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China Xiangtai Food Co., Ltd. (NASDAQ:PLIN) Positioned to Take Advantage of the Massive Pork Shortage in China by Expanding Hog Breeding Business

China Xiangtai Food Co., Ltd will be able to have better control of the supply chain and continue to build their competitive advantages in the market


Chongqing, China -- (ReleaseWire) -- 08/26/2020 --China Xiangtai Food Co., Ltd. (NASDAQ:PLIN) ("Xiangtai" or the "Company") is an emerging growth company engaged in the food processing business in China. China has an enormous appetite for meat, especially pork. Pork is the most widely consumed meat in the world, followed by poultry, beef and mutton. China leads the world in pork consumption. The average Chinese person consumes nearly 88lbs of the meat annually. As a result, China accounts for half of the world's pork consumption. But sadly as the African swine fever outbreak has wiped out hundreds of millions of pigs in China and has pushed up its prices by as much as 70 per cent.

But no matter how much China increases pork imports, it will be insufficient to fill the gap created by the swine fever outbreak. The entire pork global trade volume makes up only about 20% of China's domestic consumption. Even if China's pork imports triple next year, they would still only account for 5 to 6% of the country's domestic consumption, says He Weiwen, a senior researcher at the Center for China and Globalization, a Beijing think tank. China's pork industry will take at least five years to fully recover, based on other countries' experience with African swine fever. It is generally expected that the hog production will not recover until the end of next year, at the earliest. At least for next year, prices are expected to continue to rise.

China Xiangtai Expanding It's Hog Breeding Business:

China Xiangtai Food Co., Ltd. (NASDAQ:PLIN), announced that the Company, through its primary operating subsidiary Chongqing Penglin Food Co. Ltd., has entered into a lease agreement to expand hog breeding business in Guangxi Province. Pursuant to the Agreement, the Company has agreed to rent a 2,500-square-meter hog breeding farm with four hog breeding houses in Guangxi for five years until May 7, 2025.

"By combining the capacity of the Farm and business experience of our company, we will be able to have better control of the supply chain and thus our company to continue building our competitive advantages in the market," said Ms. Zeshu Dai, Chairman and Chief Executive Officer of China Xiangtai Food Co., Ltd.

Mr. Xiaohui Wu, President and Director of China Xiangtai Food Co., Ltd. commented, "We are implementing our vertical integration strategy to seize development opportunities. The Farm can further optimize the deployment of PLIN's production capacity while also increasing the quality of our offerings at fair and stable prices since we are able to control the supply end of our products. We believe this move will further enhance the Company's profitability and realize our commitment to increase long-term shareholder value."

Launch of Hot Pot Restaurant Business with Aims to Open 200 Franchisees by the End of 2021

On August 13th, 2020, China Xiangtai Food Co., announced the upcoming launch of a hot pot franchise business and plans to open its first location in Chongqing by August 31, 2020. The launch will allow PLIN to integrate its existing industry resources and leverage its strength to provide consumers with a farm-to-table experience. China Xiangtai Food Co. plans to expand the hot pot chain by applying a franchise model and increase the number of restaurants to 200 by the end of 2021. All restaurants will be operated under the PLIN brand "Xiangtai Fresh Beef Hot Pot". China Xiangtai Food Co plans to recruit a team of seasoned restaurateurs with more than 20 years of professional experience to manage and operate the franchise chain.

By combining the capacity of the farm and business experience, China Xiangtai will be able to have better control of the supply chain and company to continue building its competitive advantages in the market. This farm can further optimize the deployment of China Xiangtai's production capacity while also increasing the quality of company offerings at fair and stable prices since they will be able to control the supply end of its products. China Xiangtai management believes this move will further enhance the company's profitability and realize its commitment to increase long-term shareholder value.

About China Xiangtai Food Co., Ltd
Headquartered in Chongqing, China, China Xiangtai Food Co., Ltd, is a food company primarily engaged in pork processing. The Company's operations span key sections of the pork processing value chain, including slaughtering, packing, distribution, and wholesale of a variety of fresh pork meat and parts. Primarily focused on pork products, the Company also offers other fresh and processed products, including beef, lamb and poultries. Through the recent acquisition of Chongqing Ji Mao Cang Feed Co., Ltd, the Company has also expanded into the business of feed raw material and feed formula solutions. Through its core values, the Company is committed to maintaining the highest standards of food safety, product quality, and sustainability to provide high-quality, nutritious, and tasty food in a responsible manner through its portfolio of trusted brands. For more information, please visit

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