Project Financing for Development of Industrial Pig Farming – Cash In On The Social Media Revolution Now

Chinese Business News shows Muyuan is planning to increase its breeding and commercial hog farm capacity (the “Project”) by constructing: a commercial hog farm with 120,000 hog/year capacity and a commercial hog farm with 80,000 hogs/year capacity a 15,000 sow breeder farm, with linked commercial grow out hog farm with capacity of 300,000 hogs/year; another 15,000 sow breeder farm; and working capital needs.

Upon completion of the Construction Project, Muyuan’s annual hog production capacity would increase from 0.5 million to 1 million.

Muyuan Foodstuff Co. Ltd, located in Neixiang, Henan province, is one of the largest hog producers in China. Founded in 1992 by Mr. Qin Yinglin, Muyuan evolved from a backyard pig farm of 22 pigs, to a large scale, farrow-to-finish hog production company with an annual production capacity of around 500,000 hogs and breeders. Muyuan owns 1 Great Grand Parent (GGP) farm, 12 breeding and growing farms, and 2 feed mills with an annual production capacity of 400,000 tons. A few more breeder and growing farms are being planned or constructed.

Total estimated Project cost: $ 51.3 million, which will be funded by IFC equity investment $10 million, domestic bank loan $15 million, Internal Cash generation $ 26.3 million (Muyuan has already spent $6.3million in the project).

The project finance will be implemented by Muyuan Foodstuff Co., Ltd in Neixiang County, Henan Province, China. Under the proposed project, four hog farms with an annual production capacity of 500,000 will constructed and put into operations.