Macau Eiji Company Limited, a subsidiary of Sino Agro Food, has been awarded a sales contract worth an estimated $18 million.
Macau Eiji will supply 4,000 head of Simmental and Charolais cattle to a Chinese company that buys and sells cattle throughout China, according to Sino Agro. The cattle will weigh between 600 kg to 750 kg with meat content at 52 percent or more of DWT (deadweight tonnage) at time of delivery, the company said. Delivery of the first 1,000 head of cattle will be by Dec. 31 with the remaining 3,000 head delivered through fiscal year 2013.
Wholesale prices for live cattle are currently averaging $3.94-$4.73/Kg depending on locality (i.e. North or South China). Sino Agro said the company could realize revenues of approximately $4.1 million - $4.7 million during Fiscal Year 2012 from the deal, based on current demand and current wholesale prices. Sino Agro said the company could realize revenues of approximately $12.3 million - $14.1 million during fiscal year 2013, barring a downturn in demand and prices.
