The company’s profit model will undergo major changes.
In the future, New Hope will build an integrated agricultural industry chain based on New Hope Co., Ltd. as a platform. The income of the stock company will change from the current feed and dairy industry to feed, dairy and slaughter processing; the proportion of manufacturing (feed, dairy) in the profit structure will gradually increase.
4. Food safety will promote changes in the agricultural and sideline product processing industry.Give birth to huge room for development
We believe that food safety is the focus of China’s food industry in the future, especially the current safety problems of agricultural and sideline products, which are closely related to the daily lives of ordinary people. It is also the main export product of my country’s agricultural products (18.94, 0.36, 1.94%). Therefore, improving the quality of agricultural and sideline products (including grains, oils, and especially meat products and aquatic products) is not only related to the reputation of the government and the safety of the people, but also related to the future position of China’s agricultural products in the international market.
At present, the safety problems of China’s agricultural and sideline products are mainly in the production link, that is, the hidden dangers in the agricultural planting and breeding link are the greatest. This link belongs to the category of agriculture, and the development speed and level are lower than that of post-processing, and also lower than the upstream feed supply link. Extremely fragmented and no production standards.
To improve the level of planting and breeding industry, it is impossible to rely on farmers alone. It must be driven by advanced linkages, either integrated by feed companies, or connected by downstream slaughter industries. The new hope model is to use its advantages in feed and downstream slaughter assets to connect the breeding links in the midstream.
The specific method is to cooperate with the local government to establish a standardized breeding community, contract to farmers, and then provide farmers with breeding pigs and feed and standardized breeding procedures. Buy it after raising it. Fixed profits for farmers. In this way, farmers become a production workshop in the New Hope industrial chain; product quality is controlled. Therefore, integrated management will realize the traceability of agricultural and sideline products.
The traceability of agricultural and sideline products is an institutional guarantee for food safety. It is also a development trend. The latest food laws in Europe have seen four important changes in terms of imported food: First, the scope of the new regulations has been extended to all foods; Second, food safety and trade are no longer confused, and only focus on food safety issues; Third, food supply is required The integrated management of the chain (that is, from the farm to the table) puts forward more requirements on food producers; fourth, it has responsibility traceability, and the problematic food will be recalled. In other words, the EU has substantially raised technical barriers. In terms of technical barriers, it is “light inspection, heavy system.” The European Union and the United States and other developed countries have achieved “traceability” in agricultural and sideline products. The characteristics of integrated management are also obvious. Take the United States as an example, including Cargill. The top four companies, including the company, Conagra, Tyson, and Sminthfield, control more than 50% of the meat processing and production in the United States, and also account for 34% of the feed. Cargill is the largest in the United States The agricultural and animal husbandry enterprise group (including animal nutrition, breeding, meat processing, and terminal sales) has an annual feed output of 14 million tons, accounting for 7% of the total feed output in the United States.
China’s food safety problem cannot be solved by “3.15”, nor can it be reduced by the outrage of the media. Must rely on the system. The establishment of a complete traceability system can fundamentally guarantee food safety issues.
The 2008 Beijing Olympics will establish a “food safety traceability system”, which uses RFID (non-contact micro radio frequency identification) electronic tags for intelligent reading and writing, encrypted communication and other functions, combined with GPS positioning systems for transportation vehicles and temperature, The humidity automatic recording device realizes the whole process control from the production base through the processing enterprises, the logistics distribution center to the Olympic Village.
This has actually given us a signal. The “traceability system” started. This is a system at the government level. In the future, it will gradually move towards “traceability” at the enterprise level. Realize the integrated management of the industry.
Integrated management is not only in line with the development goals of a harmonious society, but from the perspective of benefits, there is also a huge room for profit. During the conversion of feed-breeding-processing industries, distributors earn 10%-20% of profits. After the integration, dealer costs have been reduced.
From the practical experience of developed countries, animal husbandry can also create super conglomerates. .. Cargill is also an oil processing (also producing protein feed) enterprise. The annual output value is about 70 billion U.S. dollars. If Cargill goes public, it should rank around 20 in the world’s top 500 companies.
At present, the concentration of China’s agricultural and sideline products processing industry is still very low, with an annual output value of 270 billion yuan in the feed industry. The largest company’s market share is less than 1%. Therefore, when the product traceability system is gradually established, integration will create large-scale enterprise groups.
In this change, companies that have already occupied a leading position and have certain financial strength and brand influence will stand out. The new hope is that feed and slaughtering and processing have established their own strong market positions.
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