January 8, 2008
AgFeed's pig breeder farm receives government recognition
AgFeed Industries, a premix producer with production based in China, announced its Lushan Breeder Hog Farm being designated a "National Breeder Hog Center" by the Chinese government.
In recognition of its breeder hog products. AgFeed will receive a RMB 300,000 grant from the government.
The centre now joins the 46 nationally designated breeder hog centers in China as part of the government's "National Breeder Hog Testing Labs", projects which promotes better quality hogs.
The farm, with annual production of 20,000 pigs, was acquired by AgFeed in November 2007.
Li Songyan, Ph.D., AgFeed's Chairman, expressed his belief that the government would enact favorable policies towards more efficient hog production from which farms like AgFeed would benefit.
He added that AgFeed will implement an organic growth and acquisitions strategy in 2008.
Pork makes up more than half the typical Chinese meat diet. China produces five times as much pork as the US.
The company expects to benefit from growth opportunities provided by China's burgeoning meat demand as it supplies both feed and meat.
AgFeed entered China's hog raising industry in 2007.
The premix market in which Agfeed operates is an approximately US$1.6 billion segment of China's animal feed market, according to figures from the China Feed Industry Association.