Yasheng Group, a high-growth diversified China-based agricultural company with US headquarters in California, has announced plans to expand farming operations in 2012.
The group currently utilizes advanced drip irrigation technology, which enables crops to get the best moisture and nutrients, reduces weed growth and use of pesticides, increases average yield per acre by 30%, saves over 40% of water use, and is radically changing traditional farmland irrigation in China.
In 2012 Yasheng Group plans to begin building a new 57,000 acre water-saving drip irrigation system on its existing farmland, which will further increase yield per acre.
It will also expand alfalfa production, with the goal of becoming a leading supplier for China's "healthy milk" market.
Alfalfa dry matter contains 15% -26% of crude protein, which can significantly improve milk protein content.
The company currently has a base which supports 19,000 acres of alfalfa with an annual production of 50,000 tons of hay, and 80,000 acres of appropriate uncultivated farmland, which is sufficient to support the further expansion of the alfalfa business.
Yasheng Group's potatoes are mainly used for finished-goods processing and are sold to well-known enterprises such KFC, Pepsi, and Oishi.
The company's potato products are primarily order-processed, which reduces the negative impact of fluctuations in prices.
Tiaoshan, one Yasheng Group's largest subsidiaries, currently produces over 70,000 tons of potatoes on 5,000 acres of farmland annually.
This year Yasheng Group will further develop its potato deep-processing business, and is working to add a 5,000 ton potato processing line to further integrate its supply chain.
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