SOURCE: AgFeed Industries, Inc.

April 24, 2008 06:05 ET

AgFeed Industries Announces Opening of the 700th Independently Owned Exclusive Feed Distribution Chain Store in China

NEW YORK, NY--(Marketwire - April 24, 2008) - AgFeed Industries, Inc. (NASDAQ: FEED), a leader in China's premix feed and hog raising industry, today announced the opening of the 700th independently owned feed product distribution retail chain store in China exclusively distributing AgFeed branded premix products to end users including small and medium-sized hog farms and individual hog farmers.

Approximately 75% of China's more than 600 million annual hog production is supplied by individual backyard farmers. In addition to retail chain store feed sales, AgFeed distributes premix feed directly to over 600 large commercial hog farms across China.

AgFeed has two profitable business lines that provide synergistic benefits to the Company: premix animal feed and hog production.

Dr. Songyan Li, AgFeed's Chairman, commented: "Our rapidly expanding distribution outlets and favorable hog prices in China continue to contribute to our growth. AgFeed's unique and highly successful retail distribution model through independently owned exclusive AgFeed distribution chain stores provides strong strategic enterprise value for us. We remain optimistic regarding our ability to achieve our 2008 targets for both hog and feed production."

About AgFeed Industries, Inc.

Through its China-based operating subsidiaries, NASDAQ-listed AgFeed Industries (www.agfeedinc.com) 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. There are approximately 600 million hogs raised in China each year, compared to approximately 100 million in the U.S.

Safe Harbor Statement

All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. AgFeed's actual results may differ from its projections. Further, preliminary results are subject to normal year-end adjustments. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect AgFeed's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in AgFeed's filings with the Securities and Exchange Commission.

Contact Information

  • Contact Information:

    U.S. Contact:
    Mr. Arnold Staloff
    Independent Board Member
    AgFeed Industries, Inc.
    Tel: 212-631-3510

    Corporate Contact:
    Mr. Sam Zhou
    Corporate Development
    AgFeed Industries, Inc.
    Tel: 011-86-13925912908
    Email: info@agfeedinc.com