BEEF CATTLE COMBINED PRODUCTS

Country: P. R. China, Jilin Province, Yanbian Korean Autonomous Prefecture

PROJECT NO.: CPR/98/02/V/001

ISIC: 3111

DESCRIPTION:
Dunhua City and its large rural areas have the largest and fastest growing beef cattle population in Yanbian Prefecture in Jilin Province. In 1996, the established cattle population in Yanbian Prefecture was about 220,000 head and expected to increase to 250,000 by the end of 1997 (with about another 800,000 head available in nearby areas of Jilin Province). The combination of ideal climate, about 200,000 hectares of nutritious grasslands, and other feed sources (e.g., 510,000 tons of grain stalks or stems per year) give the area a distinct advantage in the beef cattle industry. The concept is to - 1. make use of the improved breed of cattle in the area (already done by introducing three types of bulls for breeding stock from France and Sweden), 2. improve the output of the farmers (and the raw materials to the project) by providing training to the farmers through a demonstration fattening yard, veterinary care and fodder, 3. expand the companies fattening yards to 100,000 head (and feeding the cattle fodder, grass, grain and beer by-products), 4. rehabilitate the slaughterhouse to expand from 30,000 to 100,000 head, 5. construct a tanning and leather plant with an annual capacity of 100,000 hides, 6. construct a beef processing, packing and refrigerated storage plant (from the present capacity of 1,000 tons to 3,000 tons with export plans and frozen and chilled cut meat to domestic hotels and restaurants (Japanese vacuum dehydrating and freezing facilities paid for and being delivered) and technology in beef food processing and 7. construct a bone and gelatine factory. Export contracts and sales agreements already exist. The company already has two sites, one lies in the suburbs of Dunhua City (with slaughterhouse and cold storage) and another lies in Dashitou Town (fattening), 20 KM away from Dunhua City. The sponsoring company was established in 1997. It has 220 employees. The contact person is the Vice-Director, Mr Tan Xuequi. His backgroud is 1977-1978 Huangnihe Township No.3 Production Brigade, farmer, 1978-1981 Changchun Metallurgy and Geology School, student 1981-1985 Antu Haigou Gold Mine, technician, 1985-now Dunhua Rural Enterprise Bureau, vice-director and engineer. The sponsor seeks a joint venture, management experise, LOAEX, market access and marketing expertise. From the time the investment decision is made until implementation of the project is estimated to be 24 months. Total investment costs are estimated at US$ 50.674 million with the foreign joint venture partner's portion at US$ 21.5 million. An investment incentive is available; four years tax holiday followed by 50% reduction for four years.
PRODUCTS TO BE MANUFACTURED:
Product 1: beef cuts
Product 2: veal
Product 3: leather
Product 4: bone factor and glue
Product 5: frozen beef
ANNUAL CAPACITY: 100,000 head
Product 1: 24,000 tons
Product 2: 8,000 tons
Product 3: 500,000 tons
Product 4: 750 tons
Product 5: 180 tons
TOTAL INVESTMENT: Million US $51
FOREIGN COOPERATION SOUGHT:
Joint Venture, Loan Technical Expertise, Management Expertise, Marketing Expertise, Market Access
PROJECT TYPE: NEW, REHABILITATION

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