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Update on Genus Shennong Joint Venture in China

29 May 2014, at 9:25am

CHINA - Genus and Shennong will not proceed with the establishment of a joint venture at the present time.

Genus, a leading global animal genetics company, says that it has agreed with Yunnan Shennong Agricultural Group Co. Ltd. ("Shennong'') that Genus and Shennong will not proceed with the establishment of a joint venture at the present time.

Shennong, an integrated pork processor in the Yunnan province in China, had planned to expand its pig production operations. On 25 February 2013, Genus announced that it had signed an agreement with Shennong for the establishment of a new joint venture, to build and operate a 1,000-sow nucleus farm to support Shennong's expansion.

Due to the previously announced current adverse market conditions for pig production in China, Genus and Shennong have now decided not to proceed with the planned joint venture. 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.

Shennong is continuing to use PIC genetics in its existing pig production and remains a valued customer of Genus in China.