牧食记AgriPost.CN English News Sunner Group Expands Ready-to-Eat Processing to Third Province

Sunner Group Expands Ready-to-Eat Processing to Third Province

Sunner Group, China’s leading white-feather broiler company, announced the launch of a new RTE food processing facility in Gansu Province. Before this, the group already had 10 operational RTE food factories, covering three provinces. The expansion aligns with Sunner’s broader strategy to boost production capacity and enhance B2C and B2B channels, including exports to global markets. Despite market challenges such as low chicken prices and declining profits in 2024, Sunner’s increased production, strategic mergers, and rising export sales are driving growth.

On October 9, Sunner Group announced the groundbreaking of a new ready-to-eat (RTE) food processing plant in Qingyang City, Gansu Province. This facility is part of Sunner Food (Gansu) Co., Ltd., marking the group’s third deep-processing location after Fujian and Jiangxi.

The project represents a total investment of 250 million RMB, covering 70 mu of land and a main building area of 30,000 square meters in Jinlong Industrial Park, Zhenyuan County. The plant will have a production capacity of 36,000 tons annually, featuring six meat processing lines capable of frying, roasting, and boiling various meat products. The facility is scheduled for completion and operation by June 2026.

Ongoing Expansion and Production Growth

This expansion follows the July launch of Sunner’s second factory in Zixi, Jiangxi Province, which increased the group’s total RTE facilities to 10. With an annual production capacity totaling 450,000 tons, these factories are concentrated around Sunner’s headquarters in Guangze County, Fujian Province, and nearby regions.

As China’s leading integrated white-feather broiler company, Sunner has focused on food processing since 2003, when it opened its first plant in Guangze. Its product line has since expanded beyond chicken to include beef and pork products. In addition to strengthening B2B channels, the company is growing its B2C sales, distributing products domestically and exporting to markets such as Japan, South Korea, South Africa, the United States, and Southeast Asia.

Strategic Mergers and Investments

A year ago, Sunner acquired Gansu Shengyue Agriculture & Animal Husbandry Co. Ltd., which includes a whole production chain from breeding to slaughtering. With an annual slaughter capacity exceeding 80 million birds, this acquisition solidified Sunner’s foothold in northwest China, serving large-scale domestic and international clients. At the time of the merger, Sunner’s founder, Fu Guangming, pledged to invest further in Shengyue by establishing a RTE plant, implementing digitalization, and expanding its export business.

Fu Guangming

Financial Performance Amid Market Challenges

Despite a significant drop in net profit for the first three quarters of 2024, Sunner Development reported continuous growth in raw chicken and processed meat sales, with overall volume increasing nearly 20%. Lower chicken prices have impacted profitability, but cost-saving measures and product innovation helped improve quarter-over-quarter performance, particularly in Q3, where profits surged 70% from Q2.

The company’s slaughter volume rose more than 22%, and the launch of its 10th food processing plant provided strong momentum for future growth. Export sales, notably, grew over 30%, enhancing Sunner’s presence in the restaurant supply chain market.

Sunner remains committed to enhancing high-value channels and product offerings, maintaining a premium over industry peers.

On the consumer retail front, its online and offline efforts contributed to a nearly 20% year-on-year increase in B2C sales from January to September.

The company also revealed ongoing efforts to improve its in-house breeding efficiency with the phased rollout of the Shengze 901Plus breed, designed to lower future farming costs.

CN 

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定位为农牧食品企业的第二大脑的“牧食记”由多位具有媒体、市场、咨询等从业背景的中国农业大学校友于2018年底联合创办,通过资源整合、协同共生,为国内外猪禽牛(肉蛋奶)全产业链的利益相关方提供立足于中国市场的公关传播、品牌营销和决策咨询服务。https://www.agripost.cn/2024/10/11/sunner-group-expands-ready-to-eat-processing-to-third-province/
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