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100,000 Head of Horse (Donkey and Mule) Meat Products Processing Project of Baicheng City
2012/08/29     Source:

 

1.  Introduction to the Project

1.1  Project Background

1.1.1  Product Introduction

Products of horses, donkeys and mules are rich in protein and minerals such as calcium, phosphorus, iron, magnesium, zinc, selenium, etc. They are effective to renew liver functions, prevent anemia, promote blood circulation, prevent arteriosclerosis, and strengthen people’s immunity. Eating them can enrich the blood, tonify Qi, cure strain, dizziness, vexation, etc.

1.1.2  Market Prospects

IProduct market projection

Horse meat contains a dozen amino acids and a variety of essential vitamins. It has high protein content and also contains calcium, zinc, iron, selenium and other minerals in abundance. It has tonic functions such as tonifying middle-Jiao and Qi, nourishing liver and nurturing blood, nourishing Yin and strengthening Yang. It can promote blood circulation, prevent arteriosclerosis and enhance human immunity. The quality of horse meat fat is better than the fat of cattle, sheep, and pigs. Horse meat fat is similar to vegetable oil with high content of unsaturated fatty acid. Human body cannot synthesize unsaturated fatty acids, and it must rely on dietary intake to get it, so it is also known as essential fatty acids. Unsaturated fatty acids have the following main physiological functions (1) maintaining cell membrane relative mobility to ensure the normal physiological function of cells. (2) cholesterol esterification, lower blood cholesterol and triglycerides. It is the forequarters substances to synthesize prostaglandins and thromboxane in the human body. (4) reducing blood viscosity and improving blood microcirculation. (5) improving the activity of brain cells, enhancing memory and thinking ability. Unsaturated fatty acids can dissolve cholesterol so that it cannot be deposited on the vessel wall, so it has a special role in the prevention of atherosclerosis. Lack or insufficiency of dietary unsaturated fatty acids is likely to lead to the following diseases: (1) blood low-density lipoprotein and LDL cholesterol increased, resulting in atherosclerosis induced cardiovascular and cerebrovascular disease. Unsaturated fatty acids are important nutrients for the brain and cranial nerves, so inadequate intake will affect memory and thinking power, affect the mental development of infants and, and result in dementia to the elderly. In 1993, the World Health Organization and the UN Food and Agriculture Organization recommended addition of appropriate amount of unsaturated fatty acids to diet.

Donkey meat is tender and delicious. It has the function of nourishing blood, tonifying Qi, reversing physical weakness and other functions. It is an ideal health meat. 100 g donkey meat contains 18.6 g  protein, 0.7 g fat, 10 mg calcium, 144 mg phosphorus, 136 mg iron, and 80 kcal. Donkey meat is delicate and delicious, with more lean meat but less fat. It is not greasy. The fat contains much unsaturated fatty acids, including linoleic acid. Llinolenic acid has a high biological value and low-cholesterol content. It can prevent vascular sclerosis. Donkey meat can tonify Qi, nourish blood, and cure long-lasting strain. There is a saying about the best food, "dragon meat in the heaven and donkey meat on the earth". As by-products, donkey hide, donkey penis, donkey bone, donkey blood, donkey hooves, fat and milk can all be used as medicine. Ejiao, a traditional Chinese medicine brewed with donkey hide ("donkey-hide gelatin") is a strong tonic product, something with blood, flesh and sentiment. It can be used alone or in conjunction with other drugs made into decoction, medicated cream drink and medicine. It is widely used in medicine and health food. The donkey-hide gelatin is really a tonic to nourish Yin and nurture blood. It can accelerate the formation of red blood cells and hemoglobin in the blood, and it has a significant hemostatic effect of conditioning chronic diseases, all kinds of anemia and chronic bleeding, improving physical fitness, good health and longevity.

II Projection of the market demand for the products

China is a big country of a population of 1.3 billion. Assuming that the per capita consumption of horse meat, donkey meat and mule meat increases by 1 kg, the total consumption will increase by 1.3 million tons. Such a huge market will natural make merchants cast a covetous eye at it. So, the project has a vast prospect in terms of either market sales or technical innovation.

III Analysis of the targeted market of the products

The products aim mainly at the domestic market followed by the international market.

IV Current price and projection

Based on the current market sales, it is decided that the anticipated sale prices of the products are as follows: Cut meat with vacuum fine packaging (horse, donkey, mule): 22000 Yuan / ton; horse ribs, donkey ribs and mule ribs with vacuum fine packaging: 20000 Yuan / ton; ham (horse, donkey, mule) with vacuum fine packaging: 18000 Yuan / ton; board intestine (horse, donkey, mule) vacuum fine packaging: 15000 Yuan / ton; tendons (horse, donkey, mule) vacuum fine packaging: 18000 Yuan / ton; donkey hide gelatin: 25000 Yuan / ton; donkey penis: 30000 Yuan / ton; head and internal organs of horse, donkey or mule: 5000 Yuan / ton; miscellaneous bones: 4000 Yuan / ton, miscellaneous hides: 200 Yuan / per hide. It is good value for money and suitable for mass consumers.

1.1.3  Technical Analysis

1. Production method

Imported complete sets of production lines at the highest degree of automation will be adopted to slaughter horses, donkeys and mules to reduce manual work intensity and attain the international requirements or standards in terms of health of horses, donkeys and mules, environmental protection, humanization, safety and quality. Such unique and advanced processes will be adopted as process control, rotational positioning, painless slaughter, mechanical skinning, automatic splitting, high-pressure shower, rapid pre-cooling, cooling for tenderness, etc.

15 days before the slaughter, there shall be no medicine in the feed for the fattened horses, donkeys and mules. When sick horses, donkeys and mules are cured, there shall be a 15-day withdrawal period after medication is stopped, and then they can be slaughtered. During the transportation of the fattened horses, donkeys and mules, the use of sedative drugs is strictly prohibited. Slaughtering fattening horses, donkeys and mules must strictly follow the slaughter process and sanitation standards to ensure pollution-free, quality and nutritious horse, donkey and mule meat.

Donkey-hide gelatin is block gelatin from boiled donkey hide. The production methods are as follows: First, scrape off the hair from the donkey hide and cut the hide into small pieces; add water and boil them for three days until the juice becomes thickened; then, remove the donkey hide pieces, add more water and continue to boil them. Repeat the process five to six times, and filter out impurities from the donkey-hide gelatin. Then use fire to concentrate it to a thick paste, condensate it, dry it, and agglomerate it into square donkey-hide gelatin cubes for medicine.  The finest donkey-hide gelatin is black in color, transparently light and stench-free. It is even better if it does not become marshy through summer.

2. Process flow chart: Horses, donkeys and mules into the waiting room →weighing → slaughter cage (stunned) → bloodletting → peeling → → picking out the internal organs, removing head and hooves → carcass splitting → carcass washing → carcass weighing → carcass pre-cooling → carcass maturity processing → carcass cutting → inspection → packing, storage frozen → storage → finished product.

3. Brief description of the production process

The horses, donkeys and mules to be slaughtered are sent to the waiting room and then to the slaughtering section to be slaughtered. After slaughter, the horses, donkeys and mules go through the bloodletting of 6-8 minutes. The blood of the horses, donkeys and mules is collected from the blood trough for other uses. When the bloodletting is over, the horses, donkeys and mules are placed on the automatic conveyer to the next section of skinned and removing internal organs. They wait at least for 24 hours of the cooling process and then they are deboned and cut into different meat pieces of specifications according to different requirements. For domestic sales, they are cut into four parts or deboned; for exports, the horse, donkey and mule meat is cut into different pieces according to the contract requirements. The main equipment of the slaughtering process of this project will all be imported from abroad, and it has such unique and advanced processes as process control, rotational positioning, painless slaughter, mechanical skinning, automatic splitting, high-pressure shower, rapid pre-cooling, cooling for tenderness, etc.

4. Quality standards for the products

Referring to the agricultural industry standards of the People's Republic of China; pollution-free food standards for donkey meat; the NY5271-2004 standards. The enterprise will develop its own corporate standards, and the product quality shall follow the corporate standards.

1.1.4  Advantageous Conditions for and Necessity of Project Implementation

Since 2004, the Chinese central government has consecutively issued three “No. 1 Documents” on agriculture, the countryside and farmers, showing the determination of the Chinese leaders to solve the “Sannong” problem. The Chinese central government’s “No. 1 Document” in 2006, “Opinions of the Central Committee of the CPC and the State Council on the Promotion of Building Socialist New Countryside” pointed out that the “11th five-year-plan” period (2006-2010) is the key period to lay a solid foundation for the construction of the socialist new countryside, and increasing farmers’ incomes by all manners of means is the top priority in the work of agriculture and rural areas.

Zhenlai County has a long history of and rich experience in raising large domestic animals. It was identified by the state as a livestock production base in 1979, and it has been rated by the Ministry of Agriculture as an advanced county for seven consecutive years. Since 1996 when the project of building a powerful county through the livestock industry was launched, particularly since 2000 when the “203” project was launched, the livestock households of the county have constantly updated their concepts, turning scattered raising into feedlot raising and selling animals alive into selling slaughtered and processed livestock products. With the development over the recent years, Zhenlai County has made use of the “203” poverty alleviation loans from the Asia Development Bank to introduce a large number of quality breeds of horses, donkeys and mules. Now the farmers are unprecedentedly enthusiastic about raising horses, donkeys and mules. There are 40000 households engaged in raising horses, donkeys and mules, donkeys, in particular. Now there are 105000 head of horses, donkeys and mules in the country, including 60000 head of donkeys. It has basically attained the objective of “increasing livestock benefits, increasing farmers’ incomes and increasing financial revenues” to promote the construction of a powerful livestock county. The county committee of the CPC and the country government have decided to vigorously develop the livestock and meat processing industry as a key industry to build a powerful livestock county in order to accelerate process of achieving the objective of a powerful livestock county. It is of great significance to convert agricultural products and agricultural by-products locally, promote virtuous cycles of agricultural and livestock industries, develop high-yield, excellent-quality, low-cost and high-efficiency agriculture, enable farmers to attain the well-to-do objective for the construction of the socialist new countryside.

So the project will benefit vigorous development of raising horses, donkeys and mules and benefit resolutions to the “Sannong” problem so that masses of livestock households can have better economic returns and accumulate more experience in large domestic animal raising and fattening to lay a solid foundation for vigorous development of the livestock industry.

1.2 Content and Scale of Project Construction

1.2.1  Product Scheme and Scale

I Construction Scale

According to the market capacity, market demand, the situations of raising horses, donkeys and mules, local conditions and counterpart funds, it is decided that the project annual production capacity will be to slaughter and process 100000 horses, donkeys and mules.

II Product Plan

No.

Product Name

Unit

Quantity

1

Cut meat with vacuum fine packaging (horse, donkey, mule)

Ton/Year

5000

2

horse ribs, donkey ribs and mule ribs with vacuum fine packaging

Ton/Year

1000

3

ham (horse, donkey, mule) with vacuum fine packaging

Ton/Year

5000

4

board intestine (horse, donkey, mule) vacuum fine packaging

Ton/Year

200

5

tendons (horse, donkey, mule) vacuum fine packaging

Ton/Year

10

6

donkey hide gelatin

Ton/Year

50

7

donkey penis

Ton/Year

50

8

miscellaneous bones

Ton/Year

2000

9

head and internal organs of horse, donkey or mule

Ton/Year

1000

10

miscellaneous hides

Standard hide/year

50000

11

Raw materials of biological products

Ton/Year

1000

1.2.2  Construction Contents

The project will comprise the production component, the public utility component and other supporting components. Refer to the following table for the names and construction areas.

No.

Component category

Project Name

Construction area

Productivity

Remarks

1

Production component

 

 

 

 

 

 

Animal waiting room

960

100000 head

Newly-built

 

 

Slaughtering workshop

5500

100000 head

Newly-built

 

 

Hide processing workshop

600

50000 standard hide

Newly-built

 

 

Emergency slaughtering workshop

200

 

Newly-built

2

Supporting component

 

 

 

 

 

 

Machine repair workshop

800

 

Newly-built

 

 

Raw materials warehouse

2000

 

Newly-built

 

 

Cold storage

5000

 

Newly-built

 

 

Garage

396

 

Newly-built

3

Public utility component

 

 

 

 

 

 

Power substation

210

800KVA×2

Newly-built

 

 

Deep well pump house

25

 

 

 

 

Water supply pump house

84

 

Newly-built

 

 

Firefighting pool

500m3

 

Newly-built

 

 

Water blocking pool

100m3

 

Newly-built

 

 

Accident pool

500m3

 

Newly-built

 

 

Recycled water pump house

290

 

Newly-built

 

 

Recycled water pool

80m3

 

Newly-built

 

 

Wastewater treatment station

600

 

Newly-built

 

 

Boiler room

400

4t/h2t/h

Newly-built

4

Other components

 

 

 

 

 

 

Office building

5482

 

Newly-built

 

 

Employee dormitory and canteen

2000

 

Newly-built

 

 

Platform scale room

48

 

Newly-built

 

 

Entrance guard room

36

 

Newly-built

 

 

Road

 

 

Newly-built

 

 

Fencing wall

 

 

Newly-built

1.3  Projections of Economic Returns and Social Benefits

1.3.1  Major Indexes for Forecast of Economic Benefits

1. Estimated sales incomes

Based on the market and the unit sales price (including tax), the sales prices of the project products are tentatively as follows:

Design capacity

Unit

Quantity

Unit price

Cut meat with vacuum fine packaging (horse, donkey, mule)

Ton/Year

5000

22000

horse ribs, donkey ribs and mule ribs with vacuum fine packaging

Ton/Year

1000

20000

ham (horse, donkey, mule) with vacuum fine packaging

Ton/Year

5000

18000

board intestine (horse, donkey, mule) vacuum fine packaging

Ton/Year

200

15000

tendons (horse, donkey, mule) vacuum fine packaging

Ton/Year

10

18000

donkey hide gelatin

Ton/Year

50

25000

donkey penis

Ton/Year

50

30000

miscellaneous bones

Ton/Year

2000

4000

head and internal organs of horse, donkey or mule

Ton/Year

1000

5000

miscellaneous hides

Standard hide / year

50000

200

In a normal year, the incomes from the products will be 251.930 million Yuan.

2.  Major Indices for Projections of Economic Returns

According to calculation, during the calculation period under normal circumstances, the total profits (sales profits) will be 24.261 million Yuan. Assuming 25% income tax, under normal circumstances, the income taxes will be 6.065 million Yuan on average, and the after-tax profits will average 18.196 million Yuan during the calculation period.

FIRR (before income tax)

%

17.2

Capital return rate

%

23.3

Financial net present value (before tax)

10000 Yuan

6424.7

Investment recovery period

Year

6.6

Return on investment

%

16.2

Profit and tax investment ratio

%

21.2

1.3.2  Analysis of Social Benefits

The total investment in the project will be 149.398 million Yuan, including 132.284 million Yuan in the project implementation. Large quantities of building materials such as cement, steel, etc. will be locally supplied, which means a big development opportunity to the construction industry.

When the project is implemented, it will need large quantities of raw materials, auxiliary materials and fuel each year, and it will promote the development of horse, donkey and mule raising, feed, transport, etc industries. The project will also mobilize the catering service, shopping, recreation, transport, postal service and telecom service in the locality and surrounding areas, so it will play a big role and have a big significance in the local economic development. The project can directly add 416 jobs to provide laid-off workers with an opportunity for reemployment, so it has both economic and social benefits. It is a good project in line with national development needs, conducive to social stability and unity, tax revenue increase, the people and the country.

1.4  Total Investment and Financing

1.4.1  Total Investment in the Project

The total investment in the project will be 149.398 million Yuan.

1.4.2  Financing

ICapital financing

The project capital will be 46.956 million Yuan, including the investment of 41.822 million Yuan in fixed assets and working capital of 5.134 million Yuan. It will mainly come from the enterprise’s self-financing from the enterprise’s surplus and available capital.

II Debt financing

The project will apply for loans of 102.441 million Yuan, including the investment of 90.461 million Yuan in fixed assets and working capital of 11.98 million Yuan.

1.5 Cooperative Ways of the Project

Joint venture or cooperation

1.6 What to be Invested by Foreign Party

Foreign Sole Proprietorship

1.7 Construction Site of the Project

Zhenlai County Industrial Cluster

1.8 The On-going Condition of Project

The feasibility study is prepared and available.

2. Introduction to Partner

2.1 Name of project undertaker

The Jilin Zhenlai Economic Development Zone was founded in September 2005, and its total planned area is 188000 square kilometers, including a core area of 67000 square kilometers. Since its founding, especially since 2010, it has invested more than RMB 300 million in infrastructure. The entire core area has already has the “seven accesses and site leveling” and is now serving as a quality platform to attract businesses, investments and projects.

The Zhenlai County committee of the CPC and the county government attach great importance to the construction and development of the development zone. They are making the greatest efforts to provide clients and investors with excellent environment for investment, service, undertaking and development. It has made special preferential policies on land acquisition, taxation, planned construction, fee charges, service, etc. It also has outstanding advantages in resources, industries, transport and environment. It is a national-level sanitation county, national-level safe county, provincial-level excellent environment county, “hometown of abundance”, hometown of new energy industries, and hometown of white cranes. These brand names have attracted large numbers of outside investors to come for surveys and investments to start up careers, which has accelerated the rise and growth of the development zone.

2.2 Contact Method

Contact Unit Economic and Technical Cooperation Bureau of Zhenlai County Jilin Province

Postal Code137300

Contact PersonGuo Changcai  Liu Jide  Jia Wei

Tel0436-7293691 7293698 7293695

Fax0436-7293692

Emailzlxzsb@163.com   

Contact person of city (prefecture) of the projectMa Jianping    Fan Yan

Tel0436-5097707

Fax0434-5097706

Emailjhj5097707@126.com

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