New Hope Liuhe: Building an Integrated Agri-Food Business

In October 2018, LIU Chang (Angela), president of Beijing-based New Hope Liuhe (NHL), reflected on the company’s strategy. With sales of $ 9 billion and a presence in nearly 20 countries, NHL was China’s largest animal feed manufacturer and one of the leading producers and processors of pork and poultry. The company also marketed a variety of food products for consumers. This case describes NHL’s business start-ups, growth, and recent efforts to evolve from a feed manufacturer to an integrated agri-food company with an active presence throughout the chicken, duck and pork value chain. Substantial context is provided on the structure and development of this livestock industry in China, the food processing industry, and important topics such as food safety. This background is helpful in allowing students to assess the scale and scope of NHL evolution and consider what changes (if any) to corporate strategy need to be made in the context of this critically important market.

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