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Beer with beef! Venus beer Zhang Tieshan cross-border cattle raising, why is it no longer "focused"?

author:Great River Finance Cube

<b>[Dahe Bao, Dahe CaiFang] (Reporter Xu Bing)</b> The latest news came from a veteran beer enterprise in Henan: raising cattle.

On July 12, the reporter of Dahe Bao and Dahe Caifang learned that recently, the construction project of the Red Bull Breeding Base of Jinxing Group in Wuxian County was started in Anliang Town, Pingdingshan City. It is understood that the project plans a total investment of 500 million yuan, covering a total area of more than 500 acres, and building a new standardized shed circle of 50,000 square meters. After the completion of the project, it will achieve an annual inventory of 20,000 heads, 30,000 beef cattle, and sales income of 1 billion yuan.

This means that Venus Group has officially entered the aquaculture industry.

So, why did Venus, who has focused on the main beer business for nearly forty years, suddenly cross the border to raise cattle? What is the logic behind it? What is the current status of the main business?

Beer with beef! Venus beer Zhang Tieshan cross-border cattle raising, why is it no longer "focused"?

Why cross-border cattle raising

"This is normal market operation." On July 12, the reporter interviewed the relevant person in charge of Venus Group for the first time, he explained: "The reason why Venus Group cross-border cattle raising is based on the company's optimism about the development prospects of the beef cattle industry on the one hand, and on the other hand, Wuxian has a good investment environment and natural conditions. ”

Beer with beef! Venus beer Zhang Tieshan cross-border cattle raising, why is it no longer "focused"?

According to a project plan of Venus Group provided by the person in charge, the reasons for raising cattle were elaborated in detail:

In 2020, China's beef output was 6.72 million tons, an increase of 0.8% over the previous year. Among them, in the first half of the year, affected by the new crown pneumonia epidemic, the number of beef cattle produced nationwide fell by 2.1%. In the second half of the year, with the effectiveness of domestic epidemic prevention and control and the gradual recovery of consumption, the emergence of cattle and sheep out of the pen has gradually accelerated. In the third quarter of 2020, cattle outflows increased by 45.9% compared with the second quarter, and the fourth quarter continued to increase by 21.3% compared with the third quarter... 2021 is in the middle and late stages of the cattle cycle, by the rural breeding ban regulations, brought about by a large number of rural cattle households, cattle raising scale greatly reduced, reduced cow production capacity, these two specific reasons superimposed together, the formation of a special cattle cycle, this cattle cycle through the forecast, it takes 2 to 3 years to terminate the end, 2021 is still within this cattle cycle, live cattle price market basically will not change, still in an upward trend.

"Red Bull is famous throughout the country, but it lacks large enterprises with industrialized and large-scale operation. At present, there are only three or five local small and medium-sized cattle breeding enterprises, and the project invested by Venus Group will become the largest cattle breeding project in the local area. The above-mentioned person in charge said.

According to the project plan, "Red Bull of Wuxian County" is named because of its origin in Wuxian County and the red color of the coat, which is one of the eight best breeds of cattle in the country, and the only local excellent breed named after the county in the country. The reason why "Red Bull" is famous and evaluated by industry experts is mainly because it can produce snowflake beef. It is estimated that the meat yield of red bull snowflake beef in a single county can reach more than 20%. The unsaturated fatty acids of red beef account for more than 58% of the total fatty acids, rich in conjugated linoleic acid, which has the effect of melting lipids, softening blood vessels and fighting cancer, and is known as the "king of beef".

Jinxing Group also said that the construction of the project can accelerate the expansion and increment of the "Red Bull of Wuxian County", quickly establish the core breeding population of Red Bull in Yixian County, and provide high-quality resources for the development of the Red Bull industry in Yixian County; at the same time, effectively lengthen the industrial chain of Red Bull in Yixian County, improve the development and utilization system of The Red Bull industry, and promote the development of the whole product chain such as forage planting, feed reserves, Red Bull breeding, slaughtering and processing cold chain logistics, trade, "Internet +", cultural tourism, etc., which has a greater role in promoting local social and economic development.

The total investment is 500 million yuan

It is expected to produce 30,000 heads per year

Beer and cattle breeding seem to be two completely unrelated fields, lacking both corresponding synergy and industrial complementarity. At the same time, the debt crisis of Isai beef, another company in Henan, has also made many people in the industry worry about this industry.

"The company's management has thought it through and made corresponding risk estimates." said the above-mentioned person in charge.

According to the person in charge, in recent years, the company's annual net profit has been between 200 million yuan and 400 million yuan. The reporter noted that the total investment of the project is planned to reach 500 million yuan. For Venus Beer, the scale is not small.

It is understood that the project covers an area of more than 500 acres, with a new standardized shed circle of 50,000 square meters, completed in three phases, and simultaneously built corresponding feed warehouses, forage warehouses, green storage cellars and other facilities; at the same time, the construction of auxiliary production systems such as hydropower and living areas, office areas and other supporting facilities. After the completion of the project, it will achieve an annual inventory of 20,000 heads, 30,000 beef cattle, and sales income of 1 billion yuan.

For future products, Venus Group also made a clear plan in the plan:

The company will use the fine breeding bull frozen essence of the red bull in The county to cold match the introduced "Qinchuan" high-generation cows, breed high-quality calves, use high-quality cow calves for herd expansion, and other calves for fattening and feeding.

The main sales are divided into three ways: one is to cooperate with meat processing enterprises to provide them with processing raw materials; the second is to implement standardized production, industrialized operation, take the road of ecological agriculture and animal husbandry, and create a pollution-free meat brand, so as to obtain greater benefits; the third is to establish a marketing network, the company directly contact the meat products wholesale market, while establishing distribution business, broadening the marketing market.

Looking for the impossible "possible"

"In fact, this project was invested by Henan Snowflake Red Bull Technology Co., Ltd., a subsidiary of Jinxing Group." The above-mentioned person in charge revealed to reporters that this is not the first time that Venus Group has crossed borders, and its subsidiaries have been involved in real estate.

However, the reporter of Dahe Bao and Dahe Caifang found through tianyan that in the list of investment enterprises under Venus Group, Henan Snowflake Red Bull Technology Co., Ltd. is not the subsidiary company it said. However, the company was invested and established by Zhang Tieshan, who is the chairman of Venus Beer Group. According to Tianyan, the company was established on May 24, 2021, with a registered capital of 150 million yuan, 90% of the shares held by Zhang Tieshan, and 5% of the shares held by Yao Zhongwei and Liu Chunhui.

Beer with beef! Venus beer Zhang Tieshan cross-border cattle raising, why is it no longer "focused"?

In addition, Zhang Tieshan also has a real estate company under his name, named "Kunming Jinxing Real Estate Development Co., Ltd."

Zhang Tieshan once said in an interview with the media: "For more than three decades, Venus has done one thing, that is, beer, focusing on being a good beer that Chinese consumers can afford, like to drink, and drink and want to drink." However, he also said that focusing on one thing is not as simple as sticking to it. You need to pursue, keep breaking through. Because the better you are, the harsher the world is. The only thing you can do is study and continue to innovate to create possibilities that others think are impossible.

Zhang Tieshan said in his speech at the groundbreaking ceremony that Venus Beer Group was founded in 1982 and has built 15 beer factories in Guizhou, Yunnan, Sichuan, Shanxi, Shaanxi, Gansu, Guangdong and other provinces and Henan's Zhoukou, Anyang, Nanyang, Xinyang, Luohe, Sanmenxia, Zhengzhou and other places in the past 40 years, with an annual beer production capacity of 2 million tons, ranking first in Henan and the top six in the country. At the same time, it has also won the titles of Outstanding Leading Enterprise of Agricultural Industrialization in Henan Province and Top 100 Enterprises of Henan Province.

Beer with beef! Venus beer Zhang Tieshan cross-border cattle raising, why is it no longer "focused"?

In fact, as the only remaining local beer enterprise in Henan, its glory is not as good as before. In the era of craft beer with upgraded consumption, its market share is also being continuously eroded by brands such as Qingdao, Snowflake and Budweiser. According to the data disclosed by the China Liquor Industry Association, in 2020, the Chinese beer market was divided among the five major groups, and the market share of the Chinese beer industry in the five major groups of China Resources Beer, Tsingtao Beer, AB InBev, Yanjing Beer and Carlsberg was as high as 92%.

Beer with beef! Venus beer Zhang Tieshan cross-border cattle raising, why is it no longer "focused"?

Industry insiders said that this cross-border may be Zhang Tieshan and Venus Beer looking for impossible "possibilities".

Editor-in-charge: Chen Yuyao | Review: Li Zhen | Director: Wan Junwei

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