November 8, 2007
AgFeed Industries acquires biggest hog breeder farm in China's Jiangxi Province
AgFeed Industries, Inc. a leader in China's premix animal nutrition industry, said it has completed the acquisition of Jiangxi Lushan Breeder Pig Farm Ltd., the largest breeder hog farm in China's agriculture focused Jiangxi province. The buyout cost US$3.3 million for 90 percent of the pig farm.
Songyan Li, PhD, AgFeed's Chairman said the acquisition is "part of our strategic plan for 2008 as we enter into the hog raising business in China. AgFeed plans to grow its business in 2008 and beyond through both organic growth and acquisitions in two segments: animal premix feed and hog raising businesses. These two industries reflect a natural vertical integration of our overall business. AgFeed intends to take advantage of pricing and other synergies between our feed and hog farm businesses."
Junhong Xiong, CEO of AgFeed, said the company is "comfortable with our previous guidance on revenue and net income for 2007 as a result of our sales and marketing of premix feed products." He expects earnings growth to continue into 2008 with the addition of the hog farm business as well as broader market expansion of its feed business.
AgFeed Industries is an American company with main operations in China. AgFeed is a public company listed on the NASDAQ Global Market in the United States. Through its operating subsidiaries in China, AgFeed is one of the world's leading manufacturer, marketer and distributor of premix animal nutrition products targeting China's growing animal feed market. China's animal feed market was approximately US$40 billion in 2006 according to China Feed Industry Association.