AgFeed Industries, Inc.(FEED.NSDQ)
Profile
WebSite:
http://www.agfeedinc.com
AgFeed Industries, Inc. (AgFeed) is engaged in the animal nutrition and commercial hog producing businesses in the People's Republic of China through its indirect operating subsidiaries. It operates in four segments: animal feed nutrition, hog production-United States, hog production-China and western style hog farms in China. The Company鈥檚 animal nutrition business consists of the research and development, manufacture, marketing and sale of additive premix (premix), concentrates and complete feed for use in the domestic animal husbandry markets, primarily for hog production in China. The Company operates five premix feed manufacturing facilities located in the cities of Jiangxi, Guangxi, Shandong and Hainan and the municipality of Shanghai. It mainly produces hogs for slaughter and sells breeding stock. In September 2010, the Company acquired M2P2 LLC, a joint venture partner with AgFeed in AgFeed International Protein Technology Corp.
Reports
AgFeed Industries, Inc. is an international agri-business with operations in the United State and China. In the United States our hog production system sets new standards in production efficiency and productivity. We are using this expertise to lead the modernization and integration of the Chinese hog production industry. Founded in 1995 with a focus on animal nutrition today AgFeed is made up of three distinct operating units, Animal Nutrition, Hog Production and Harvesting.
Our operating strategy is based on exporting our techniques, technologies and expertise to address certain core Chinese market dynamics. Pork is a staple of the Chinese diet and is the primary source of the protein consumed in China. The duel imperatives of government regulation assuring food safety and the security of the food chain together with growing consumer demand for reliably safe food are driving consolidation and market growth. The growing urbanization of China acts as a further force of consolidation as industrial scale market participants are required in order to efficiently and effectively serve a much more concentrated distribution system.
Our animal nutrition business serves hog producers throughout southeastern China through 5 feed mills where we produce additive premix, concentrates and complete feed. We have exclusive distribution arrangements with nearly 1,400 independently owned retail stores and serve over 780 commercial farms.
We have received “Green Certification” from the Ministry of Agriculture of the People’s Republic of China for our premix products under the brand label “BEST”. This “Green Certification” has laid the foundation for our hog farms to supply hogs for “green” pork products.
In the United States we produce approximately 1.3 million market hogs annually through our system of breeding facilities in Colorado, Oklahoma and North Carolina and contract finishing facilities in Iowa.
AgFeed’s Chinese based hog production business consists of 31 existing farms and two production pods of 7 western style (technologically advanced) farms that are currently under development. Our hog production is characterized by the transformation of our existing 31 farms with the most effective, efficient and safe modern western standards, while our new production pods have been designed with full consideration for importing and employing western technologies, methods, genetics and techniques.
Our Harvesting (slaughter, processing & marketing) business unit was established in 2010 and represents that next step in AgFeed’s efforts to deploy a fully integrated hog production system in China. Our system will range from the manufacture of the highest quality, safe nutrition products for the hog industry, to the most modern and efficient breeding operations to highly efficient state of the art processing facilities.