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Goldman Sachs Invests in Chinese Pig Farming

05 August 2008

CHINA - Goldman Sachs has invested US$200 to 300 million in purchasing a dozen pig farms in China's Hunan and Fujian provinces.

This indicates that foreign investors are showing growing interest in China's farm and sideline production, according to oficial sources.

Deutsche Bank Group's DWS Investments launched DWS Global Agribusiness Fund in September 2006 with investment in China's breeding business.

Cao Jianhai, a researcher with the Institute of Industrial Economics under Chinese Academy of Social Sciences, said that the enormous market, low labour cost and brisk price increase expectations would bolster investors' investment in this sector.

Mr Cao added that substantial profit could be obtained given tight grip on the industry chain of live pig breeding.

At present, China's live pig breeding and processing industry maintains low concentration with top three meat processing enterprises sharing 3.7 percent of national market.

International capital players could make profit through controlling domestic live pig breeding enterprises and the prices of soybean, maize and other meals on the international market, according to analysts.

The report adds that China - the world largest breeder and consumer of pigs - plans to launch live pig futures in a bid to curtail price fluctuations and prompt integrations.

ThePigSite News Desk



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