March 18, 2008
AgFeed receives direct hog export license to Hong Kong
AgFeed Industries has announced that the Chinese ministry of commerce has granted its Wannian Xiandai pig farm a direct export license to export pigs to Hong Kong.
The export license allows AgFeed to directly supply pigs to Hong Kong, one of China's most prominent cities.
Hong Kong has high quarantine standards during pig production process and it also pays high prices for pigs that have met strict quality requirements.
Pig prices have reached a record high due to pig shortage in China and AgFeed currently receive about $250 per pig, 13 percent higher than the company's original estimation of $221 per pig.
AgFeed has observed that corn prices have remained stable despite rising pig prices. China's pig rearing industry is an income tax exempt business.
HKD 1 = US$0.12 (March 18, 2008)