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There are approximately eight major broiler suppliers and many other smaller suppliers in China with no discernable market leaders. As a heavily agricultural province, Shandong is one of the largest producers of broilers in China. Due to the difficulties with transporting live animals,Yuhe's customers are primarily located in Shandong, accounting for 85% of the Company's sales, as well as neighboring Heilongjiang, Jilin and Liaoning provinces. With 2%of current market share, Yuhe expects to continue its rapid pace of growth to become the number one supplier by volume in the near future. |