June 6, 2007
AgFeed launches 120th premix franchise store in China
Premix feed producer AgFeed Industries has launched its 120th franchise chain store in China.
The US-listed company has developed over 600 nationwide wholesalers targeting commercial hog farms and over 120 franchise chain stores targeting individual farmers.
Songyan Li, chairman of AgFeed Industries said the company's franchise model has achieved significant success since its inception in January 2007.
Li said the company would continue to deepen market penetration by adding new distribution outlets this year.
High pork prices currently and growing demand has enabled the company to achieve strong sales across all product lines, he said.
John Egan, Jr., an AgFeed independent director said there are many opportunities for acquisitions in the vast and highly fragmented animal nutritional feed market in China.
In fact, AgFeed is currently in negotiations to acquire three additional feed businesses, which it expects to finalise in the coming months.
AgFeed Industries is the first China-based animal nutritional product company publicly traded in the US.