DaChan Food to gobble up processors
LisaYu; Monday, July 21, 2008
DaChan Food (Asia) (3999), already one of the largest poultry processors in the mainland, said it aims to further increase its market share in chicken meat production through acquisitions and expanding capacity.
"We hope to have 500 million to 600 million chickens slaughtered a year by 2015," said chairman Mark Han Jia-hwan. "We plan to acquire about two medium-sized chicken meat production companies each year."
For 2008, the company aims to process 130 million chickens, up 15 million from last year. It is the largest raw chicken meat supplier to KFC in the mainland.
DaChan, which also manufactures and markets livestock feed, plans to buy chicken meat production lines with an annual capacity of 20 million chickens slaughtered and expand their yearly capacity to 30 million, Han said. "This strategy can help expand the company while saving the costs of getting licenses," he said.
The company is also targeting to achieve a gross profit margin of 8 to 11 percent in feeds and 20 to 25 percent in processed foods next year. Han said the firm expects to achieve a 8.7 percent gross profit margin this year. It posted a 8.5 percent margin last year, and 8.7 percent in the 2008 first quarter.
Revenues from processed foods accounted for less than 10 percent of total turnover last year. Han said he wants to expand this segment through new projects in Shandong, Tianjin, and northeast China.