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AgFeed Reports Strong Growth in Pig, Feed Sectors

by 5m Editor
13 May 2010, at 10:12am

CHINA - In its first quarter 2010 results, AgFeed Industries, Inc. reports revenue of US$53 million, which is 58 per cent more than the same quarter last year. Pig production increased by 24 per cent amd animal feed output more than doubled.

AgFeed Industries, Inc., one of the largest independent hog production and animal nutrient companies in China, today announced its results for the first quarter of 2010. Revenue for the first quarter reached $52.9 million an increase of 58 per cent compared to the first quarter of 2009. Production volumes increased by 24 per cent in the Company's hog division and 119 per cent in the animal nutrition division, as compared to the same period in 2009

AgFeed's Chairman, Dr Songyan Li, commented: "In spite of falling hog prices and a softness in orders for hog feed our company's divisions continued to show their resiliency and wherewithal in dealing with our large customer base. I expect hog prices will begin to appreciate over the next 90 days and will lead to hog prices being 12 to 15 per cent higher in the second half of the year.

"Our 'AgFeed, Government & Farmer' strategy is taking hold as evidenced by our Dahua City and Xinyu City local government hog farm projects, featuring a true partnership to introduce western hog production technologies for the health and benefit of the Chinese consumer. These projects, when completed, will be able to produce over 800,000 top line hogs every year. I believe that we will benefit from our ongoing investments in our customers and businesses.

"We recently listed our stock on Europe's Alternext, an affiliate of the NYSE, as part of our ongoing effort to continually expand our base of shareholders, which today stands at over 22,000 shareholders of record. On May 18th, I will be part of AgFeed's team presenting at Rodman & Renshaw's investor conference in London."

Junhong Xiong, AgFeed's President, said: "We are pleased with the results we achieved in a challenging operating environment. During the quarter, the average hog price was 11 per cent lower than the first quarter of last year. Many of our customers are struggling to withstand the combined challenge of low hog prices and increased feed prices due to the high cost of corn.

"In order to support our animal nutrition customers and cement our market position, AgFeed has chosen to exploit its relative financial strength by extending payment terms to its customers. Facing similar pressures in our Hog Division, we were able to sell hogs at relatively advantageous prices by accepting payment terms from certain long-standing and credit worthy customers."