British animal genetics company Genus Plc (LON:GNS) said today that its porcine genetics division PIC had signed a deal to set up a joint venture in China with domestic pork producer Shaanxi Yangling BeSun Agricultural Group Co to operate a nucleus farm.
Genus will invest about GBP8.7m (USD13.7m/EUR11.1m) in cash and will take a 49% stake in the JV, which is being established for the purpose of operating a recently completed 4,250 sow nucleus farm in the Shaanxi province.
Over the next nine months, Genus will supply the farm with pure line porcine stock from PIC’s global high health pyramid. The British company will manage the JV in order to protect its intellectual property.
The joint entity will produce grandparent sows and the farm’s output will be shared by the partners on a 50/50 basis. BeSun will use its portion in its multiplication programme, while Genus’ share will provide the UK firm with important additional volume to support its increasing sales of breeding animals in China.
The creation of this venture will help expand Genus’ own Chinese porcine operations. The move aligns with the company’s new corporate strategy that concentrates on growing important markets like the integrated pork producer segment in the Asian country. Genus noted it is continuing to look for JV opportunities in China so that it could further develop its porcine activities.