Genus backs out of pig partnership in China

27th May 2014 10:52

Genus has pulled out of a joint venture (JV) with Chinese pork processor Yunnan Shennong Agricultural Group (Shennong) due to tough market conditions.The partnership, first announced in February 2013, would have seen the FTSE 250-listed animal genetics company and its Chinese partner build and operate a 1,000-sow nucleus farm to support Shennong's expansion of its pig production operations.However, on Tuesday Genus said the companies had decided not to proceed with the JV at the present time due to the "current adverse market conditions for pig production in China"."No investment had yet been made by either party in the joint venture as land on which to build the farm took time to identify. Shennong and Genus will continue to discuss future collaboration opportunities as market conditions in China develop," Genus said.In the meantime, Shennong is continuing to use Genus' PIC genetics and "remains a valued customer", the company said.The stock was 0.% lower at 1,058.2p by 10:24.BC