New Hope Liuhe Business Model Canvas

New Hope Liuhe heavily relies on contract farmers and breeding cooperatives, operating under a 'company + farmer' framework. This strategy allows them to scale up livestock production efficiently. In 2024, this partnership model was instrumental in managing their vast supply chain, ensuring a steady flow of high-quality livestock for their processing facilities.

These collaborations are crucial for driving standardized, modernized breeding practices across the agricultural sector. By working with individual farmers and cooperatives, New Hope Liuhe not only enhances its operational efficiency but also contributes significantly to rural economic development, boosting farmer incomes and fostering agricultural modernization.

New Hope Liuhe's key partnerships extend to financial institutions, securing vital funding for its extensive operations. These relationships are crucial for managing working capital, accessing credit facilities, and executing strategic investments. The company actively seeks equity investors for specific business units to bolster its financial health and reduce leverage.

In 2024, New Hope Liuhe continued to strengthen its ties with banks and explore strategic equity investments to optimize its financial structure. For example, the company's focus on improving its debt-to-asset ratio highlights the importance of these financial partnerships in supporting its growth trajectory and operational stability.

These financial collaborations are essential for funding capital expenditures, managing day-to-day liquidity, and pursuing long-term growth initiatives. The company's engagement with financial advisors also underscores the strategic importance of these relationships in navigating complex financial markets and capital structures.

New Hope Liuhe's key activities in meat processing and food manufacturing revolve around its vertically integrated operations. This means they handle everything from raising the animals to processing the meat and creating finished food products.

They focus on slaughtering and processing both pork and poultry, ensuring high standards of food safety and quality throughout the entire chain. This commitment extends to their manufacturing of deep-processed foods, offering consumers a wider range of convenient and safe options.

In 2024, New Hope Liuhe reported significant growth in its meat segment, with sales reaching 10.98 billion yuan in the first quarter, a 10.6% increase year-on-year. This demonstrates their successful execution of these key activities and their ability to meet growing consumer demand.

New Hope Liuhe's key activities encompass the entire agricultural value chain, focusing on producing and selling high-quality animal feed, efficient livestock farming, and robust meat processing. The company is actively expanding its international feed business, aiming to establish it as a significant third revenue pillar. In 2024, their meat segment saw a strong start, with first-quarter sales of 10.98 billion yuan, marking a 10.6% year-on-year increase.

The company's commitment to R&D and digital transformation is evident in its pursuit of advanced animal nutrition and breeding technologies, alongside the implementation of systems like the 'pig chip' to enhance operational efficiency. This focus on innovation is crucial for maintaining a competitive edge and driving down costs across their operations, with ambitious targets like reaching 20 million hogs annually.

New Hope Liuhe's vertically integrated supply chain is a critical activity, ensuring stringent food safety and quality from raw material sourcing to final product delivery. This end-to-end management is vital for building consumer trust. Their dedication to quality assurance is reflected in the continuous monitoring and improvement across all stages, from breeding to processing.

New Hope Liuhe's skilled human capital is a cornerstone of its operations, boasting a workforce exceeding 50,000 individuals. This vast team includes a substantial contingent of specialized professionals, such as veterinarians, animal scientists, and agricultural technologists. Their deep knowledge is indispensable for upholding rigorous standards in animal breeding, optimizing nutrition, and implementing effective disease prevention strategies across the company's extensive agricultural activities.

New Hope Liuhe's key resources include its vast physical infrastructure, proprietary technology, skilled workforce, strong financial capital, and established brand. These elements collectively enable its leadership in the global animal protein industry.

The company's physical assets, including numerous feed mills and breeding farms, support its massive production capacity. Its technological innovations, such as advanced genetic chips and digital nutrition systems, enhance animal performance and efficiency.

A workforce of over 50,000, comprising specialized professionals, ensures operational excellence. Financially, with over $16 billion in total assets and a revenue of $14.4 billion (trailing 12 months as of March 31, 2025), the company demonstrates significant scale and is actively managing its financial health.

Its market leadership, recognized as the world's largest animal feed producer, further solidifies its competitive position.

New Hope Liuhe's advanced breeding and farming expertise is a cornerstone of its value proposition, offering farmers access to superior genetics and cutting-edge cultivation techniques. This translates into tangible benefits like increased productivity and improved animal welfare.

The company's commitment to research and development in animal genetics, a key driver of its advanced breeding programs, directly empowers farmers to achieve higher yields. For instance, in 2023, New Hope Liuhe reported significant advancements in its swine breeding programs, leading to an average increase in litter size by 0.5 piglets per sow compared to the previous year.

Beyond genetics, New Hope Liuhe provides crucial technical support, guiding farmers on modern farming practices. This holistic approach ensures that farmers can optimize their operations, leading to better animal health and reduced mortality rates, which are critical for profitability in the livestock sector.

New Hope Liuhe ensures food safety and quality through strict supply chain control, offering traceable products from farm to fork. Their robust Safety, Health, and Environmental protection system guarantees adherence to stringent quality benchmarks, further reinforced by significant 2024 investments in food safety infrastructure to build consumer trust.

The company enhances farmer profitability by providing scientifically formulated animal feed that improves livestock health and growth efficiency. Coupled with advanced breeding programs, exemplified by a 2023 increase in litter size by 0.5 piglets per sow, and crucial technical support, New Hope Liuhe empowers farmers with superior genetics and modern practices to boost yields and reduce mortality.

New Hope Liuhe guarantees a reliable and diverse product supply, including specialized animal feeds, live animals, and processed foods, meeting broad market demands. Their 2023 production volumes, serving millions of livestock, highlight their extensive supply chain capabilities and commitment to consistent availability for agricultural and food industries.

Sustainability is central to New Hope Liuhe's strategy, focusing on resource conservation, such as reduced water usage reported in 2023, and circular agriculture models. They actively contribute to rural revitalization by creating economic opportunities and improving livelihoods, aligning business growth with environmental protection and community well-being.

New Hope Liuhe cultivates consumer trust and brand loyalty by ensuring the consistent delivery of safe, high-quality, and traceable food products. Their marketing highlights product reliability and the advantages of their comprehensive, integrated supply chain.

In 2024, New Hope Liuhe continued to invest in food safety technologies and transparent sourcing practices, aiming to solidify its reputation. This focus is crucial as consumer demand for ethically produced and safe food continues to grow globally, influencing purchasing decisions and fostering long-term brand affinity.

New Hope Liuhe's customer relationships are multifaceted, built on trust and mutual benefit across its diverse stakeholder groups.

For contract farmers, this involves providing crucial technical support and veterinary services, fostering a collaborative environment that ensures product quality and farmer success.

With business clients, the company emphasizes specialized account management to deliver tailored solutions, reinforcing long-term partnerships essential for their large-scale operations.

Consumer loyalty is cultivated through a consistent focus on safe, high-quality, and traceable food products, backed by transparent marketing of their integrated supply chain advantages.

New Hope Liuhe leverages major retail supermarkets and hypermarkets as a primary distribution channel for its processed meat and food products. This strategy ensures broad accessibility for its consumer brands, reaching both urban and rural consumers effectively. In 2023, China's total retail sales of consumer goods reached 47.15 trillion yuan, with food and beverage sales forming a significant portion, underscoring the importance of these high-traffic channels.

New Hope Liuhe employs a multi-faceted channel strategy to reach its diverse customer base. This includes a strong domestic sales network with regional teams and distribution centers, ensuring broad market penetration across China.

Internationally, the company has established operations in 15 countries, focusing on building overseas production bases and distribution channels, particularly in Southeast Asia, to serve global markets effectively.

The company also leverages major retail supermarkets and hypermarkets for its processed food products, alongside a growing e-commerce presence that taps into the significant online grocery market, enhancing consumer convenience and reach.

Furthermore, New Hope Liuhe serves the Food Service and Institutional Sales sector, acting as a key B2B supplier of meat and food ingredients to restaurants, hotels, and catering services, meeting the demand for bulk and standardized products.

Retailers and supermarket chains are a cornerstone for New Hope Liuhe, acting as the direct conduit to the end consumer. This segment includes everything from massive national grocery chains to smaller, independent grocers, all of whom purchase New Hope Liuhe's packaged meats and food items for resale. Their extensive reach is vital for broad market penetration and brand visibility.

In 2024, the retail grocery sector in China continued its robust growth, with major players like Yonghui Superstores and Walmart China reporting significant sales volumes. These chains are critical partners for New Hope Liuhe, leveraging their established distribution networks and customer loyalty to move substantial quantities of their products. For instance, major supermarket chains often dedicate prime shelf space to trusted brands like New Hope Liuhe, directly influencing consumer purchasing decisions.

New Hope Liuhe serves a diverse customer base, from large-scale commercial livestock farmers requiring feed and breeding stock to food manufacturers seeking reliable meat ingredients. Retailers and supermarkets are also key partners, facilitating direct access to end consumers who prioritize food safety and quality.

International agricultural enterprises represent another significant segment, particularly in regions with established New Hope Liuhe operations. The company provides these global clients with tailored animal feed solutions, contributing substantially to its international revenue.

Manufacturing and processing expenses are a significant component for New Hope Liuhe, encompassing the operational costs of their extensive network of feed mills, slaughterhouses, and food processing facilities. These expenses include crucial elements like energy consumption to power machinery and maintain temperature-controlled environments, ongoing equipment maintenance to ensure operational uptime and product quality, and the costs associated with packaging materials to preserve product integrity and facilitate distribution.

In 2024, New Hope Liuhe's commitment to efficiency in these areas is paramount. For instance, the company has been investing in upgrading its feed mill technology to reduce energy usage, aiming for a 5% reduction in electricity consumption per ton of feed produced. Furthermore, proactive maintenance programs for slaughterhouse equipment are designed to minimize downtime, which can otherwise lead to substantial losses in production capacity and increased repair costs.

New Hope Liuhe's cost structure is significantly shaped by its substantial investments in raw materials, primarily grains like corn and soybeans, which are essential for animal feed production. The company also incurs considerable expenses related to livestock breeding and rearing, including feed, veterinary care, and labor. Furthermore, manufacturing and processing operations, encompassing feed mills and processing facilities, represent a major cost area, driven by energy, maintenance, and packaging. These core operational costs are further amplified by significant outlays for its large workforce, covering wages, benefits, and training.

New Hope Liuhe's processed meat product sales, encompassing pork and poultry, are a significant revenue driver. In 2024, the company continued to leverage its extensive distribution network to reach various customer segments.

These sales are channeled through multiple avenues, including wholesale to retailers and food service establishments, as well as direct-to-consumer channels, ensuring broad market penetration and diversified income streams.

New Hope Liuhe's revenue is multifaceted, stemming from animal feed, live animal sales, and processed meat products. The company also diversifies through dairy and other value-added food items, with overseas fodder business emerging as a key growth area.