The Xiangyao Food Company established in Cangzhou Bohai New Area Zhongjie International Production Zone is looking for cooperation with Dutch dairy brands or dairy technology companies. Below is a summary of their project proposal. For more information please contact the Co-Development Program.

Xiangyao Food Co., Ltd., was established in May 1995 with a registered capital of 30 million RMB. Xiangyao is a dairy enterprise active in cattle keeping, dairy processing and sale. Xiangyao is a famous brand in Hebei Province for its reliable quality, unique taste and high-level service. The company now owns fixed asset of 64.25 million RMB and net assets of 50.80 million RMB. The annual sale revenue in 2008 was 1.2 billion RMB, with a profit of 7 million RMB. Products include pasteurized milk, flavored milk, plain yoghurt, fruit yoghurt, fermented drinks, UHT sterilized milk, milk juice, cream and milk powder for industrial use.

The company has a well-established marketing systems in China. Products are being sold in large cities such as Beijing and Tianjin, as well as in Hebei and Shandong Provinces. Other areas of sale are Taiyuan (Shanxi Province), Chengdu (Sichuan Province), Guiyang (Guizhou Province), Wuhan (Hubei Province), Suzhou (Jiangsu Province), Guangzhou (Guangdong Province), Shenyang (Liaoning Province) and Harbin (Heilongjiang Province).

Organic Food Production
We will build an industrial base for sustainable organic food production in Zhongjie Interantional Industrial Park located in new Bohai Sea District in Cangzhou. Hebei Province and Xiangyao Food Co., Ltd, plan to develop modern organic animal husbandry.

Project conditions

• Two hundred hectares of land have been appointed by the local government for animal husbandry, and a peripheral 1333 hectares may be used to grow fodder.
• Milk produced in this project will be supplied to Tianjin, Beijing, Shijiazhuang and Jinan. The current request for milk in this area is 5000 tons per day.
• In this area relatively milk prices are higher than in other areas of China.
• Price for fodder is low due to the local environment that is suitable for alfalfa and Leymus chinensis

Project development

We will build a modern demonstration area for organic food production, focusing on organic dairy production, as well as organic feed production, organic vegetable production, feed processing, methane production, power generation and organic fertilizer production.

This project comprises of a two-phase construction. In phase I, 140 million RMB will be invested in an organic farm with 3000 head milk cows, a feed processing factory, an organic fertilizer factory, an organic vegetable base and methane-producing factory. In Phase II 220 million RMB will be invested in a farm of 7000 milk cows.

Investment and profit estimate

The investment in this project totals 360 million RMB, of which 320 million is investment in fixed assets. Annual sales revenue is estimated to reach 520 million RMB with an average annual profit of 120 million RMB.

Cooperation
We are looking for cooperation in the field of:
(1) Expert participation and technology investment
(2) Joint venture funding in the form of financial assets or milk cattle
(3) Autonomous investment in the dairy sector to supply milk to our company