In-Depth Analysis of New Hope's Overseas Expansion Strategic Layout

As one of China’s largest agricultural and livestock enterprises, New Hope Group’s core business segment, New Hope Liuhe Co., Ltd. (Stock Code: 000876.SZ), has grown into a world-leading feed and pig farming enterprise since its listing on the Shenzhen Stock Exchange in 1998 [0].

With the vision of “becoming a leader in the agricultural and food industry” and the mission of “serving farmers and benefiting consumers”, the company is committed to integrating global resources to build a safe and healthy large food industry chain [1].

New Hope’s international development began in 1999, making it one of the first enterprises in the industry to “go global”. After 25 years of in-depth layout, the company has invested in

in through self-construction, mergers and acquisitions, and cooperation [2].

In 2024, the company achieved total operating revenue of

, of which overseas revenue exceeded , and feed sales reached . It is the first Chinese agricultural and livestock listed company with overseas revenue exceeding RMB 20 billion, ranking among the leading players in the industry in terms of scale [2][3].

New Hope’s international journey began in 1999, when the company established its first overseas feed company in

, pioneering the “going global” of Chinese feed enterprises [4].

With its geographical advantages, huge domestic demand market, and low labor costs, Vietnam has become the first choice for Chinese feed enterprises to expand overseas. During this stage, New Hope mainly entered overseas markets through

(building new factories), and quickly established a production capacity foundation by replicating its successful domestic business model.

Entering the 2010s, New Hope accelerated its overseas expansion pace. The company successively entered markets such as

, gradually building an international network covering Southeast Asia, South Asia, and North Africa [1].

During this stage, New Hope established stable and long-term cooperative relationships with well-known domestic and foreign enterprises and institutions including the International Finance Corporation (IFC) of the World Bank, Temasek, China Investment Corporation (CIC), Cargill (US), and Mitsui & Co. (Japan). It innovated its overseas development model and realized the allocation and integration of high-quality agricultural industry resources [2].

In recent years, New Hope’s overseas strategy has shifted from “going global” to “integrating into local markets”, with a greater focus on

.

Instead of being limited to simple production capacity output, the company enhances its core competitiveness in local markets through a combination of technology export, management empowerment, and brand building [5]. In 2024, New Hope’s overseas business continued to maintain steady growth, with overseas revenue exceeding the RMB 20 billion mark and feed sales reaching 5.25 million tons, ranking top in market share in multiple markets [3].

Southeast Asia is the core region of New Hope’s overseas layout and an important fulcrum of the company’s internationalization strategy. Currently, New Hope has established a complete industrial chain layout in countries including

[4].

Country	Market Position	Core Business
Vietnam	Top 5 in the industry	Feed production, breeding services
Indonesia	Top 5 in the industry	Feed production, seedling business
Philippines	Top 5 in the industry	Feed production, animal health products
Cambodia	No. 1 in market share	Feed production (new project)
Laos	No. 1 in market share	Feed production, breeding services

In October 2025, New Hope announced an investment in a large-scale feed production facility in

, with a target annual production capacity of . This marks New Hope’s first entry into Cambodia’s feed and animal husbandry sector [6].

This project is expected to significantly enhance New Hope’s overall competitiveness in the Southeast Asian market and create a large number of local employment opportunities.

Africa is another important battlefield for New Hope’s overseas expansion. The company ranks first in market share in

, having established a complete industrial chain from feed production to breeding services [2].

With rapid population growth and accelerated urbanization in Africa, demand for animal protein continues to rise. However, the local feed industry has a low level of industrialization, resulting in a significant market supply gap, which provides broad development space for enterprises with technological and scale advantages such as New Hope [4].

New Hope has also deployed its business in South Asian countries such as

, and was selected into the white paper “Corporate Social Responsibility Report of Chinese Enterprises in Bangladesh” by the Ministry of Agriculture and Rural Affairs, winning honors such as “Outstanding Contribution Enterprise to China-Bangladesh Development” [2].

As of the end of 2024, New Hope has

, with annual feed production ranking among the top globally. In 2024, the company’s total feed sales reached , of which external sales were [3].

Feed sales in overseas markets reached

, continuing to maintain New Hope’s leading position among Chinese feed enterprises in overseas markets.

Business Segment	2024 Sales	Year-on-Year Growth
Total feed sales	25.96 million tons	-
External feed sales	21.21 million tons	-
Overseas feed sales	5.25 million tons	+10%+
Hog sales	16.52 million head	-
Hog slaughter	2.78 million head	-

New Hope has formulated an ambitious overseas production capacity expansion plan:

1. Short-Term Target (2025)
   : Overseas feed sales reach
   6 million tons
   [7]
2. Mid-Term Target (3-5 Years)
   : Add
   3-4 million tons
   of feed production capacity overseas through direct investment or mergers and acquisitions [4]
3. Cambodia Project
   : Invest in a new feed mill in 2025 with a target annual capacity of
   10 million tons
   [6]

These investments will be mainly distributed in emerging markets such as Southeast Asia, Africa, and Latin America to further consolidate New Hope’s leading position in the global feed industry.

At the end of 2023, New Hope disposed of its poultry industry and food deep processing segments, recapturing

(approximately USD 591 million) to supplement capital and focus on its core agricultural and livestock business [7]. This strategic adjustment provides sufficient financial support for the company’s international expansion.

New Hope’s overseas expansion strategy emphasizes “in-depth localization”, which is embodied in the following aspects:

: The proportion of localized raw material procurement overseas reaches , with 67% in Indonesia and 64% in Egypt [2].

Against the background of frequent fluctuations in global grain prices, a high proportion of local procurement effectively ensures the sustained growth of overseas performance and cost controllability.

: In overseas markets, the company not only sells products but also focuses on establishing local production bases, realizing the transformation from “product going global” to “production capacity going global”. This model helps reduce logistics costs, avoid trade barriers, and better serve local markets.

New Hope attaches great importance to the training of overseas talents and localized employment:

• As of the end of 2024, there are
  60 overseas branches
• Total number of overseas employees:
  8,053
• Local employment ratio reaches
  over 94%
  [2]
• Cooperate with local universities to form a virtuous cycle of talent training

Through a systematic training system, the company transfers China’s advanced agricultural technology and management experience overseas to enhance the professional capabilities and career development opportunities of local employees.

In the process of international development, New Hope has established strategic cooperative relationships with a number of internationally renowned enterprises and institutions:

• International Finance Corporation (IFC)
  : Investment support from international financial institutions
• Temasek
  : Strategic cooperation with Singapore’s state-owned investment company
• China Investment Corporation (CIC)
  : Investment cooperation with China’s sovereign wealth fund
• Cargill (US)
  : Technology and operational cooperation with a global agricultural giant
• Mitsui & Co. (Japan)
  : Market channel cooperation with a Japanese general trading company [2]

These cooperations not only provide financial support for New Hope but also bring advanced management experience, global market networks, and technological resources.

New Hope is the first Chinese agricultural and livestock listed company with overseas revenue exceeding RMB 20 billion, ranking second only to Charoen Pokphand Group and Cargill in the global feed industry [2]. The cost dilution effect brought by scale advantages enables New Hope to have strong price competitiveness in overseas markets.

The company continues to invest in research and development in the field of agricultural technology, accumulating rich experience in feed formulation, breeding technology, and disease prevention and control. In 2024, the production and management indicators of the company’s pig breeding business continued to improve:

• Weaning cost of piglets:
  RMB 263 per head
• PSY (number of weaned piglets per sow per year):
  25.1 head
• Survival rate in the fattening stage:
  93%
• Total cost:
  RMB 13.6 per kg
  [3]

These technological advantages enable New Hope to provide high-quality products and services in overseas markets.

New Hope has built a complete industrial chain from feed production to pig breeding and slaughter, with the capability of

. In overseas markets, the company not only sells feed products but also provides supporting seedling and animal health products, offering one-stop solutions for breeding customers [4].

New Hope’s brand enjoys a high reputation in China’s agricultural and livestock industry, and has gradually established a good brand image in overseas markets. The company’s “going global” case was selected into the “Analysis Report on China’s Agricultural Foreign Investment and Cooperation” by the Ministry of Agriculture and Rural Affairs, winning multiple international honors [2].

Competition in overseas expansion among China’s feed industry is becoming increasingly fierce, with major competitors including:

Enterprise	Key Overseas Layout	2024 Overseas Sales
New Hope	Southeast Asia, Africa	5.25 million tons
Haida Group	Southeast Asia, Africa, Latin America	2.36 million tons (+40%)
Yuehai Feed	Vietnam	Over 0.1 million tons

Haida Group recently announced that it will integrate its overseas feed, seedling, and animal health businesses into Haida International Holdings Limited and promote its listing on the main board of the Hong Kong Stock Exchange [4]. This capital operation indicates that Haida Group is accelerating its internationalization strategy, which may have a significant impact on the industry pattern.

In the global feed market, New Hope’s main competitors include:

• Charoen Pokphand (CP) Group
  : A Thai enterprise, one of the largest agricultural and livestock enterprises in Asia
• Cargill
  : A US enterprise, the world’s largest agricultural product trading and processing enterprise
• New Qingji Company (joint venture between New Hope Group and CP Group)
  : A major player in the Indonesian market
• JBS S.A. (Brazil)
  : The world’s largest meat processing enterprise

The main competitive barriers New Hope faces in the international market include:

1. Brand Awareness
   : Compared with international giants such as CP Group and Cargill, New Hope still has room to improve its brand awareness in some overseas markets
2. Localized Operation Capability
   : There are great differences in political, economic, and cultural environments among different countries, requiring continuous localization adaptation
3. Supply Chain Management
   : The expansion of overseas layout puts forward higher requirements for supply chain management
4. Policy Risks
   : Political instability and frequent policy changes in some regions increase investment uncertainty

The current global trade environment is undergoing profound changes, with the rise of trade protectionism and intensified geopolitical conflicts, bringing uncertainty to enterprises’ international operations [5]. When deploying overseas production capacity, New Hope needs to fully consider policy risks and implement diversified regional allocation.

Overseas businesses involve multiple currencies, and exchange rate fluctuations may affect the company’s profitability and asset value. The fluctuation of the RMB exchange rate in 2024 has already had an impact on some overseas businesses, so the company needs to strengthen exchange rate risk management.

There are great differences in business environment, cultural background, and legal systems among different countries, bringing many challenges to localized operations. KPMG research shows that Chinese enterprises going global need to implement a “global standards, local adaptation” strategy, hire local management talents, respect cultural differences, and enhance the capabilities of local employees through technical training [5].

As more and more Chinese enterprises “go global”, competition in markets such as Southeast Asia is becoming increasingly fierce. The “red ocean” trend in the industry may compress profit margins and affect the company’s profitability.

The risk of cross-border transmission of animal diseases such as African swine fever still exists, posing a threat to the company’s overseas breeding business. The company needs to continuously strengthen the construction of biosecurity systems.

Looking forward, New Hope’s overseas expansion strategy will focus on the following directions:

1. Deepen Existing Markets
   : Consolidate the leading position in core markets such as Vietnam, Indonesia, and the Philippines, and increase market share
2. Expand Emerging Markets
   : Increase investment in markets such as Cambodia, Laos, and Africa to seek new growth points
3. Enhance Localization Level
   : Further deepen the full-chain localization of local procurement, local production, and local sales
4. Strengthen Technology Export
   : Export China’s agricultural technology and digital management experience to overseas markets

According to the company’s plan, overseas production capacity expansion will be achieved through the following methods in the next 3-5 years:

• Greenfield Investment
  : Build new feed mills and breeding bases in key markets
• Mergers and Acquisitions Integration
  : Acquire high-quality local feed enterprises to quickly gain market share
• Strategic Cooperation
  : Establish joint ventures with local enterprises to achieve resource complementarity

According to the company’s 2024 annual performance express report, the target for overseas feed sales in 2025 is

[3]. Combined with the commissioning of new projects such as the Cambodia project, this target is expected to be achieved.

In the long term, New Hope is committed to becoming a

, achieving a scale and influence in overseas markets comparable to that in the Chinese market. According to the strategic plan disclosed on the company’s official website, New Hope will continue to focus on three regions: Asia (excluding East Asia), Africa, and Latin America, to build a globally competitive agricultural industrial chain [4].

As a pioneer in the internationalization of China’s agricultural and livestock enterprises, after 25 years of in-depth layout, New Hope has built an overseas business network covering 36 countries, becoming the first Chinese agricultural and livestock listed company with overseas revenue exceeding RMB 20 billion.

The company’s overseas expansion strategy has the following characteristics:

1. Obvious First-Mover Advantage
   : Started layout in Vietnam in 1999, being one of the first enterprises in the industry to “go global”
2. Balanced Regional Layout
   : Covers multiple high-growth markets such as Southeast Asia, Africa, and South Asia
3. High Level of Localization
   : Local employment ratio reaches 94%, and local procurement accounts for over 25%
4. Clear Production Capacity Plan
   : Plans to add 3-4 million tons of production capacity in the next 3-5 years
5. Outstanding Technological Advantages
   : Has leading advantages in feed formulation, breeding technology, etc.

However, the company also faces challenges such as geopolitical risks, exchange rate fluctuations, and intensified market competition. In the future, New Hope needs to continue to deepen localized operations, strengthen risk management and control, and continuously enhance its competitiveness in the global market to achieve its strategic goal of becoming a global leader in the agricultural and food industry.

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[0] Announcement of New Hope Liuhe Co., Ltd. (http://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?stockid=000876&id=10844665)

[2] New Hope Group Official Website - Business Overview (http://www.newhopegroup.com/business-55.html)

[3] 2024 Annual Performance Express of New Hope Liuhe (https://pdf.dfcfw.com/pdf/H2_AN202504021650406698_1.pdf)

[4] Beijing Business Daily - Haida Group Plans to List in Hong Kong, Overseas Becomes New Arena for Feed Giants (https://xinwen.bjd.com.cn/content/s68f73511e4b0221b9bee7bad.html)

[5] KPMG - Chinese Outward Greenfield Investment: From “Going Global” to “Integrating In” (https://assets.kpmg.com/content/dam/kpmg/cn/pdf/zh/2025/09/chinese-outward-greenfield-investment.pdf)

[6] Khmer Times - Chinese Agribusiness Giant Plans Animal Feed Plant in Cambodia (https://www.kampucheathmey.com/kpt-english/1009769)

[7] PESTEL Analysis - What is New Hope Liuhe’s Growth Strategy? (https://pestel-analysis.com/blogs/growth-strategy/nhlh)