Loss 12 Billion 100 Million &Nbsp; Dangerous Shuanghui: Fall Or Stand Up?

Insiders with Shuanghui responsible for sales told reporters that the operation of the lower shelves started from the first tier cities of Beijing and Shanghai, and then spread to the two or three tier cities throughout the country.

According to the Shuanghui sales personage, compared with the sales volume of 5000-6000 tons per day in Shuanghui, the sales volume of Shuanghui in the whole country is only about 1000 tons.

Among the two categories of meat products and chilled meat in Shuanghui, the former suffered the greatest loss.

In fact, the main products of Shuanghui Jiyuan factory are chilled meat and very few meat products.

But the explanation of the foregoing salesmen is that meat products sold in the Shang Chao channel are encountered, and chilled meat is easy to digest in the market because of its short shelf life.

According to the 2010 semi annual development of Shuanghui, the proportion of meat products sold in Shuanghui is still far higher than that of chilled pork.

According to the reporter, in the first half of 2010, Shuanghui developed meat products accounted for 60% of the total sales revenue, while chilled meat was 33.35%.

But the Shuanghui chain store, which sells mainly chilled meat, has also been hit hard.

According to media reports, some of the franchisees in some areas have changed their brands after "lean meat essence" incident and become agents of other brands.

Bandung said in the "ten thousand people congress", "there are competitors who actively oppose our distributors and franchisees".

Nomads said in the report that the special stores with fresh frozen products were therefore shut down, and dealers everywhere were asked to "actively coordinate the terminal owners' opening business as soon as possible".

A week ago, the data released by Shuanghui said that the "lean meat essence" incident affected the sale of Shuanghui about one billion yuan, and according to the latest data released by Shuanghui in the "ten thousand people's Association", from March 15th to March 31st, the "lean meat essence" incident has affected the Shuanghui sales of more than 15 billion.

At present, the impact is continuing.

In addition, Shuanghui said that at present, the direct loss of Jiyuan Shuanghui processing meat products and fresh frozen products is estimated to be about 30000000 yuan.

Prior to that, according to the Shuanghui statement, "Jiyuan Shuanghui has been required to recover products circulated in the market under the supervision of relevant government departments".

Shuanghui's brand reputation has been greatly hurt. Shuanghui brand has been questioned for more than 20 years, and the loss is incalculable.

In Bandung's view, this is even more "unbearable".

{page_break}

The 15 day: Shuanghui gradually bleached.

In fact, in March 15th CCTV's "lean meat essence" program was broadcast, and Bandung, who is attending the "two sessions" in Beijing, has already had a premonition of the seriousness of the situation.

At 2:30 on the morning of 16, Bandung rushed back to Luohe from Beijing and immediately hosted a special meeting of the Group executives. The meeting lasted until 6 in the morning.

Participants revealed that the atmosphere at that time was very dignified.

The meeting decided to issue a statement immediately and apologize to consumers for the first time.

At the same time, the factory in Jiyuan should be ordered to stop production and self-examination, and the deputy general and relevant personnel of the group's production should be sent to Jiyuan factory for rectification and treatment.

On the 17 day, Shuanghui reissued a statement that, in addition to saying that it would take back the factory products in Jiyuan and dispose of the responsible persons, it also mentioned that since March 16th, the pig slaughtering of all the factories of the subordinate factories has been inspected online.

Then, on March 23rd and 25, Shuanghui held several national distributors' conferences and suppliers' meetings with thousands of people to stabilize the distributors and suppliers.

It is interesting that from the beginning of the dealer conference, the Bandung and Shuanghui, who had been silent in front of the media, began to invite reporters sitting outside the hall to attend.

In fact, the question and answer set by the "ten thousand people's Congress" was also proposed by Bandung.

The internal staff of Shuanghui had proposed to pfer the media Q & A to a conference hall. But before the meeting began, Bandung rejected the proposal and asked the media to ask questions at the meeting.

According to the analysis, Bandung wants to use the "ten thousand people congress" to change the outsiders' accusations and opinions about the "opaque" of Shuanghui.

Media problems reflect the views and doubts about Shuanghui in the market at present.

Previously, it seems that an important reason for the Shuanghui lean meat incident is the lack of proper control over the upstream aquaculture industry while expanding capacity.

Shuanghui's "problem pig" is provided by farmers.

Shuanghui is clearly prepared.

The reporter noted that both nomads of Bandung and subsequent speeches have mentioned many times in their reports that in the future, "Shuanghui group will speed up the development of aquaculture, further improve the industrial chain of Shuanghui, and enhance the control power of enterprises on the upstream and downstream industries chain so as to ensure product safety".

According to nomadic theory, the next step is to build a "slaughterhouse" where Shuanghui is located, where the farm will follow, and build a breeding base of 500 thousand plants around the factory supporting facilities, and build a feed processing plant with an annual output of 200 thousand tons, so as to realize the safety control of the hog resources in the upper reaches.

The proportion of future autotrophic pigs to all slaughtered pigs is about 30%, says Wan.

According to the reporter, at present, the only self built commercial pig breeding base in Shuanghui is located in Yexian County, Luohe, with a scale of 200 thousand. It was established in 2009.

Guo Kai, general manager of Shuanghui group breeding division, told reporters that in fact, before the "lean meat essence" incident, the group also had a large-scale reproduction of Yexian County pig farm mode.

In the "accident area" of Jiyuan, a 500 thousand scale farm was being built at that time.

Nomads also indicated that in addition to self raising, the focus of future purchases of Shuanghui will also be shifted to large-scale farms, with a long-term cooperation agreement signed.

Shuanghui group also announced the establishment of the Shuanghui food safety supervision Committee on the "ten thousand people's Congress". Wan Long himself served as director and introduced the China Inspection and Certification Group as the third party quality inspection organization.

3 billion: the cost of standing up?

Can we make Shuanghui get rid of the fate of Sanlu from a series of safety control measures such as head to head inspection and the strategic planning for upstream development?

In terms of increased safety and control measures, will the cost pressure directly bring about a worsening of Shuanghui? According to Bandung, as the "lean meat essence" is changed to head by head inspection, it is expected to increase the detection cost of "lean meat essence" for more than 3 billion in the whole year.

How to digest these 3 billions of products is a problem: if we pass on to the lower reaches and drive up the price of products, we will further affect the competitiveness of Shuanghui products.

"We can digest as much as we can."

Bandung said.

Before that, he did not deny that some of them would be pferred to the lower reaches.