China reported an outbreak of deadly African swine fever on a huge pig farm part-owned by a Danish investment fund, showing the spread of the virus to modern industrial farms expected to have the best levels of disease prevention…Full Article: Channel NewsAsia Jan 2019

Key Point

  • On 29 December 2018, ASFV was reported in Suihua, Mingshui County, Heilongjiang Province (1,405 pigs culled). This outbreak occurred on the Heilongjiang Asia-Europe Animal Husbandry farm, a Sino-Danish joint-venture that is majority controlled by the state-owned Zhejiang Rural Development Group Co. Ltd.

ChinaAg Comments

  • In October 2017, the first pigs reportedly arrived at the Heilongjiang Asia-Europe Animal Husbandry pig farm project.
  • In June 2017, construction began on Heilongjiang Asia-Europe Animal Husbandry, Sino-Danish pig breeding and processing joint venture in Mingshui County, Heilongjiang Province. Major investors in the pig JV included Denmark’s Investeringsfonden for Udviklingslande (IFU, a private equity/venture capital firm), and the Chinese firms of Zhejiang Rural Development Group (lead investor), Hangzhou Jie Dao Investment Management, and Heilongjiang Green Agricultural Development. Zhejiang Rural Development Group is reportedly a subsidiary of Hunan Dakang Pasture Farming (SHE:002505), which is itself a subsidiary of Shanghai Pengxin.
  • In May 2017, Shanghai Pengxin Group announced it would establish a soybean production factory (~10 million MTs annual capacity) in Brazil by the end of 2017. The soybean processing factory will Shanghai Pengxin’s third major investment in Brazil (Fiagril in April 2016 and Banco Indusval & Partners in June 2016). According to the Deputy Chairman of Shanghai Pengxin, going forward in Brazil, the company will focus on animal protein and vegetable protein products.
  • In November 2016, Danish Crown (pork processor) announced plans to build a pork processing factory in Shanghai. Danish Crown would invest USD 44 million on the pork and beef project. At the time, Danish Crown was a raw material (pork) supplier to China, exporting pork, pig toes, ears and tails.
  • In April 2016, Hunan Dakang Pasture Farming (owned by Shanghai Pengxin) purchased a 57% stake in Brazil’s Fiagril (a major trader of soybeans, corn, biodiesel, and glycerin) for US$286 million. During the same month, the Australian government preliminary vetoed the sale of S. Kidman and Co. to Shanghai Pengxin once again. Shortly thereafter Shanghai Pengxin withdrew its bid.
  • In September 2015, Denmark’s S. A. Christensen & Co. (SAC), a milking equipment manufacturer, shipped equipment to China to help establish a demonstration pilot farm. The Danish-Chinese demonstration farm would be based in Heilongjiang province and should be operational by 2016. Arla Foods, a major Danish dairy firm, will participate in the project.
  • In April 2014, China and Denmark signed five agreements that focused primarily on Chinese imports of Danish pork (e.g. sausage), poultry, and dairy products.
  • Founded in 1988 and headquartered in Shanghai, Shanghai Pengxin owned more than 40 subsidiary companies as of 2015.  The conglomerate has businesses in real estate, mining, agriculture, and private equity.

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