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Shandong Penglai Demonstration

1. Name of the Project:
Broiler Chicken Breeding, Slaughtering and Processing

2. Name of the Production Unit:
Shandong Penglai Demonstration Farm of Fine Breed Broilers under the Ministry of Agriculture

3. A Survey of the Production Unit:
Beginning in 1985, Shandong Penglai Demonstration Farm of Fine Breed Broilers under the Ministry of Agriculture is an enterprise which makes broiler production, transportation and marketing a coordinated process. So far it covers an area of 410,000 square meters with the fixed assets being 120 million yuan (RMB). It includes 7 breeding chicken farms, 2 commodity chicken farms, a feed processing plant, a hatchery and a slaughter & refrigeration factory, raising 210,000 pairs of breeding chickens through out the year. The Farm introduced from ROBINSON in England the feed processing equipment with the capacity of processing 5 tons pellets per hour; from FUNKI in Denmark and BUCKEYE in England 6 sets of hatchery with the capacity of 120,000 eggs; from STORK in Holland the slaughter line with the capacity of killing 2,000 chickens per hour. The technology of "Whole Course Cage-Raising of Broiler Breeder" advanced by the technicians of the Farm was awarded the "Technology Progress Prize" in Shandong Province. Now the Farm has adopted the technology of cage-raising and artificial insemination.

There are 800 people in the Farm including 150 technicians. It has priorities of advanced technology and equipment, scientific management and good economic benefits. The annual profit is 10 million yuan for 3 consecutive years. In 1993, it was given the title of "Best Enterprise" in the domestic poultry industry.

4. Contents of the Project:
To extend and improve the original production line so as to make the production joints more reasonable and obtain the best economic results.

A. Extend the Cutting Workshop and the Cold Storage
It is planned that capacity of slaughter and processing is up to 10 million chickens and the capacity of the Cold Storage will be up to 1,500 tons from the former 500 tons.

B. Three commodity chicken farms will be newly-built and the annual output will be 4 million chickens

5. Market Prospects:
The consumption of chicken in the world is going up every year and the Chinese market is more potential. The labor force is cheap in China and so the costs of breeding chicken are comparatively low. Especially the product processing is more advantageous. With the advanced technology and equipment and scientific management, the Farm is capable of producing the high quality of products. The Future is bright.

6. Infrastructure:
Penglai is an open coastal city with well-developed economy and air, land and water transport facilities and adequate water resources and power. The Farm borders on the No.206 State Highway with complete infrastructures. The environment for investment is favorable.

7. The Amount of Investment and Money Raising:
It is estimated that the total amount of investment is 7 million US dollars, among which 3 million dollars is used for equipment purchase and construction, 4 million dollars for production and circulation. Foreign capital investment (4 million dollars above) is expected.

8. Economic Results:
After the project is finished , the annual output of breeding eggs will be 24 million pieces, the capacity of hatching will be 10 million chickens, and the profit will be 16 million yuan. The annual output of the feed processing plant will be 30,000 tons with the profit of 1,5 million yuan. The number of commodity chicken will be up to 4 million with profit of 5 million yuan. The capacity of slaughter and processing will be 10 million chickens with profit of 21 million yuan. The total profit of the whole farm will be above 43.5 million yuan. The investment recovering period is 3 years.

9. Cooperation Forms:
A joint-venture with foreign companies is expected to be established.