AgFeed Industries Inc. has announced the acquisition of a producing commercial hog farm serving China's Shanghai region.
AgFeed acquired 100 percent ownership of the farm. As a result of this acquisition, AgFeed is positioned as the largest commercial hog producer in the Shanghai region.
Shanghai represents one of the wealthiest consumer markets and one of the highest hog prices in China. AgFeed expects the acquisition to be immediately accretive to 2008 earnings.
AgFeed now has a controlling interest in 25 producing commercial hog farms strategically located in the South-eastern region of China, providing close access to end user consumers, including two of China's wealthiest regions where hog prices are also the highest in China: Shanghai and Guangdong Provinces. Due to the Chinese cultural preference and consumer insistence on daily slaughtered fresh, not chilled or frozen pork, close access to consumer markets is a key to efficient and profitable hog production in China.