AgFeed Q1 revenues surge 58%

AgFeed Industries, Inc., one of the largest independent hog production and animal nutrient companies in China, announced its results for the first quarter of 2010, with revenues showing an increase of 58%.

Revenue for the first quarter reached US$52.9 million an increase of 58% compared to the first quarter of 2009. Production volumes increased by 24% in the company's hog division and 119% in the animal nutrition division, as compared to the same period in 2009.

Dr. Songyan Li AgFeed's chairman expects hog prices will begin to appreciate over the next 90 days and will lead to hog prices being 12-15% higher in the second half of the year.

Li noted that the 'AgFeed, Government & Farmer' strategy is taking hold as evidenced by Dahua City and Xinyu City local government hog farm projects, featuring a true partnership to introduce western hog production technologies for the health and benefit of the Chinese consumer. These projects, when completed, will be able to produce over 800,000 top line hogs every year.

AgFeed was recently listed on Europe's Alternext, an affiliate of the NYSE, as part of the company's ongoing effort to continually expand their base of shareholders, which currently stands at over 22,000 shareholders of record.

AgFeed president Junhong Xiong observed that during the quarter, the average hog price was 11% less than the first quarter of last year, noting the combined challenge of low hog prices and increased feed prices due to the high cost of corn.