Guangnan Wenshan Cattle (Gaofeng Cattle) Industrialization Development and Construction Project

Project Name

广南县文山牛（高峰牛）产业化开发建设项目

Guangnan Wenshan Cattle (Gaofeng Cattle) Industrialization Development and Construction Project

Project

Industry

Modern Agriculture with Plateau Characteristics

Project Site

Agricultural Products Processing Park of Zhulin Town in Guangnan County

Project Overview

Guangnan is a major animal husbandry county in Yunnan Province. It has been listed as the national county with advantages in beef cattle production and Yunnan's demonstration county of agriculture with plateau characteristics. In 2019, it was included in Yunnan's "one county, one industry" policy to develop into a county specialized in breeding Gaofeng cattle. In 2019, there were 230,400 cattle in stock and 99,000 beef cattle put on the market. The beef output was 10,000 tons with an output value of RMB 1.03 billion, accounting for 42.0% of the animal husbandry output value and 15.1% of the total agricultural output value. The stock of large-scale breeding reached 22,000, accounting for 15.2%. The beef cattle industry is the leading agricultural industry of the county. The number of beef cattle in stock ranks first in the prefecture and second in the province. The beef cattle breed of Guangnan is Wenshan cattle, commonly known as Guangnan Gaofeng cattle. The county is the breeding area and main producing area of Wenshan cattle. The county has built a national core beef cattle breeding farm and has initially established a breeding system of fine breeds in 15 families, so it has the basic conditions for project construction. The project plans to promote the industrialization of Gaofeng beef in Guangnan County, make full use of the unique local advantages in high-grade and green products, explore grass and fodder resources on hills and slopes, create an industrial chain for Gaofeng beef, build Gaofeng beef into a well-known high-end brand at home and abroad and Guangnan into a model county for efficient beef cattle breeding and the largest beef cattle industry base in the province, and lay a solid foundation for building a world-class "green food brand" for beef cattle.

Project Construction

Content

Four new bases for fattening up 5,000 beef cattle and a farm for 10,000 will be built in Zhulin Town, Bamei Town, and Zhetu Township. A standardized cattle house of 160,000 m², an ensiling and ammoniation facility of 100,000 m², and auxiliary facilities for manure treatment, organic fertilizer production lines, and office buildings will be built. A slaughterhouse with an annual capacity of 100,000 beef cattle with intensive processing lines and an area of 50 mu will be erected in the Agricultural Products Processing Park of Zhulin Town (near the high-speed rail station). Facilities and equipment for butchering and cutting, intensive processing, cold chain and logistics will be established, high-, medium- and low-grade beef food will be developed, and the agricultural industry of the county will be built into one with "Green Food Brand."

Supporting Conditions

The county has a utilizable grassland area of 150,000 hectares, an annual output of 1.803 million tons of fresh grass, and a theoretical grazing capacity of 150,000 livestock units. There are 60,000 hectares of fields in the slack winter season that can produce 9 million tons of fresh grass, and a grazing capacity of 730,000 livestock units. There is an area of 100,000 hectares for growing grass and cattle under trees in the orchard. It can produce 1.5 million tons of fresh grass with a grazing capacity of 120,000 livestock units.

A high-speed railway runs across the county, equipped with Guangnan County Station and Zhulin Station.

The county is also crossed by highways including G323, G80 (Guangzhou-Kunming Expressway), S19 (Guangnan-Xingjie Expressway), and S208. It is about 134 km or a 2 hours' drive from Wenshan Puzhehei Airport.

Investment Estimate and Fund Raising

The investment is estimated to be RMB 1 million.

Fund raising: Self-raised by enterprises, bank loan, and industrial supporting fund.

Preferential Policies Applicable

(1) Basic subsidy for cow; (2) Subsidy for reconstruction and expansion of farm infrastructure; (3) Subsidy for purchase and storage of silage corn of complete stools; (4) Subsidy for loans and interests (5) Subsidy for brand building.

Market Prediction (Analysis)

With the growing urbanization rate, per capita disposable income, and awareness of health in China, consumers can afford beef at high average prices. The prevailing Western, Japanese and Korean cultures have helped popularize their cuisine in China such as steaks and roast meats. More scenes for consumption of beef and entrails are seen, and the Chinese people are learning how to cook beef at home. Guangnan Gaofeng beef has been highly acknowledged in and out of the industry for its unique flavor and taste and intense marbling. The snow beef of Yunnan Guduo Company enjoys a market price of up to RMB 3,000/kg. In 2019, the beef was sold at RMB 71.72/kg, and cattle RMB 30.71/kg in Yunnan. The cattle of Guangnan was sold at RMB 32/kg on average and RMB 36/kg to the maximum. The price of beef has been on the rise with relatively small fluctuations, which is clearly different from livestock products such as pigs and poultry. The beef is in short supply around the world, and the case will be seen for a long time in China. To base the estimation on economic income, the per capita beef consumption will reach 9.42 kg in 2020 in China, which indicates a shortage of 7.18 million tons. The production-demand ratio will double that of 2019. Therefore, the beef industry sees a rosy prospect.

Profit Model and Preliminary Benefit Analysis

After the project is completed and put into production, 30,000 more cattle will be slaughtered per year, elevating the annual sales to RMB 450 million and the profit to RMB 84 million. A total of 100,000 cattle will be slaughtered every year, with an output value of over RMB 2 billion for processing and a profit of about RMB 200 million. The 50,000 farmers in the county will be encouraged to raise pigs and cattle, and the average household income will increase by more than RMB 5,000.

Risk Analysis

Major risks come from serious and general diseases when raising the cattle.

Cooperation Pattern

Sole proprietorship, joint venture and cooperation.

Contact Information

Contact Authority: Guangnan County Bureau of Agriculture, Rural Affairs and Science and Technology

Contact Person: Zheng Chuande

Tel.: 0876-5150240 (office)

0876-5156495 (science and education department)

Fax: 0876-5157572

E-mail: yngnnyj@126.com