Genus PLC (GNS.L, GNS.L) said that its porcine genetics division signed joint venture agreement with Shaanxi Yangling BeSun Agricultural Group Co. or BeSun, a integrated pork producer in China, to partner in the operation of a 4,250 sow nucleus farm in China's Shaanxi province.
The JV expands Genus' porcine business in China and is in line with its new corporate strategy. Genus intends to increase its share of large market from its small existing market share of c.1%.
Genus stated that it would become a 49 percent partner in the JV through a cash investment of around 8.7 million pounds.
Further the company noted that it would provide over the next nine months pure line porcine stock from PIC's global high health pyramid to stock the farm.
The JV would produce grandparent sows with the output from the farm being used proportionally by the JV partners, nearly 50% each with BeSun using its proportion in its multiplication programme and Genus' share of the output providing important additional volume to support its growing sales of breeding animals in China.
by RTT Staff Writer
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