New Hope Liuhe Business Model Canvas
Fully Editable
Tailor To Your Needs In Excel Or Sheets
Professional Design
Trusted, Industry-Standard Templates
Pre-Built
For Quick And Efficient Use
No Expertise Is Needed
Easy To Follow
New Hope Liuhe Bundle
Agri-food Business Model Canvas: Strategic Blueprint for Value, Scale, and Margin Growth
Unlock the full strategic blueprint behind New Hope Liuhe’s business model. This in-depth Business Model Canvas reveals how the company creates value, scales across agri-food segments, and secures margins through partnerships and vertical integration. Download the complete, editable canvas to benchmark, plan, and invest with confidence.
Partnerships
Grain & additive suppliers
Secure relationships with corn, soybean meal and premix providers stabilize input quality and pricing, aligning purchases with China’s ~97 million tonne soybean imports in 2023. Long-term contracts and hedging partners reduce exposure to commodity swings and pass-through cost shocks. Collaborative feed formulation with additive suppliers taps a global feed additives market valued at about USD 29.6 billion in 2023, lifting animal performance. Joint quality audits ensure food safety compliance across the chain.
Breeding genetics & biosecurity firms
Alliances with swine and poultry genetics firms boost growth rates and disease resistance, supporting New Hope Liuhe’s scale in a market where China produces roughly half of global pork output. Shared R&D with genetics partners accelerates herd productivity and survivability through trials and genomic selection. Biosecurity partners supply vaccines, diagnostics, and protocols; since China banned antimicrobial growth promoters in 2020, these ties help cut antibiotic use, lower mortality, and reduce operational risk.
Contract farmers & integrators
In 2024 New Hope Liuhe leverages contract farmers and integrators to expand capacity without heavy capex, shifting investment to logistics and digital systems. Standardized contracts align incentives on feed conversion and animal welfare. Dedicated technical service teams drive on-farm performance, while data-sharing enhances barn-to-plant traceability.
Retailers, foodservice, e-commerce
Channel partners — national retailers, HORECA and e-commerce platforms — deliver broad market access for New Hope Liuhe fresh and processed meats, supporting store and online distribution in 2024 and driving category sell-through via joint promotions and category management across SKU assortments.
E-commerce alliances enable cold-chain last-mile delivery and subscription programs, while retailer feedback loops from POS and online reviews inform product development and packaging iterations.
- 2024 focus: omnichannel market access
- Joint promotions + category management = improved sell-through
- Cold-chain last-mile via e-commerce partners
- POS and online feedback used for product/packaging updates
Logistics, cold-chain & financial institutions
Cold-chain operators safeguard product integrity end-to-end for New Hope Liuhe, ensuring chilled pork and poultry meet regulatory safety standards and market shelf-life requirements in 2024. 3PLs optimize routing and inventory turns across regions, improving distribution efficiency and reducing spoilage. Banks and insurers provide working capital, hedging and risk-transfer solutions while infrastructure partners co-invest in storage, slaughter and processing capacity to scale supply.
- Cold-chain: end-to-end product integrity (2024)
- 3PLs: regional routing, higher turns
- Financial: banks/insurers for WC and hedging
- Infra: co-invest in storage, slaughter, processing
Feed chains hedge China 97 Mt, additives USD 29.6bn
Strategic suppliers (corn/soy/premix) and hedging partners stabilize costs against China’s ~97 Mt soybean imports (2023) and a global feed-additives market of USD 29.6bn (2023). Genetics, biosecurity and contract-farmer alliances raise productivity while reducing antibiotic risk post-2020 ban. Cold-chain, 3PLs and financiers enable omnichannel scale and working-capital flexibility in 2024.
| Partner | Role | 2023/24 metric |
|---|---|---|
| Feed suppliers | Input stability | China soy imports ~97 Mt (2023) |
| Additives | Performance | Market USD 29.6bn (2023) |
What is included in the product
Detailed Word Document
A comprehensive, pre-written business model tailored to New Hope Liuhe’s integrated agribusiness and food-processing strategy. Organized into 9 BMC blocks with detailed customer segments, channels, value propositions, revenue streams, costs, partnerships and risks, plus SWOT and competitive analysis for investor presentations and strategic decision-making.
Customizable Excel Spreadsheet
High-level, editable business model canvas for New Hope Liuhe that condenses strategy into a one-page snapshot—saving hours of structuring while enabling fast comparison, team collaboration, and quick executive-ready deliverables.
Activities
Formulate & manufacture feed
Formulate species- and stage-specific rations to improve FCR and lower cost per kg, leveraging New Hope Liuhe (000876.SZ) feed R&D and commercial-scale trials in 2024. Operate mills with strict QA/QC, full batch traceability and >95% automated monitoring to reduce recalls and variability. Integrate centralized commodity procurement and hedging to stabilize margins amid 2024 feed input volatility. Continuously refine formulations using real-world performance data and farm feedback loops.
Breed, rear, and finish livestock
Manage genetics, biosecurity, and animal welfare at scale across integrated sites to sustain productivity, leveraging genetics programs and biosecurity protocols that target feed conversion ratios of 1.6–2.0 for poultry and mortality rates below 5%. Operate nursery, grow-out, and finishing units with standardized SOPs across 6–24 week production cycles to ensure uniform output. Monitor health, stocking density, temperature, and ventilation to cut losses and coordinate supply with processing schedules to minimize holding time and plant downtime.
Slaughtering & meat processing
Run automated slaughter lines for pigs and poultry under HACCP standards, cutting, deboning (≈65% yield) and further-processing into value-added SKUs; maintain cold-chain integrity at ≤-18°C with standardized MAP packaging and traceability; process by-products via rendering and biogas, aiming to reduce waste and recover energy and protein for feeds, supporting integrated New Hope Liuhe operations.
Sales, branding & category management
New Hope Liuhe develops consumer and B2B brands across fresh and processed meats, aligning SKUs and pricing by channel to capture both retail and foodservice margins.
They run promotions and assortment optimization driven by data analytics for demand forecasting and inventory efficiency, feeding RM and production plans.
Strategic account teams manage key customers and national chains, delivering tailored programs to expand share and deepen distribution.
- brand portfolio: consumer & B2B
- channel pricing & promotions
- demand forecasting via analytics
- strategic accounts & key customer programs
Quality, traceability & regulatory
New Hope Liuhe conducts regular supplier and farm audits to meet domestic and export standards, maintains end-to-end farm-to-fork traceability platforms, enforces food safety, environmental and animal welfare compliance, and sustains recall and crisis-communication readiness aligned with 2024 regulatory expectations.
- Audit suppliers & farms
- Farm-to-fork traceability
- Regulatory compliance (food, env, welfare)
- Recalls & crisis communication
FCR 1.6–2.0; mortality under 5%; automation >95%
Formulate species- and stage-specific rations (2024 commercial trials) to improve FCR to 1.6–2.0 and lower cost/kg; operate mills with >95% automated monitoring and full batch traceability. Manage genetics, biosecurity and SOP-driven cycles to keep mortality <5% and synchronize supply with processing. Run HACCP slaughter/processing, deboning yield ≈65%, cold-chain ≤-18°C and by-product rendering for energy/feed recovery. Drive channel-aligned brands, analytics-led promotions and strategic account programs.
| Metric | 2024 Target/Value |
|---|---|
| Feed conversion ratio (FCR) | 1.6–2.0 |
| Mortality | <5% |
| Mill automation | >95% monitoring |
| Deboning yield | ≈65% |
| Cold-chain | ≤-18°C |
Full Version Awaits
Business Model Canvas
The preview you see is the exact New Hope Liuhe Business Model Canvas file you’ll receive after purchase; it’s not a mockup. When you buy, you’ll get the same complete, professionally formatted document ready for editing and presentation. No surprises—full deliverable, instantly downloadable.
Resources
Integrated supply chain footprint
Integrated supply chain footprint — with over 300 feed mills, roughly 200 breeding farms and more than 50 finishing and processing sites — creates scale advantages through lower unit costs and purchasing power. Geographic dispersion across China and Southeast Asia reduces disease and logistics risk, limiting localized disruption. Cold-chain assets and refrigerated transport preserve product quality and reduce spoilage. Vertical integration captures upstream-to-downstream margins, boosting gross margin and cash conversion.
Genetics, know-how & IP
Proprietary feed formulas, husbandry protocols and processing specifications at New Hope Liuhe drive measurable performance gains across feed conversion, mortality and carcass quality. Access to elite genetics underpins faster growth and higher meat yield per bird. Integrated data systems translate farm metrics into operational improvements while training and SOPs institutionalize best practices.
Brand portfolio & customer contracts
With 42 years since its 1982 founding, New Hope Liuhe's recognized brands strengthen pricing power in retail and foodservice across thousands of outlets. Long-term customer contracts stabilize volumes and cash flow, supporting predictable production planning. Robust private-label capabilities broaden channel reach and margin mix, while a documented safety track record underpins consumer and B2B trust in 2024.
Human capital & technical teams
Veterinarians, nutritionists and process engineers at New Hope Liuhe drive feed-to-farm efficiency, supporting the group’s scale-focused targets; industry data in 2024 shows China feed industry value surpassing RMB 1 trillion, highlighting pressure for technical excellence.
Sales and category managers deepen customer relationships and channel margins; QA teams enforce end-to-end standards, cutting quality incidents and recall risks; leadership and operations talent orchestrate rapid plant rollouts and SKU scaling.
- Veterinarians/nutritionists/process engineers: operational efficiency
- Sales/category managers: customer depth & margin
- QA teams: end-to-end compliance
- Leadership/ops: scaling production & SKUs
Financial strength & risk management
Working capital and committed credit lines of RMB 20 billion in 2024 smooth commodity cycles, while systematic hedging programs in 2024 reduced grain and FX volatility exposures across trading and feed operations. Insurance cover and biosecurity reserves equivalent to multiple months of operating costs limit shock impact, and dedicated capex capacity funds support ongoing expansion and modernization projects.
- Working capital: RMB 20bn (2024)
- Hedging: grain/FX programs active (2024)
- Reserves: insurance + biosecurity
- Capex: funded for expansion/modernization
Vertical-integrated poultry: 300+ mills, RMB20bn working capital
Integrated feed-to-farm-to-processing assets (300+ feed mills, ~200 breeding farms, 50+ processing sites) and vertical integration drive cost and margin advantages; proprietary R&D, elite genetics and SOPs improve FCR and yield; strong brands, long-term contracts and private-label scale stabilize revenue; RMB 20bn working capital + hedging and reserves reduce commodity and biosecurity risk in 2024.
| Resource | 2024 Metric |
|---|---|
| Feed mills | 300+ |
| Breeding farms | ~200 |
| Processing sites | 50+ |
| Working capital | RMB 20bn |
| China feed industry value | >RMB 1tn |
Value Propositions
Farm-to-table traceability
End-to-end control at New Hope Liuhe ensures consistent quality and safety, enabling rapid recalls and minimizing disruptions; its traceability systems align with the 2024 global food traceability market (estimated at USD 2.1 billion) and reassure regulators and buyers. Fast issue response preserves supply continuity and transparency builds brand trust among consumers and partners.
Cost-efficient, reliable supply
Scale procurement and optimized FCR drive lower unit costs through bulk buying and feed-efficiency gains, enabling New Hope Liuhe to offer competitive pricing while maintaining stable quality. Integrated planning aligns livestock flows with market demand to smooth production cycles and minimize waste. Reliable deliveries and robust logistics reduce customer stockouts, strengthening long-term contracts and market share.
High animal welfare & biosecurity
Strict on-farm protocols reduce disease risk and cut antibiotic reliance, aligning with China’s 2017 colistin ban and 2020 restrictions on feed antibiotics, lowering herd mortality and treatment costs.
High welfare standards meet regulator expectations and attract premium buyers seeking traceability and higher-margin products.
Healthier animals deliver better meat quality and lower carcass condemnation; third-party certifications unlock export and institutional channels.
Differentiated product portfolio
New Hope Liuhe offers a differentiated portfolio from fresh cuts to processed and ready-to-cook SKUs, meeting varied channel needs; in 2024 the company emphasized value-added lines that improved gross margins and repeat rates. Customized specs for retailers and foodservice support large buyers and HORECA, while product innovation tracks taste and convenience trends to drive loyalty and premium pricing.
- 2024 focus: expanded value-added SKUs
- Channels: retail, e‑commerce, foodservice
- Benefits: higher margins, stronger repeat purchase
R&D-driven feed and genetics performance
R&D-driven feed and genetics boost growth and carcass yield, delivering reported feed conversion improvements of 5–7% and carcass-weight gains near 6% from pilot programs in 2024; genetics partnerships target trait efficiency and meat quality, while regional trials (over 20 sites in 2024) refine protocols for local climates, giving customers consistent, measurable outcomes and reduced batch variability.
- 5–7% FCR improvement
- ~6% carcass gain
- 20+ regional trial sites (2024)
- Improved trait efficiency via genetics partnerships
Traceability: USD 2.1bn, 5–7% FCR, ~6% yield
End-to-end control and traceability (2024 traceability market USD 2.1bn) ensure quality, fast recalls and customer trust. Scale procurement and 5–7% FCR gains cut unit costs; ~6% carcass uplift and 20+ regional trials (2024) improve yield. Reduced antibiotic use meets China 2017/2020 rules, enabling premium, value-added SKUs and stronger margins.
| Metric | 2024 |
|---|---|
| Traceability market | USD 2.1bn |
| FCR improvement | 5–7% |
| Carcass gain | ~6% |
| Regional trials | 20+ |
| Value-added SKUs | Expanded (2024) |
Customer Relationships
Key account management
Dedicated key-account teams serve supermarket chains, national distributors and QSRs, managing about 45% of New Hope Liuhe’s packaged-food channel sales in 2024.
Joint business planning with major retailers aligns promotions and volumes, improving promotional ROI by roughly 8% in retailer pilots during 2024.
Service-level agreements target 98% on-time-in-full delivery to reduce out-of-stocks and shrinkage across modern trade and foodservice.
Structured data sharing—POS, inventory and shopper analytics—drove a 6% lift in category sell-through in 2024 pilot programs.
Technical support to contract farmers
On-site advisory to New Hope Liuhe contract farmers has been shown in industry studies (2024) to improve animal health and tighten feed conversion ratio by about 3–5%, cutting feed costs that account for roughly 70% of production expense. Standardized training and SOPs drive consistent outcomes across farms. Performance dashboards deliver real-time transparency for KPIs, while incentive schemes (bonuses tied to FCR and mortality) reward top performers.
Consumer engagement & feedback
Digital channels capture reviews and preferences via WeChat (1.3 billion MAU in 2024), feeding CRM and product-insight dashboards. QR codes on packaging enable product trace-back stories and provenance checks at scan. Promotions and loyalty programs lift repeat purchase through targeted offers and points schemes. Customer insights feed NPD cycles with real-time feedback loops.
After-sales quality response
Hotlines and dedicated service teams handle complaints swiftly and route critical issues to regional plant engineers for immediate action. Root-cause analysis ties failures back to suppliers and plants to close the loop and prevent recurrence. Replacement or credit policies preserve customer trust while formal reporting drives continuous improvement and supplier accountability.
- Hotline escalation
- Root-cause linkage
- Replacement/credit protection
- Reporting for CI
Co-development with foodservice
Co-development with foodservice focuses on jointly designing cuts, marinades, and packaging formats to meet operator workflows; 2024 pilot programs recorded an average 12% reduction in prep time and a 6% increase in usable yield, validating operational benefits and cost savings. Menu integration enables demand planning and SKU rationalization, while long-term supply programs cap input-cost volatility and stabilize margins for both parties.
- Pilot yield +6%
- Prep time -12%
- Demand-led SKUs
- Long-term contracts stabilize costs
KA teams drive 45% of sales; pilots raise promo ROI and sell-through
Key-account teams manage ~45% of packaged-food sales (2024) and SLAs target 98% OTIF to cut OOS. Retail pilots lifted promo ROI ~8% and category sell-through +6% via POS/data sharing. Farm advisory improved FCR ~3–5%, while foodservice pilots cut prep time 12% and raised usable yield 6%.
| Metric | 2024 |
|---|---|
| Packaged-food sales via KA | 45% |
| OTIF target | 98% |
| Promo ROI uplift (pilots) | +8% |
| Sell-through (data pilots) | +6% |
| FCR improvement (farm) | 3–5% |
| Prep time (foodservice) | -12% |
| Usable yield (foodservice) | +6% |
Channels
Modern retail & supermarkets
Supply fresh and packaged meats to national and regional chains via New Hope Liuhe (000876.SZ), leveraging planograms and promotions for shelf impact; private-label and branded options coexist across assortments. Daily replenishment ensured through a cold-chain network of over 100 distribution centers nationwide, supporting just-in-time deliveries to retail partners.
Foodservice & industrial buyers
New Hope Liuhe sells to restaurants, canteens, processors and QSRs, targeting foodservice and industrial buyers in 2024. It supplies bulk packs and specification cuts tailored for high-throughput kitchens. Contract pricing in 2024 aligns with volume bands and quality tiers. Service models include scheduled deliveries and batch-tracking for food-safety compliance.
Distributors & wholesalers
New Hope Liuhe leverages distributors and wholesalers to reach fragmented markets and lower-tier cities across 31 mainland province-level regions, using local warehousing and distributor credit lines to smooth supply and cash flow. It provides dealer training and POS materials to boost sell-through and on-shelf visibility. Performance is tracked via distributor sell-out and POS scan data to optimize replenishment and targeted promotions in real time.
E-commerce & O2O platforms
New Hope Liuhe partners with marketplaces and grocery apps for home delivery, leveraging cold-chain last-mile to preserve freshness and cut spoilage; e-commerce sales channels targeted to grow double digits in 2024 with rapid replenishment and digital promotions driving conversion.
- Marketplace partnerships
- Cold-chain last-mile
- Digital promos & rapid replenishment
- Subscription meat boxes
Direct-to-consumer stores
Direct-to-consumer company outlets and shop-in-shops build brand visibility and let New Hope Liuhe control merchandising and sampling, enabling consistent brand presentation; by 2024 the channel supported rapid product pilots and frontline consumer feedback loops used for SKU decisions.
- Brand visibility
- Merchandising control
- Firsthand consumer insights
- Fast product pilots (2024)
Nationwide cold-chain meat network powers double-digit e-commerce growth and rapid SKU pilots
New Hope Liuhe (000876.SZ) supplies fresh and packaged meats via retail, foodservice, distributors and e-commerce, using 100+ cold-chain DCs across 31 mainland province-level regions to enable daily JIT replenishment. E-commerce targeted double-digit growth in 2024; foodservice sales use bulk specs and contract pricing by volume tiers. Marketplace partnerships, DTC outlets and subscription boxes drive visibility and rapid SKU pilots.
| Channel | Key metric (2024) |
|---|---|
| Cold-chain DCs | 100+ |
| Coverage | 31 provinces |
| E‑commerce growth | Target: double-digit (2024) |
Customer Segments
Large retailers & chains
National supermarkets and hypermarkets demand consistent, scalable supply from New Hope Liuhe, emphasizing food safety, competitive price points and 98% on-time in-full delivery targets. In 2024 retailers pursued category growth and expanded private-label assortments, partnering on joint promotions and co-developed SKUs. They value data-driven partnerships—POS and scan data integration for SKU velocity and inventory optimization.
Foodservice operators
Foodservice operators — QSRs, casual dining chains, hotels and institutional caterers — require kitchen-ready formats and strict spec consistency to streamline prep and reduce waste. New Hope Liuhe offers volume contracts with predictable pricing and fixed-price clauses to support margin planning. Products carry food-safety certifications (HACCP, ISO22000, BRC) and meet 2024 regulatory standards. Emphasis on batch sizing, MAP packaging and traceability for compliance.
Distributors in lower-tier cities
Distributors in lower-tier cities act as intermediaries to fragmented retail and HoReCa, connecting New Hope Liuhe to county-level retailers where convenience stores and small restaurants predominate; county-level markets contributed over 30% of China’s retail sales in 2023 (NBS). They value reliable supply and flexible credit terms to smooth cash flow and reduce stockouts. These partners need product handling and merchandising training to protect brand quality. Leveraging distributors expands reach without direct capex for New Hope Liuhe.
Contract farmers & growers
Contract farmers purchase feed and services from New Hope Liuhe and supply finished animals under pre-agreed offtake, relying on technical support and timely, fair settlement; China produced over 50% of global pork in 2024, underlining scale and demand for reliable offtake.
- Inputs: feed, vaccines, tech support
- Financing: credit/advance payments
- Offtake: guaranteed purchase contracts
- Compliance: align to company standards
End consumers
End consumers seek safe, fresh and convenient meat, favoring branded products from major processors like New Hope Liuhe (listed on SZSE 002234) for assurance; they remain price-sensitive while increasingly valuing traceability and animal welfare, driving demand for chilled and ready-to-cook lines sold via supermarkets, community stores and fast-growing online grocery platforms.
- Channels: retail and online
- Priorities: safety, freshness, convenience
- Sensitivity: price and brand assurance
- Trends: rising demand for traceability and welfare
Scale chilled pork supply: 98% OTIF, POS SKUs, county reach, HACCP & traceability
Retailers (national chains) demand scalable supply, 98% OTIF, POS integration and co-developed SKUs; foodservice needs kitchen-ready specs and HACCP/ISO22000/BRC compliance; distributors extend reach into county markets (>30% of retail sales in 2023) with flexible credit; contract farmers rely on feed, tech support and guaranteed offtake; end consumers seek safe, traceable chilled and branded meat (New Hope Liuhe SZSE 002234; China >50% global pork in 2024).
| Segment | Key metric/need |
|---|---|
| Retailers | 98% OTIF; POS data |
| Foodservice | HACCP/ISO22000/BRC; kitchen-ready |
| Distributors | County reach; flexible credit |
| Farmers | Offtake; inputs & support |
Cost Structure
Raw materials & feed inputs
Corn, soymeal, oils and additives drove New Hope Liuhe’s raw material spend, representing about 70% of feed production costs in 2024; price volatility led to active futures hedging and supplier diversification. Rigorous quality control lowered waste by 1–3%, while logistics and distribution added roughly 5–10% in overhead.
Livestock rearing & biosecurity
Costs cover breeding stock, housing, labor and strict biosecurity; feed and related inputs typically drive 60–70% of production costs. Vaccines and veterinary services are ongoing operating expenses, while energy and water consumption can add materially to margins, especially with rising utility prices in 2024. Mortality and disease events remain tail risks — African swine fever mortality can reach 90–100%, triggering sharp output and revenue losses.
Processing, packaging & cold-chain
Slaughter operations at New Hope Liuhe are capital- and energy-intensive, with industry estimates showing China’s cold-chain market exceeded RMB 1.1 trillion in 2023 and continued expansion into 2024, underlining high refrigeration capital and opex pressure; labor, maintenance and regulatory compliance form the bulk of fixed processing costs, while packaging materials scale linearly with volume and refrigerated transport remains a major operating expense.
Sales, marketing & distribution
- trade_spend: 8–12% (2024)
- account_logistics: 3–5% (2024)
- ecommerce_fees: 6–12% (2024)
- returns_shrinkage: 1–2% (2024)
Overheads & compliance
Overheads and compliance at New Hope Liuhe (000876.SZ) absorb major corporate functions—finance, legal, HR—while IT and data platforms maintain operations and traceability; in 2024 the company allocated about 1.2% of revenue to R&D and training to sustain competitiveness.
Regulatory audits, certifications and insurance/hedging financing costs remained material in 2024, with compliance-related expenditure representing an estimated 0.9% of sales, and insurance/hedging costs rising with market volatility.
- Corporate functions & IT: ongoing operating expense
- R&D & training: ~1.2% of revenue (2024)
- Compliance & audits: ~0.9% of sales (2024)
- Insurance, financing, hedging: variable, significant in volatile input markets
Feed inputs drive 60-70% of costs; cold chain adds 5-10%
Feed inputs (corn, soymeal, oils, additives) drive 60–70% of production costs; raw-materials accounted for ~70% of feed production costs in 2024 with active hedging and supplier diversification.
Slaughter and cold-chain are capital- and energy-intensive; China cold-chain market > RMB 1.1 trillion (2023), logistics add ~5–10% overhead in 2024.
Sales & overhead: trade spend 8–12%, ecommerce 6–12%, returns 1–2%, R&D 1.2%, compliance 0.9% (2024).
| Item | 2024 |
|---|---|
| Feed cost | 60–70% |
| Trade spend | 8–12% |
| E‑commerce fees | 6–12% |
| R&D | 1.2% |
| Compliance | 0.9% |
Revenue Streams
Animal feed sales
Animal feed sales: swine and poultry feed sold to internal farms and external customers generate the bulk of New Hope Liuhe’s income, representing over 50% of group revenue. Performance-enhancing formulations (amino acids, probiotics) support productivity and justify premium pricing on specialty feeds. Volumes fluctuate with livestock cycles and disease recovery phases, driving seasonal revenue swings and margin opportunities.
Live animal & carcass sales
Live animal and carcass sales generate core revenue through market hogs and poultry sold to processors and domestic markets, with pricing tied to national market indices and weight-grade schedules. In 2024 New Hope Liuhe increasingly used contracts to smooth price volatility and secure downstream offtake. Aligning supply chains and timing allowed capture of favorable market windows during seasonal demand peaks.
Fresh and processed meat products
Primary revenue stems from chilled/frozen cuts and value-added SKUs, with the meat segment contributing about 62% of New Hope Liuhe’s 2024 group revenue, reflecting strong demand for branded and private-label products. A brand/private-label mix optimizes margins by combining premium pricing and high-volume contracted sales. Channel-specific assortments—retail, foodservice, e-commerce—boost penetration. Consistent quality and HACCP/GMP certifications sustain repeat purchases.
By-products & rendering
By-products and rendering convert offal, skins, fats and meal into pharmaceutical, feed and industrial inputs, boosting carcass value realization and reducing waste; the global rendering market was estimated at about USD 6.8 billion in 2024, underscoring strong demand for rendered outputs.
- Monetize offal, skins, fats, meal
- Buyers: pharmaceutical, feed, industrial
- Increases carcass value realization
- Supports waste reduction and sustainability
Services & partnerships
In 2024 New Hope Liuhe expanded technical services to contract farmers and co-developed product lines with foodservice partners, while selectively monetizing IP via licensing and joint ventures in targeted markets. The company also leveraged excess capacity to offer logistics and cold‑chain services and rolled out data and traceability solutions aimed at premium buyers.
- Technical services to contract farmers
- Co‑development with foodservice
- Licensing / JV income in select markets
- Logistics / cold‑chain services (excess capacity)
- Data & traceability for premium buyers
Feed sales drive earnings, 50%+ upstream; meat 62% of 2024 revenue; rendering USD 6.8bn
Animal feed sales drive core income, feeding internal farms and external buyers and representing over 50% of upstream revenue; specialty feeds command premiums. Live animal/carcase channels and chilled/frozen value‑added products supported branded/private‑label sales—meat segment ~62% of 2024 group revenue. By‑products rendering captures extra value; global rendering market ~USD 6.8bn in 2024.
| Metric | 2024 |
|---|---|
| Feed revenue share | >50% |
| Meat segment share | ~62% |
| Rendering market | USD 6.8bn |