Zhongpin reports record third quarter results
Zhongpin, the Chinese meat and food processing company
has reported its third quarter financial results.
"Our exceptional financial performance in the third quarter resulted from
the strong demand for our high-quality products and the additional capacity
added by the Luoyang plant, which came on line at the beginning of the third
quarter. During the quarter, China's hog industry benefited from the
government's constructive policies, resulting in an increased supply of hogs and
a moderation in live hog prices," commented Mr. Xianfu Zhu, CEO of Zhongpin.
"As Chinese consumers continue to place more focus on food safety
issues, we believe Zhongpin's reputation as a high quality, premium brand
provides us with a significant competitive advantage. As we enter our peak
season in the fourth quarter, we believe we are poised to benefit from increased
capacity, strong demand and our expanding retail distribution
Zhongpin continues to move forward with its expansion plans and
is currently building a chilled and frozen pork facility in Shangqiu City in
eastern Henan Province, which is expected to begin operations in January of 2009
and will expand Zhongpin's annual capacity for chilled and frozen pork by 80,000
"We believe the market fundamentals of China's pork
industry remain favourable despite the recent global economic slowdown. Pork
consumption in China's rural and urban areas is expected to increase due to a
growing demand for high quality and safe food products. Zhongpin's sophisticated
quality control standards, advanced cold-chain logistics, and hygienic
production processes instil consumer confidence regarding the quality of our
"In addition, the Chinese government's recent reforms designed
to improve the overall health of the rural economy should provide additional
market opportunities for Zhongpin by fostering the development of value-added
agricultural products, modernizing the agricultural industry and increasing the
living standards of farmers," said Zhu.
Click here for the free Pig Progress
To comment, login here
Or register to be able to comment.