March 25, 2008
AgFeed seeking strategic options for access to China's feed and hog markets
AgFeed Industries Inc. has engaged Spectrum Agribusiness to advise the company in pursuing opportunities with selected global agricultural companies to provide entrance into the Chinese market.
Founded 13 years ago, AgFeed has two integrated profitable business lines in China: premix animal feed and hog production. AgFeed is currently the largest premix feed company in China in terms of revenues and intends to expand its hog production through multiple acquisitions in 2008.
"China represents tremendous opportunities for global companies in the feed and hog production industries. Developing the right relationships to access the Chinese markets is key and AgFeed with its footprint and private sector ownership structure represents a unique opportunity. With a solid management team already in place, its transparency and accountability as a NASDAQ company, AgFeed provides an ideal shortcut for companies that are considering entry into China," said Dennis Harms, CEO of Spectrum Agribusiness.
AgFeed intends to pursue strategic discussions with various global companies that have expressed an interest in entering China, and the engagement of Spectrum Agribusiness will help the company to explore the best strategic fit, according to Songyan Li, chairman of AgFeed.
"We trust and rely on our advisors. While we continue to focus on achieving or exceeding our plans, AgFeed intends to explore all possibilities that would enhance our shareholders value," said Li.
Spectrum Agribusiness provides strategic guidance to leaders in the food and agriculture industries globally, providing advises on industry repositioning strategies and the execution of successful acquisitions. The company also engages in operational and organisation reviews along with temporary CEO/CFO assignments.
NASDAG-listed AgFeed Industries is a market leader in China's fast growing pre-mix animal feed and hog raising industries. The pre-mix market in which AgFeed operates is an approximately $1.6 billion segment of China's $40 billion per year animal feed market, according to the China Feed Industry Association.