July 20, 2009

AgFeed Industries, an independent hog production and animal nutrient company in China has formed a joint venture with M2P2, a US hog production and industry management consulting company.

The new company, AgFeed International Protein Technology Corp. will focus on enhancing hog production systems for Chinese and other Pan Asian clients based on modern western standards to increase productivity and ensure the highest bio-security health standards in the Pan Asian hog industry.

The joint venture was formed to take advantage of the coming commercialisation and consolidation of the hog industry being fostered by the Chinese central and local governments.

The joint venture commenced operations on July 13, 2009 and AgFeed Industries is the joint venture's first client.

M2P2 chief executive officer Glenn McClelland has been appointed to serve as the president of AgFeed International Protein Technology. The new company will be owned 80.1 percent by AgFeed Industries and certain affiliates and 19.9 percent by M2P2.

In describing the joint venture's initial plans, AgFeed Industries' chief operating officer Gerard Daignault stated that the joint venture will advise AgFeed Industries in building two initial beta-sites on two 600 plus acre sites, one in Gao'an City, Jiangxi Province, China, 50 miles southwest of Nanchang, and the other in Dahua City, Guangxi Province in southern China.

At both locations, AgFeed Industries will build 5,000 head sow farms designed as pristine modern facilities with a combined output of 225,000 to 250,000 animals annually.