Business
Porcine Multiplication Agreement in China
Porcine Multiplication Agreement in China.
About this update from Genus Plc
[{"type":"text","content":"\n \nRNS Number : 6735Q Genus PLC 03 September 2014 \n \n\n\n\n\n\nFor immediate release\n\n\n3 September 2014\n\n\n\n\n \nGenus plc\n('Genus' or the 'Group')\n \nStrategic Porcine Multiplication Agreement in China\n \n3 September 2014 - Genus plc (LSE: GNS), a leading global animal genetics company, is pleased to announce a new strategic agreement with River Stone Farm (Shandong) Co., Ltd ('Riverstone') to become the Group's first commercial multiplier in China. Riverstone is a joint venture between Black River Capital Partners Food Fund Holdings (Singapore) Pte Ltd ('Black River') and Pipestone System, a leading US pig management company. Under the terms of the multi-year agreement, Genus's porcine genetics division, Genus PIC, will exclusively stock and sustain Riverstone's new pig production project in China, with a total anticipated herd size of 24,000 sows. \n \nChina is the largest pork market worldwide and the agreement with Riverstone positions Genus for additional growth by providing significant new capacity without material upfront investment and with lower commodity risk exposure. It also enables the Group to develop its royalty revenue model in China, providing resilient revenue streams.\n \nRiverstone's project comprises four breeding farms based in Shandong, eastern China, capable of producing in total more than 600,000 pigs for market every year. The first module of 6,200 pigs will be ready for stocking in the first quarter of 2015 and will produce grandparent and parent gilts for both Genus and Riverstone as well as supplying the market with prime slaughter pigs. As a result of the agreement, Genus will be able to access more than 10,000 grandparent gilts a year for sale to large-scale integrated producers. \n \nThe project also features a dedicated artificial insemination stud to house sire line boars for commercial pig production and dam line males for great-grandparent and grandparent matings. The genetic profile of the herd will be monitored and managed using Genus PIC's proprietary software and database to maximise the effectiveness of the genetic improvement programme. The database is the largest of its kind with tens of millions of pedigree, performance and genomic data points supporting accelerated genetic progress.\n \nKarim Bitar, CEO of ...