January 24, 2008
Agfeed expands with 510th store
AgFeed Industries Inc. announced the opening of its 510th production distribution chain in China on strong customer demand from its sales channels.
Songyan Li, AgFeed's chairman, said they expect 120,000 hog sales in 2008. At the current market price of around US$220 per hog, AgFeed is experiencing strong sales in both the feed and hog businesses.
Songyan added the company aims to achieve significant growth in both segments as to acquire more hog farms as well as broadening feed distribution channels across China.
The company had 503 retail chain stores at the end of 2007 and has been operating for 13 years.
Last year, the company has developed a retail product sales channel of distributing AgFeed products through independently owned stores across China. These stores exclusively market AgFeed premix products to end users including small-and-medium-sized hog farms and individual hog farmers.
Officials believe that the unique retail distribution model not only deepens market penetration, but also establishes long-term brand loyalty among hog farmers.
According to the China Feed Industry Association, over 530 million hogs are raised in China each year compared to approximately 100 million in the US.
AgFeed is a US public company listed on the NASDAQ Global Market. Through its operating subsidiaries in China, AgFeed is a market leader in China's fast growing premix animal nutrition industry.
It has also entered into China's hog raising industry since 2007 through multiple acquisitions.