Yurun Group, headquartered in Jiangsu, has decided to set up in Luoping County, Ningxia, a sheep slaughterhouse capable of 1.5 million sheep a year, the largest of its kind in Asia.
Mutton generates more profit than pork. Mutton supply has been tight in recent years. China’s sheep slaughter registered 267 million heads in 2007, a decrease of 22% from the previous year. Mutton production was merely 3.8 million MT in 2007.
The nation has 100 large sheep slaughter enterprises with a total capacity of 50 million heads a year, just 20% of the number of sheep delivered to the market each year. The rest of the sheep are slaughtered by small slaughterhouses. With the implementation of the policy of “slaughter at designated slaughterhouses”, the market promises a huge room for large slaughter enterprises.
Admittedly, large slaughterhouses have problems purchasing sheep at present. As Yurun’s slaughterhouse is located in a major sheep-producing county, sheep supply can be guaranteed.
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