Pork price slump does not change the confidence of Bayer expansion

Sole in China will achieve operating. Bayer Animal Protection
Alexander, president of the International? Jahn has accepted the "Daily Economic News," an interview, disclosed that it will acquire Bayer Sichuan Animal Protection Animal Husbandry-Industry Corporation, held by Bayer (Sichuan) Animal Health Co., Ltd. 30% of the shares after the acquisition, Bayer Animal Protection will hold 100% stake in the company. This is the expansion of Bayer Animal Protection in China this year, a major measure taken by one. In addition, Bayer Animal Protection in China's fastest-growing, last year achieved sales growth of 19%. Particularly in the food animal field, China has become the second largest market after the United States. Among them, Pig , Ox The market will be in China's strategic core, while the company will also provide Fisheries Cultivation And Pet Market expansion.


Acquired 30% stake in joint venture
Information, Bayer (Sichuan) Animal Health Co., Ltd. was founded in 1996 by Bayer Animal Protection and Animal Husbandry-Industry Corporation, a joint venture in Sichuan Province, when the two sides stake were 70% and 30% . The company offers animal health products, Feed Additives, pet health care products, health and water plant breeding farm solutions, now has three Beijing-Shanghai and Guangdong Foshan branch.


Alexander? Jahn said, will involve trade secrets, to recover 30% of the equity transaction to disclose the amount. Currently, the acquisition is awaiting the approval of relevant departments of the Chinese government.


"Then according to the relevant provisions of China, only after establishing a joint venture in China to build factories and sell products." Alexander? Jahn said that the main Chinese partner is the financial investment, not a strategic development investment. "China is a very important market, we hope to Bayer (Sichuan) Animal Health has a full grasp of the right company, this acquisition will help the company's investment decisions in China."


Pigs, cattle market will be the strategic core
Bayer Animal Protection estimates, China's animal health market (including animal nutrition products) market value of around 2.6 billion euros, of which to food animal products.


However, general manager of Bayer Animal Protection in China Qian He also admitted that animal health in China is not a developed industry. All foreign-funded enterprises in China, the market share of only 20% of the remaining 80% of the market share occupied by domestic enterprises. "Globally, the top ten multinational companies hold about 65% of the animal health market share in China market and the international level is inconsistent."


Addition Qian He further said that before the domestic animal health industry has more than 2,000 enterprises currently operating certificate to get more than 1,300, the future will further increase industry concentration. Because of smaller domestic companies, the company currently domestic firms are not competitors.


For the Chinese market, Alexander? Jahn said, "In food animals, pigs, cattle market will be in China's strategic core." Pig Intensive industry, the trend is unchanged. "He Qian said," China's pig industry 600 million yuan each year to 7 billion dollars a year, the output value of nearly 1 trillion level. "


Recent downturn due to pork price, feed raw materials rose significantly, in March the majority of the domestic pig farmers losing money. This Qian He said: "Companies related products sold in the first quarter rose 40%. As the rigid demands of reason, the company's products provide indispensable in pig production, whether good or bad pig profits must be use, so it will not affect its performance in China this year. "

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