-interview with Mr Wuyide, Board Director of Henan Chuying Agro-Pastoral Co. Ltd
Henan Chuying, founded in 2003, has rapidly developed into a reputable large hog farming enterprise. In 2007 to 2009, Chuying’s revenue increased by 61.66% annually, and net profit increased by 114.96% annually. In recent, Chuying steps to the way of IPO in SMEs board and begins soaring. Mr Wuyide, Board Director of Henan Chuying Agro-Pastoral, talked about the topic with the reporter of BOABC Viewpoints.
What’s experience of Chuying developing so fast in recent years?
The rapid development of Chuying Agro-Pastoral firstly attributes to choosing the industry most traditional but also having immense potentials: agriculture. Hog farming industry has great potential that offers prospect to Chuying. Meanwhile, Chuying creats a successful operation model, which enables the corporation to develop into a powerful hog farming enterprise.
In detail, Chuying combines the model of “corporation+farmers” with the model of “corporation+production base+farmers”. It thoroughly solves the bottleneck of epidemic prevention and cut cost overall. The core of the new model is breeding by stages, streamlining, scattered layout, unified management, sharing complementary strengths and achieving win-win.
Also, the company mainly employs farmers at the age of 40-50. They rarely work out of countryside, but have rich experience and strong sense of responsibility.
In Chinese pork market, price fluctuates dramatically. As a large hog farming enterprise, how does Chuying take measures to react to the fluctuation?
Any industry field has its own law, prices of agricultural products fluctuate regularly. Based on our demands for development and market law, we could adjust product mix and extent industrial chain to control risk.
Would you describe Chuying’s future strategies?
Going public is required by enlarging scale. Chuying will expand business in hog farming, increasing hog inventory from current 700,000 to 3.6 million in 2014 and 5 million in 2015. The annual increase rate is expected to reach over 50%.
Of course, with production scale enlarging and business growing, we will explore to construct a whole industry chain. Based on hog farming, Chuying plans to extent and improve the industry chain in next 3-5 years and enter into the slaughtering field at proper time. We will even probably expand business to meat processing in future.
Our president, Mr Hou Jianfang once said that Chuying should construct an entire chain consisted of breeding, feed production, epidemic prevention, hog raising, slaughtering and food processing. At present, we should focus on breeding and farming first to strengthen our advantage in this aspect and forge a solid foundation for expanding business to downstream in future.
