People's Food Holdings Limited purchases pigs and chickens from local farmers near their various meat processing plants in China. The pigs and chickens are processed into fresh, frozen or processed meat products. Final products will have varying lifespans under different storage conditions. Some products are shipped to final customers, such as grocery stores, through a large national distribution system, whilst others are sold directly to end consumers through retail stores.
High-temperature meat products are cooked at approximately 121ˇăC and 2.5 atmospheric pressure. These meat products can be stored at room temperature and have a shelf life of about six months from the date of production. People's Food indicated a shelf life of only 120 days, as consumers prefer to purchase products well before their expiration date.
High-temperature meat products are generally priced lower than
Low-temperature meat products and do not require refrigeration. They are affordable and accessible to a wide range of Chinese consumers. People's Food has also introduced various processed meat products to cater to specific consumer groups in China. For example, the spicy sausages cater to the taste of customers in Sichuan province. We also produce chicken and beef sausages at the Tong Liao facility to meet the consumer tastes in Northern China.
Low-temperature meat products are cooked at lower temperatures ranging from 65-85ˇăC, under 1 atmospheric pressure. These meats have a shelf life of up to three months from the date of production if stored at 0ˇăC.
People's Food introduced low-temperature meat product, the pork ham, in November 1999. In-house R&D studies have shown that these meats cooked at lower temperatures taste better than meats cooked at high temperature and pressure. The milder treatment tends to preserve the flavour and nutrients. These products command higher prices and cater to the taste of consumers in the city who have higher spending power.
Frozen Pork Products
People's Food produces frozen pork at all of our production facilities except Xiangtan for both use in our own products and for sale throughout China. Pork meat is cut into various parts before it is placed in the freezer rooms with constant temperature of -33ˇăC for 15 hours. The meat temperature reaches -18ˇăC, where it is maintained to allow a shelf life of about six months. Frozen pork is mainly sold to processed food manufacturers as their primary ingredient for sausages and luncheon meats. These customers include Maling, Haifa, Taihe, Songfa and Lianfa
Chilled Fresh Pork
People's Food believes Chinese consumers generally perceive fresh meat retains better flavour than frozen meat, which is why Chilled Fresh Pork commands a
premium in the market. The main suppliers of fresh pork in China today remain the local
in each province.
The key difference between the fresh pork of People's Food and that from the local
is the modern packing and sanitizing capabilities that allow better hygienic standards to be achieved. Thus, People's Food customers are more assured the pork is safe for consumption.
To assure the pork meat is fresh, pigs are slaughtered and processed within 30 minutes, then stored in freezers for 20 hours to reduce the meat temperature to about 0ˇăC. These airtight freezers are filled with ozone, which acts as a sterilizing agent, killing germs (bacteria) in the meat. Chilled Fresh Pork kept at 0ˇăC has a shelf life of about two weeks.
The Chilled Fresh Pork is cut into various parts in a sterilized clean-room facility for packaging & delivery. The packing room is also kept at 0ˇăC, in an airtight environment to minimize contamination. Today, People's Food produces Chilled Fresh Pork
in the plants at Linyi, Dezhou, Daqing, and Tongliao, and plans to produce Chilled Fresh Pork in the Jiutai plant in the first quarter of 2006.
Pig by-products include all the parts of the pig left over after production of fresh and frozen pork. These parts include pig innards, pigskin, pig tails, lard and pig heads. Edible by-products, such as pig stomach and heart are sold to suppliers of fresh markets while other by-products are sold for industrial use. Pig by-products are sold to approximately 1,400 merchants in China.The pig by-products are:
- Blood: Protein source in animal feed, also for fabric printing & dyeing
- Brains: Medicine production
- Skin: Leather for garments and shoes
- Bones: Calcium-rich animal feed
- Hair: Artists brushes
People's Food also produces frozen chicken, which is sold to processed food producers as their main ingredient for luncheon meats and sausages, as well as to restaurants, supermarkets and fresh food markets. We also utilise frozen chicken breast meat in some of our own processed products.Frozen chicken is processed in a similar manner to pork, except the meat is chilled before freezing. After chilling the meat, it is cut into various parts before freezing them.