Chinese meat processor Zhongpin said it had a “very good start to the year” as it recorded an increase in first-quarter net income.
The group said on Friday (6 April) that, for the three months ended 31 March, net income was up 27% to reach US$16.9m.
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Company chairman and CEO Xianfu Zhu said: “Our first quarter was a very good start to the year 2011. Our revenues increased on both higher average prices and higher tonnage, although we saw somewhat lower pricing in some product lines.”
The company said that China’s vice prime minister Hui Liangyu visited its operations on 21 March. Zhongpin said that Hui gave “high praise” for the company’s food safety, farming cooperative model, product development, industrial layout and cold-chain logistics.
The meat processor said the visit “signifies an important opportunity for Zhongpin to expand its market share and gain favourable government policies”.
The company opened the first phase of new facility in Tianjin during January, with the second phase set to open during the second quarter.
It said it is investing around US$61.5m in a slaughtering and processing plant, a low temperature prepared pork plant, a logistics centre and a research and development centre in Nong’an county, Changchun, Jilin province.
It is also investing some $63m in building a production facility, warehouse, and distribution centre in Taizhou, Jiangsu province and some $58.5m in a new production, research and development, and training complex in Changge, Henan province.
