COFCO Meat Holdings Limited and Beijing Yingherui Environmental Technology Co., Ltd. have joined hands to create a “1 + 2 + N” model for large-scale livestock manure treatment.

On August 8, 2017, Yingherui Environmental Technology and COFCO Jiajiakang (Yongcheng) Co., Ltd., a subsidiary of COFCO Meat Holdings Limited, officially signed a cooperation agreement. The two parties would conduct comprehensive cooperation on the resource treatment of manure generated from the pig breeding base in Yongcheng with an annual slaughter amount of 550,000 pigs. As the project undertaker, Yongcheng Liangying Agricultural Waste Treatment Co., Ltd. will accept and treat all manure generated from breeding for COFCO, and adopt the anaerobic method to produce biogas and implement grid connection for power generated with biogas to achieve the installed gross capacity of 2.5MW. The biogas residue and slurry will be used to improve soil quality of local farmland. The project is expected to have the total investment of RMB 136 million.

At present, the State Council and various ministries and commissions are carrying out in-depth action on the utilization of livestock manure resources, and accelerating the green development of the animal husbandry industry. By 2020, China will basically solve the problem of comprehensive utilization of manure generated from livestock breeding. In this context, the cooperation between Yingherui Environmental Technology and COFCO has created a new model for the leading breeding enterprises to entrust the industry-leading professional technology companies with manure treatment. Alliance between giants will have a profound impact on the industry development and competition pattern.

In recent years, Yingherui Environmental Technology has actively studied and explored a practical business model for the utilization of manure resources, which responds to the state-advanced PPP governance model with the participation of social capital. The 1+2+N, N2N and other models of Yingherui have been successfully applied, and have received high attention and recognition from all levels of government. Among them, the 1+2+N model is a brand new business model for Yingherui’s practice of professional technology and capital integration to support large-scale breeding enterprises. Under this model, Yinghe Rui will use manure generated from large-scale breeding and crop straws as the main raw materials and match the capital end and the leading breeding enterprises to invest in the construction of organic waste treatment centers focusing on biogas and biogas manure. Also, Yingherui will also cooperate with local government to guide the integration of downstream planting and derivative industries, including local special planting, high-end green organic planting, agricultural product processing, agricultural eco-tourism, etc. In this way, Yingherui will connect the upper and downstream industry chains to achieve organic combination of the industrial chain and value chain, as well as sustainable development. By promoting local agricultural supply-side reform, Yingherui will realize the comprehensive resource utilization of agricultural organic waste through the transformation and upgrading of local agricultural industry.