Cobb-Vantress Inc., a poultry research and development company in Siloam Springs, has signed a joint venture agreement with integrated chicken producer Hubei Tong Xing Agriculture Co., LTD., according to a report in World Poultry magazine.
$35 million will be invested in establishing grandparent farm and hatchery facilities in the city of Suizhou in Hubei province, west of Shanghai, to start producing parent stock early in 2015.
The joint venture company, officially known as Hubei Tong Xing Cobb Breeding Company, will be 85 percent owned by Cobb and 15 percent by Tong Xing, with an initial production target of five million parents a year.
China represents the second largest market for broiler breeding stock in the world, with chicken the fastest growing sector of meat production in the country.
Cobb-Vantress, founded in 1916, is a subsidiary of Tyson Foods Inc. of Springdale.