CHINA - Astika Holdings is to enter poultry farming and the food sector, continuing its acquisition strategy in China.
Astika Holdings, Inc., a strategic acquisition company of service, agriculture and industrial companies from the Nantong Region in China and New Zealand, has announced that it is entering negotiations to acquire Nantong Poultry Farming Co. Ltd., in the food-service sector.
Nantong Poultry Farming Co. Ltd. is engaged in poultry breeding, farming, selling, disease control and technological support in the food-service sector in China.
Currently, the company’s factory maintains operations of 35,200 square metres (8.7 acres) with over 50,000 poultry of different species for sale in the food service sector.
Nantong Poultry Farming has received rewards for its technology and for 'One of the Best 50 Poultry Companies in China'. Recently, in order to increase volume and control costs, Nantong Poultry Farming subcontracted part of its poultry farming business to over 200 local retail poultry farmers.
Using its social network to sell its pigeon eggs throughout Nantong and Shanghai in 2013, Nantong Poultry Farming reached sales of 300 million pigeon eggs and created over 50 new job positions.
Mark Richards, the director for Astika Holdings commented: “Nantong Poultry Farming Co. Ltd., is part of Astika’s ongoing strategy to add value through successful project development and opportunistic high growth sector acquisitions with efficient operations, while maintaining a low risk profile through project diversification, astute financial management and operations in secure jurisdictions."
In the five years through 2013, revenue for the poultry farming industry in China has been growing at an average annualised rate of 7.8 per cent to $75.8 billion, according to IBISWorld. Industry revenue has been growing steadily due to rises in poultry prices as well as output growth.
Total poultry meat output is expected to increase 3.1 per cent to $20.5 million tons in 2013, while revenue is set to grow 8.4 per cent. Revenue in 2018 is forecast to reach $106.5 billion.
China is also the largest egg producer in the world, accounting for over 40 per cent of global production.
In the decade to 2018, industry value added is expected to grow at annualised rate of 8.4 per cent, similar to general economy growth.
With consolidation and the emergence of larger poultry and egg farms, the number of farms in this industry is forecast to continue to decline over the next five years.
TheMeatSite News Desk