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AgFeed Industries Receives Chinese Government Grant
US - AgFeed Industries' Lushan Breeder Hog Farm was designated a "National Breeder Hog Center" by the Chinese government.* "Management's vision towards the successful Lushan acquisition is now also recognized by the government authority." |
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Songyan Li, Ph.D., AgFeed's Chairman
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AgFeed, (www.agfeedinc.com), a market leader in China's premix animal nutrition industry, will receive RMB 300,000 in an annual grant from the government in recognition of its outstanding breeder hog products.
There are a total of 46 nationally designated breeder hog centers in China as part of the government's "National Breeder Hog Testing Labs" project which promotes better quality hogs to address the country's severe hog shortage. Pork represents about 65% of China's annual meat consumption.
Songyan Li, Ph.D., AgFeed's Chairman, said: "AgFeed completed the acquisition of the Lushan breeder hog farm in November 2007 in anticipation of an annual production of approximately 20,000 hogs as well as the farm's superb breeder hog quality.
"Management's vision towards the successful Lushan acquisition is now also recognized by the government authority. Over 530 million hogs are raised in China each year compared to approximately 100 million hogs in the US.
"The government supports the growth in the number of these animals and increased incomes for farmers. The supply side of pork is highly fragmented and pricing is totally market driven. Any increase in feed raw material costs is immediately passed along to consumers' cost of pork. We believe the government will implement favorable policies towards more efficient hog production from which a breeder hog farm like ours stands to benefit."
Dr. Li continued: "AgFeed will implement an organic growth plus acquisitions strategy in 2008. As wealthier consumers demand more and better quality of meats, we believe China's hog prices will remain high in the foreseeable future. AgFeed is well positioned to benefit from such extraordinary growth opportunities as we supply both animal feed and hogs."
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