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China slaughter plan seen helping listed meat companies

  • Published 12 Jan 2010

A new national-level plan to close down "backward" abattoir capacity over the next five years appears set to enhance the prospects of several listed meat processing companies. We think companies such as Zhongpin (HOGS:Nasdaq), Yurun (1068:HKG) and Henan Shuanghui (000895:SZ) may expand market share.

A Ministry of Commerce industrial development plan states that China plans to reduce manual and semi-mechanised slaughterhouse capacity by 30% by 2013 and 50% by 2015. In large cities, it will strive to eliminate 80% of backward capacity.

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12 Jan 2012

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