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Yuhe continues expanding day-old-chick production

Yuhe International Inc., a major supplier of day-old chickens raised for broiler production in China has completed the construction of a new breeder farm, bringing Yuhe's total number of breeder farms to fourteen.

The new breeder farm covers an area of 142 acres (57.5 ha). From the local government, Yuhe acquired the land use rights for 50 years for a total of RMB 14.2 million (USD $2.1 million).
 
Yuhe intends to add approximately 55,000 parent breeders to the new breeder farm on or before December 30, 2009, which will increase the company's total capacity of parent breeders to 1,205,000 birds.
 
More farms under construction
There are three additional new breeder farms under construction, one of which is expected to start operation after mid January 2010, with the other two to be completed by March 2010.
 
In addition, Yuhe plans to introduce a new hatchery with 40 sets of hatchers by February 2010.
 
"Our new breeder farms will allow us to further expand production of day-old broilers in order to meet China's growing demand for chicken," said Zhentao Gao, CEO of Yuhe.
 
"As with our existing facilities, these farms will use sophisticated imported equipment and employ our high-quality production methods. We are confident that these facilities will come online as planned and enable us to achieve our 2010 production target of 150 million day-old broilers."
 
Yuhe International was founded founded in 1996, and is the second largest day-old broiler chick producer in China.
 
Yuhe has two operational subsidiaries, Weifang Yuhe Poultry Co. Ltd. and Weifang Taihong Feed Co. Ltd. which largely supplies the Company's internal demand for chicken feed.
 
Currently, 90% of the Company's sales of day-old broilers are in Shandong province through 28 local agents there. There are 10 other sales agents in adjacent provinces.

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