Weishan Fine Beef Intensive Processing Project

Project Name

巍山县精品肉牛精深加工项目

Weishan Fine Beef Intensive Processing Project

Project

Industry

Food and Consumer Goods Manufacturing Industry

Project Site

Dianzhong Industrial Zone, Weishan Industrial Park, Weishan County

Project Overview

The fine beef intensive processing project in Weishan County is a major investment promotion project launched by the Dali State Government on the basis of its industrial foundation and its insight on market demand. It aims to reinforce an important link in the entire beef cattle industry chain, extend the industry chain, and give full play to its lever effect in order to stimulate the local economy.

Project Construction

Content

It is planned to cover an area of 150 mu in which five major spatial carriers will be built, namely professional slaughter and division workshops, intensive processing workshops, integrated office buildings, warehouses and logistics houses and other public supporting facilities.

Supporting Conditions

1. It enjoys a good industrial environment. Weishan is a key county included in the regional plan of the national superior region for beef cattle in Yunnan province. Relying on scientific prowess and leveraging local industrial advantages, governments at all levels made continuous efforts to improve industrial supporting facilities and worked jointly to consolidate the foundation for the further improvement of production level in a standardized, scaled and professional manner.

2. The industry has a solid foundation. With great efforts made and years of development, Weishan County's beef industry under the "one county, one industry" policy is standing out with its advantages, and the degree of industrialization has gradually increased. In 2019, both the beef cattle production and marketable fattened stock ranked first in Dali Prefecture while the breeding stocks ranked second. The beef cattle industry has become a pillar industry of its rural economy;

3. the breeding species are superior. Weishan County has the largest breeding cow population in the province. It is a demonstration county in the province for the frozen semen improvement of beef cattle and the promotion of comprehensive supporting technology as well as a provincial training base for the frozen semen improvement of beef cattle. In 2019, the coverage rate of fine breed reached 80%. The number of Yunling cattle propagated ranks among the top in Yunnan Province. Yunling cattle has the characteristics of low feeding difficulty, early sexual maturity, fast early growth, and short slaughter cycle. It can be used to produce the best A5 grade snowflake beef, which is comparable to Japanese Kobe beef;

4. It enjoys sufficient conditions for development. The park is well prepared with roads, water supply, electricity, drainage, heat, telecommunications and land leveling, as well as standardized plants that are ready to be used.

Investment Estimate and Fund Raising

Investment estimation: The estimated total investment is RMB 230 million.

Fund raising: Self-raised by enterprises or and other ways of financing.

Preferential Policies Applicable

Several Opinions of the the CPC Central Committee and the State Council on Further Promoting the Structural Reform on the Supply Side of Agriculture and Fostering New Growth Drivers for Agriculture and Rural Development (Central Document No. 1, 2017)

Regulations on the Prevention and Control of Pollution from Large-scale Livestock and Poultry Farming (Order No. 643 of the State Council of the People's Republic of China)

National Beef and Mutton Production Development Plan (2013-2020)

Opinions of the Yunnan Provincial Committee of the Communist Party of China and the People's Government of Yunnan Province on Accelerating the Leap-forward Development of Mountain Animal Husbandry (YF[2014] No. 15)

Three-year Action Plan for Beef Cattle Industry in Yunnan Province (2018-2020)

Implementation Opinions of the People's Government of Dali Prefecture of the CPC Dali Prefecture on Accelerating the Leap-forward Development of Mountain Animal Husbandry (DF[2015] No. 8);

The 13th Five-Year Plan for the Modernization of Plateau-featured Agriculture in Dali Prefecture (2014-2020)

The 13th Five-Year Plan for the Development of Animal Husbandry in Weishan County (2016-2020)

Outline of the 13th Five-Year Plan for National Economic and Social Development of Weishan Yi and Hui Autonomous County (2016-2020)

Three-year Action Plan for Poverty Alleviation by Plateau-featured Agriculture in Weishan County (2018～2020)

Market Prediction (Analysis)

China is the country with the fastest growth in beef consumption in the world, which relies heavily on imports because domestic beef production cannot meet the growing market demand. China’s becoming the world's second largest beef importer makes it imperative to develop the beef cattle industry, which also enjoys huge potential.

Profit Model and Preliminary Benefit Analysis

The project has remarkable economic benefits with strong profitability and rapid recovery of funds after investment, the ability to well balance its profit and loss. After reaching production capacity, it is expected that the average annual after-tax profit can reach about RMB 60 million, and the investment recovery can be completed in 4 years.

Risk Analysis

Overall controllable risks with low coefficients.

Cooperation Pattern

It is planned to attract inves tment with joint venture and sole proprietorship.

Contact Information

Contact entity: Investment Promotion Bureau of Weishan County

Address: No. 12, Dashuigou Street, Nanzhao Town, Weishan County

Tel.: 0872-6124866   0872-2332168