May 30, 2008

AgFeed acquires two additional hog farms, expects strong Q2 hog sales

Press Release
 
 

AgFeed Industries, Inc. has announced the acquisition of two producing commercial hog farms in China's Fujian province, including a breeding hog farm, the company's second such farm.

AgFeed acquired 100 percent ownership of these farms. AgFeed's management is already in place operating the newly acquired hog farms.

With the addition of these newly acquired hog farms, AgFeed now owns controlling interest (on average more than 90 percent) in 24 producing commercial hog farms in several provinces in China, including two breeder hog farms, with an aggregate annual hog production capacity of approximately 550,000 hogs. AgFeed expects these acquisitions to be immediately accretive to 2008 earnings.

AgFeed anticipates strong hog sales through the remainder of 2008. AgFeed plans to acquire additional producing commercial hog farms as several new opportunities have been identified.

AgFeed's hog farms are strategically located in the Jiangxi Province, Fujian Province, Guangdong Province, Guangxi Province and the Shanghai area. The company has existing feed manufacturing facilities in these regions as well as management staff in place to run any newly acquired farms.