Mr. Dhanin Chearavanont (2nd from left) Chairman and CEO of the Charoen Pokphand Group along with Mr. Yang Xioping (1st from left) Vice President of Agro-Industry Business (China) and Mr. Xia Zhanyi (1st from right) Vice-Governor of Beijing province presided over the opening ceremony of Asia’s largest and most advanced fully integrated layer chicken project in the district of Pinggu, Beijing Province, People’s Republic of China.
The government of China, in collaboration with the Charoen Pokphand Group (CP), has commended the ‘4-in-1’ model as the revolutionary solution to improving the income and livelihood of its farmers. Through the use of CP’s experience, technology and management know-how, the Chinese government is seeking to modernize its rural sector, develop food security and food safety with the fully integrated layer chicken facility worth USD 114 million in the district of Pinggu, Beijing province initiating the movement.
Mr. Dhanin Chearavanont, Chairman and CEO of CP had stated that this project represents another accomplishment for the organization as the Chinese government has bestowed their trust in CP to carry out their vision of developing a ‘Modern Agricultural Village (Xin Nong Cun). The fully integrated layer chicken project named ‘Pinggu 3-million Layer Chicken Project-Charoen Pokphand Group’ and located in the district of Pinggu has employed the ‘4-in-1’ model that brings together 4 parties consisting of the government, Cooperative of farmers, CP and the bank to construct the largest and most advanced layer chicken facility in Asia. The fully integrated layer chicken project has the capacity to raise 3 million layer chickens that will produce up to 54,000 tonnes of eggs annually with a total investment of USD 114 million which 1,608 families from the Cooperative (approximately 5,000 people) will benefit from.
Mr. Dhanin further declared that the ‘4-in-1’model represents an innovative approach by the Chinese government in developing the agricultural sector and in this fully integrated layer chicken facility, the government of Beijing, the Cooperative of farmers and CP had jointly invested to set up the Beijing Guda Agricultural Investment Company to hold capital and property rights of the project. Within this company, the government of Beijing and CP will jointly invest 30% of the project with the remaining 70% invested by a Cooperative of farmers via loans from the Bank of Beijing. Furthermore, the Beijing Guda Agricultural Investment Company had signed with the Beijing Chia Tai Eggs & Food Co., Ltd. (a company in CP) to rent the layer chicken project’s property and its assets as well as operate the entire layer chicken business (inclusive of production and marketing) for 20 years. The use of this model has enabled farmers to become business owners whereby the private company works for them through the rental of property and assets with a guaranteed income defined by all parties. Mr. Dhanin stated that the ‘4-in-1’ model can transform “farmers into business owners and the private company into their employees”.
With the introduction of the ‘4-in-1’ model, all parties involved have benefited from this collaboration. Firstly, the government of China has improved the livelihood of its farmers and raised the standard of its agricultural industry. Secondly, in the agreement between Beijing Guda Agricultural Investment Company and Beijing Chia Tai Eggs & Food Co., Ltd., the Cooperative of farmers will benefit from income raised by the rental of its property and assets worth USD 11.5 million per year. The Bank of Beijing will thereby receive loan interests from their support of the project and CP will benefit from a new production source as well as expand its market into Beijing and nearby cities such as Tianjin.
The fully integrated layer chicken project is located on 129 acres of land in the village of Xifan Gezhuang, sub-district of Yukou, Pinggu district, Beijing province. At present, the fully integrated layer chicken project in Pinggu has been completed and consists of pullet farm, feed mill, 18 closed-chicken-housing-systems that can raise 3 million hens annually, processing and packaging plant as well as a fertilizer production facility made from chicken litter. The layer chicken facility is considered to be the largest and most advanced in Asia, and is the first-of-its-kind anywhere in the world to be constructed all at once at such a large scale.
The fully integrated layer chicken project has also brought in the most advanced equipment from around the world and along with CP’s experience as a leading agribusiness and food organization; this project is considered to be the model for advanced layer chicken business in China. Moreover, each egg produced can be traced back to its origin which raises the efficiency, safety and standardization of egg production that can be consumed locally and abroad.
Apart from the fully integrated layer chicken project in the district of Pinggu, CP has been entrusted by the government of China to develop modern agricultural village projects in other areas such as in the province of Jilin (3 million layer chickens per year/ 1 million swine per year/ 100 million broiler chickens per year), Zhanjiang city, Guangdong province (1 million swine per year/ 100 million broiler chickens / aquaculture farming), Cixi city, Zhejiang province (mixed agricultural farming of vegetables, chicken, etc.).
Feed mill with a capacity to produce 18,000 tonnes per year that supply 18 layer chicken houses in the district of Pinggu, Beijing Province.
Asia’s largest and most advanced fully integrated layer chicken project.
Mr. Dhanin Chearavanont along with executives of the Charoen Pokphand Group visit the fully integrated layer chicken project in the district of Pinggu, Beijing province.
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Charoen Pokphand Group
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