TMR Feed Processing and Distribution Center Project with Daily Output of 1,000 tons in Dehong Area of China (Yunnan) Pilot Free Trade Zone

Name

中国（云南）自由贸易试验区德宏片区日产1000吨TMR饲料加工与配送中心项目

TMR Feed Processing and Distribution Center Project with Daily Output of 1,000 tons in Dehong Area of China (Yunnan) Pilot Free Trade Zone

Industry Involved

Agricultural and sideline food processing industry

Site

Agricultural and Livestock Products Processing Park in Ruili Border Economic Cooperation Zone (Nongdao Town)

Type

New

Project Description

With the great advantage that four ministries and commissions of China designate the Nongdao passage of Ruili Port as one of the import and export passages for the slaughtering beef cattle, and based on the industrial orientation that Ruili Border Economic Cooperation Zone (Nongdao Town) actively promotes the development of the agricultural and livestock products park and undertakes the construction of relevant industrial chains, it is planned to introduce investors to build TMR feed processing and distribution center with a daily output of 1,000 tons in Ruili to meet the market demand of feed in Ruili and Southwest China.

Content

Construction scale: The proposed floor area is 39,400 m², including 12,000 m² for workshop, parking area and weighbridge, 3,000 m² for warehouse, 2,400 m² for silage silo, 22,000 m² for raw material yard and road. 38 sets of feed processing equipment, 20 sets of auxiliary equipment, 12 sets of inspection and testing equipment and 20 distribution vehicles are planned.

Construction period: 2 years (August 2020-August 2022)

Land area: 70 mu

Supporting Conditions

1. Advantages and opportunities: ① subtropical monsoon climate, with abundant rainfall, sufficient heat and humid land, suitable for the cultivation and growth of feed crops; ② There is a large amount of land suitable for the cultivation of feed crops at home and abroad; ③ Relying on the cross-border pilot project of 500,000 beef cattle, it is proposed to build a breeding base with an annual output of 100,000 beef cattle. Thus, there is extremely-large demand for feed; ④ Nongdao is adjacent to Myanmar on three sides, with four passages, which is convenient for entry and exit; ⑤ mature feed production technology and scientific formula from Dakang Group.

2. Associated industries: The proposed project is matched with the cross-border pilot project of 500,000 beef cattle, the breeding base with annual output of 100,000 beef cattle and the overseas breeding base. This is conducive to forming an industrial chain and promoting the development of industrial cluster. At the same time, this project can drive employment, optimize the adjustment of industrial structure and increase local economic income. The water, electricity, roads, networks and other infrastructures in the project area are perfect, which fully meet the conditions for construction.

3. Early preparations: Market research, strategic discussion, planning, government-enterprise docking, etc. have been completed in the early stage of the project. The feasibility report, land formalities and environmental assessment are under preparation at present.

Investment Estimate and Fund Raising

Investment estimate: The total investment of the project is CNY 300 million, including fixed asset investment of CNY 270 million and initial working capital of CNY 30 million.

Fund raising: self-raising for all

Preferential Policies Applicable

Fund subsidy for standard workshop construction, "five-year free and five-year half" in terms of tax, policies related to green food, policies for processing of agricultural products in their producing areas, substitute planting policies, etc.

Market Prediction (Analysis)

After the implementation of the project and the realization of the target output, the daily feed output will reach 1,000 tons, which can meet the daily feed demand of 25,000 cattle or 140,000 sheep. Based on tens of thousands of cattle in domestic and overseas isolation farms, 100,000 beef cattle raised in domestic and overseas breeding bases and a larger-scale sheep breeding base, the current feed production is not enough for internal supply, so there is no need to sell feed to the market. Due to the planting guarantee, there will be no worries in the raw material supply market.

Profit Model and Preliminary Benefit Analysis

Profit model: The slaughter-processing cross-border project drives the breeding industry which then drives feed production. The added value of feed products subtracting costs generates the profit points.  After the implementation of the project and realization of the target output, the annual output of concentrated feed and roughage will reach 330,000 tons, the new output value will reach CNY 720 million, the profit will be CNY 129.6 million, and 200 new jobs will be created, which will drive more than 10,000 feed planting farmers.

Risk Analysis

Main risk points: impact of large livestock epidemic on breeding industry, short-term uncertainty of market supply and demand, instability of feed planting income, industry competition, etc. Countermeasures: Comprehensively implement epidemic prevention and control and strengthen preventive measures; guarantee the acquisition of raw materials in a diversified way; increase technology investment to ensure product quality and make brand bigger and stronger.

Cooperation Pattern

Cooperation

Contact Information

Contact Unit: Ruili Penghe Agricultural Food Development Co., Ltd.

Contact Person: Wang Yugang

Tel.: 18856956100

Fax: 0692 -3038666

E-mail:2753379009@qq.com