Last checked at 20 Feb 2009 07:00
For immediate release 20 February 2009
Genus plc
("Genus" or "the Company")
Business Expansion in China
Genus, a world leading animal genetics company, is pleased to announce significant advances in its strategy for expansion in China with progress being made in both the bovine and porcine sectors. These initiatives represent major steps forward in the Company's strategic focus on growth in emerging markets whilst maintaining its leading status in the developed world.
Joint Venture with Leading Chinese Dairy
Genus has made an important breakthrough in its strategy to enter the local market in China. An agreement in principle has been made with Mengniu, the market leading Chinese dairy company, to establish a joint venture to produce elite bovine genetics in China. The local semen that will be produced will be marketed and sold in China to Mengniu's substantial existing farmer supplier base through already established distribution channels.
Mengniu produces, markets and distributes a wide range of dairy products throughout China, including Hong Kong and Macau, and operates from 23 production bases that have an annual total output of approximately 4.5 million tons of dairy product. Mengniu's contract farmers supply milk from almost twice the number of cows that comprise the UK market. Mengniu was founded in 1999, is listed on the Hong Kong Stock Exchange and now has a market capitalisation of approximately £1.5bn.
The joint venture will be confirmed by a formal agreement and in anticipation of the formation of the joint venture, Genus is transferring 14 progeny tested bulls from its Australian stud to China as well as a quantity of semen from the USA to represent opening stock.
Increased Porcine Capacity in China
The new production nucleus farm is expected to commence activities in October 2010 and when completed Genus will have established sufficient production capacity to enable its customers to breed an estimated 17 million pigs per year in China. This represents almost twice the whole UK output for pigs.
For further information, please contact:
| Genus plc | Tel: 01256 345970 | |
| Richard Wood, Chief Executive | ||
| Martin Boden, Finance Director | ||
| Buchanan Communications | Tel: 020 7466 5000 | |
| Charles Ryland | ||
| Isabel Podda | ||
| Jennie Spivey |
About Genus
Genus creates advances to animal breeding through biotechnology and sells added value products for livestock farming and food producers. Its non-genetically modified organism technology is applicable across all livestock species but is only commercialised by Genus in the bovine and porcine farming sectors.
Genus' worldwide sales are made in seventy countries under the trade marks "ABS" (dairy and beef cattle) and "PIC" (pigs) and comprise semen and breeding animals with superior genetics to those animals currently in production. Customers' animals produce offspring with greater production efficiency, milk and meat output and quality and use these to supply the global dairy and meat supply chain.
The Group's competitive edge has been created from the ownership and control of proprietary lines of breeding animals, the biotechnology used to improve them and its global production and distribution network.
Headquartered in Basingstoke, England, Genus companies operate in 30 countries on six continents, with research laboratories located in Madison, Wisconsin, USA.