It was disclosed in the evening of Muyuan Foods Co.Ltd(002714) , Henan Shuanghui Investment & Development Co.Ltd(000895) January 4 that the two sides had signed the Shuanghui muyuan strategic cooperation framework agreement in Luohe City, Henan Province on January 1, 2022 to cooperate on point-to-point direct supply of pigs and the establishment of supply chain cooperation mechanism.
As the two leaders in China’s agricultural sector, Henan Shuanghui Investment & Development Co.Ltd(000895) deep ploughing slaughtering and processing is the largest meat processing enterprise in China, Muyuan Foods Co.Ltd(002714) deep ploughing pig breeding is the largest pig breeding enterprise in China. The number of pigs sold in 2021 exceeded 40 million.
It is disclosed that in the hands of the strong alliance, the two sides will implement point-to-point direct supply of pigs. Among them, Henan Shuanghui Investment & Development Co.Ltd(000895) will open up a green channel and give priority to the acquisition of Muyuan Foods Co.Ltd(002714) direct supply of pigs 24 hours a day; Muyuan Foods Co.Ltd(002714) farms matching Henan Shuanghui Investment & Development Co.Ltd(000895) slaughter shall be set as the base to give priority to the supply of Henan Shuanghui Investment & Development Co.Ltd(000895) and ensure the quality and quality of the supplied pigs. Each pig weighs 80kg to 140kg to ensure that the quality and safety of pigs meet the requirements of national and industrial standards and procurement standards.
At the same time, the two sides strengthened cooperation in the purchase and sale of live pigs and strengthened capacity matching and connection. Specifically, when the pig price is low, Henan Shuanghui Investment & Development Co.Ltd(000895) can moderately increase the pig procurement of Muyuan Foods Co.Ltd(002714) and have the right to enjoy all relevant preferential policies for pig sales of Muyuan Foods Co.Ltd(002714) . When the market price rises, Muyuan Foods Co.Ltd(002714) the supply of pigs can be moderately increased. The agreement is valid from January 1, 2022 to December 31, 2024.
In fact, before the signing of this strategy, the cooperation between Shuanghui and muyuan has a long history. It is disclosed that from January to September in 2019, 2020 and 2021, Muyuan Foods Co.Ltd(002714) directly sold pigs to Henan Shuanghui Investment & Development Co.Ltd(000895) with the amount of 21 million yuan, 380 million yuan and 290 million yuan respectively, accounting for 0.11%, 0.69% and 0.54% of the total pig sales amount of Muyuan Foods Co.Ltd(002714) in the current year / period respectively.
The two sides said that the signing of the strategic cooperation agreement is conducive to give full play to the industrial advantages of both sides, improve product quality, efficiency and market competitiveness, and further promote the complementary industrial advantages and high-quality development of both sides.
(Shanghai Securities News · China Securities Network)
