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1. Project Name: Fox and raccoon dog breeding and processing project of Zhaoyuan Farm, Heilongjiang Province

2. Location for Construction of the Project: Zhaoyuan Farm, Heilongjiang Province

3. Profile of the Project Principal:

    綏化農墾招商網訊：Zhaoyuan Farm is located on the left side of the lower reaches of the Nenjiang River in Zhaoyuan County, Daqing City, Heilongjiang Province. The place is easily accessible by means of highways, railways or waterways. It is 9 km away from Xinzhao Railway Station, 30 km from Lin-Zhao Highway, 150 km from Daqing and 230 km from Harbin. Its west side is just opposite to Da’an City, Jilin Province across the Nenjiang River. A simple wharf by the river is built by the farm. Ditches and channels densely distribute in the farm. The total annual output of fish is around 800 tons, which can provide abundant meat feed to foxes and raccoon dogs. Fox and raccoon dog breeding has more than twenty years’ experience in Zhaoyuan Farm, which is named by Heilongjiang Land Reclamation Administration as the largest fox and raccoon dog breeding base in the administration. Beidahuang Fox and Raccoon Dog Breeding Association of Heilongjiang Land Reclamation Administration has been set up and Nenyuan Fox and Raccoon Dog Breeding Specialized Cooperative has been established in the farm. The major animal breeding families are admitted by the cooperative as its members. Nenyuan fox and raccoon dog breeding network has been set up, aiming at marketization promoted by informatization. The cooperative provides guidance to the animal breeding families for them to make reasonable adjustment to the fox and raccoon species and animal farming structure, so as to avoid adverse effect of declining fur price on market. The farmers are also guided by the farm to build twenty cold storages, which can be used to store feed at ordinary times and store fur and hides when the market price becomes low. In this way, the market risk can be dealt with positively.

4. Project Construction: A fox and raccoon dog fur and hides processing factory will be built on a land area of 20,000 square meters. A European-style modern fox and raccoon dog breeding farm will be built on a land area of 30,000 square meters for raising 5,000 breeding foxes and raccoon dogs.

5. Source of Raw Materials and Market Situation

Source of Raw Materials: The characteristic animal breeding in Zhaoyuan Farm focuses mainly on blue fox, silver fox and the Wusuli raccoon dog. Now the number of fox and raccoon dog fox raccoon on hand has reached 40,000, the quantity of supply to the market can be around 50,000 blue foxes, 30,000 silver foxes and 40,000 raccoon dogs each year.

Market Situation: In recent years, fur and hides of fox and raccoon dog are widely used for apparel decoration and fur clothing production on both international and domestic markets. Their market price keeps rising. Now we do transactions with customers in Harbin, Hebei, Shandong and other places and stable market sales channels have been established.

6. Estimate on Investment in the Project

It is planned to invest 20 million Yuan in total in the project, including 10 million Yuan as investment in fixed assets for a fox and raccoon dog fur and hides processing factory and 10 million Yuan for fox and raccoon dog breeding. The construction period will be one year for the project. The payback period will be 3 years, with a rate of return 33%.

7. Economic Benefits of the Project

After the project is put into production, 150,000 pieces of hides can be processed each year for profit of 4.5 million Yuan. 150,000 foxes and raccoon dogs can be provided to the market each year for profit of 3 million Yuan. The total profit can reach 7.5 million Yuan.

8. Patterns of Cooperation: Joint venture or cooperation