Genus plc announced that it has signed a second porcine joint venture agreement in China. This new JV is for a 1,000 sow nucleus farm with Yunnan Shennong Agricultural Group Co. Ltd. The JV expands further Genus porcine business in China and is in line with its corporate strategy to focus on growing in key markets and segments such as the Chinese integrated pork producer segment.

Genus is currently implementing a growth strategy through JV partnerships with leading integrators and expanding its production base in China. Genus will be a 65% partner in the JV through a cash investment of approximately £2.7 million. The JV will operate nucleus farm, scheduled for completion within the next 12 months.

Genus will provide pureline porcine stock from the Genus porcine genetic division's (PIC) global high health pyramid to stock the farm. The JV farm will be managed by Genus. The structure enables world class farm practices to be implemented and Genus' intellectual property to be protected.

In addition, the JV structure will enable the introduction of a royalty revenue model which is already in operation across Genus' porcine businesses in other key geographies. The JV will produce crossbred grandparent females. Shennong will use at least 40% of the output to support the expansion of its pig production programme.

The remaining animals will provide important additional volume to support the growing sales of PIC breeding animals in China. Once in full operation, which is expected to be in 2014, the herd will underpin production of 2.5 million slaughter pigs per year.