Cargill to set up integrated broiler poultry project in China

American agribusiness company Cargill is constructing a $250m integrated broiler poultry project in Chuzhou city, Anhui province, China, in an effort to strengthen its presence in the country.

The integrated broiler facility, which is being built over an area of 350ha near the Yangtze river basin, will complement Cargill’s current meat imports business.

It will feature 12 pullet and breeder farms, a feed mill, a hatchery and a primary processing plant.

Speaking at an industry event in Thailand, Cargill China animal protein business head Chris Langholz said that the construction is currently ongoing and the facility is expected to start operating by July 2013.

"We will raise 65 million birds a year and it will be one of the biggest integrated plants in China," Langholz added.

China, which currently accounts for 50% of worldwide pork production and consumption, has witnessed a rapid expansion in the poultry industry, which is growing at a rate of 5% to 6% per year.

In China, Cargill operates about 52 locations and is involved in the following businesses – agriculture services, trade and processing of agriculture products, food ingredients, financial and risk management, and industrial.

Cargill’s latest project comes nearly two years after it opened manufacturing facilities in China to strengthen its food ingredients business.

In March 2010, Cargill opened a flavour manufacturing plant in Pinghu, and also partnered with Alking Bioengineering to set up a plant in Gedian Hubei for the production of arachidonic acid (ARA) – an ingredient used in infant food products.

Minneapolis-based Cargill, a privately held corporation, has been eyeing expansion although it has seen its worst full year earnings in fiscal 2012, reporting a significant drop of 56% to $1.17bn, due to volatile market conditions and drought in the US.

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Image: The integrated broiler facility, which is being built in Anhui province, China, will complement Cargill’s current meat imports business. Photo: Cargill.