SOURCE: AgFeed Industries, Inc.

January 07, 2008 08:00 ET

AgFeed Industries Receives Chinese Government Grant

Company's Lushan Breeder Hog Farm Designated a "National Breeder Hog Center"; AgFeed Continues to Benefit From China's Hog Shortage With the Strategic Acquisition of the Lushan Breeder Hog Farm

NEW YORK, NY--(Marketwire - January 7, 2008) - AgFeed Industries, Inc. (NASDAQ: FEED) (website: www.agfeedinc.com), a market leader in China's premix animal nutrition industry, today announced that the Company's Lushan Breeder Hog Farm was designated a "National Breeder Hog Center" by the Chinese government. AgFeed will receive RMB 300,000 in an annual grant from the government in recognition of its outstanding breeder hog products. There are a total of 46 nationally designated breeder hog centers in China as part of the government's "National Breeder Hog Testing Labs" project which promotes better quality hogs to address the country's severe hog shortage. Pork represents about 65% of China's annual meat consumption.

Songyan Li, Ph.D., AgFeed's Chairman, commented: "AgFeed completed the acquisition of the Lushan breeder hog farm in November 2007 in anticipation of an annual production of approximately 20,000 hogs as well as the farm's superb breeder hog quality. Management's vision towards the successful Lushan acquisition is now also recognized by the government authority. Over 530 million hogs are raised in China each year compared to approximately 100 million hogs in the US. The government supports the growth in the number of these animals and increased incomes for farmers. The supply side of pork is highly fragmented and pricing is totally market driven. Any increase in feed raw material costs is immediately passed along to consumers' cost of pork. We believe the government will implement favorable policies towards more efficient hog production from which a breeder hog farm like ours stands to benefit."

Dr. Li continued: "AgFeed will implement an organic growth plus acquisitions strategy in 2008. As wealthier consumers demand more and better quality of meats, we believe China's hog prices will remain high in the foreseeable future. AgFeed is well positioned to benefit from such extraordinary growth opportunities as we supply both animal feed and hogs."

About AgFeed Industries, Inc.

AgFeed is a U.S. public company listed on the NASDAQ Global Market. Through its operating subsidiaries in China, AgFeed is a market leader in China's fast-growing premix animal nutrition industry. AgFeed has also entered into China's hog raising industry in 2007. The premix market in which Agfeed operates is an approximately $1.6 billion segment of China's animal feed market, an industry which generated approximately $40 billion in 2006, according to the China Feed Industry Association.

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 our 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. We are under no duty to update any of the forward-looking statements to conform such statements to actual results or events and do not intend to do so.

Contact Information

  • Contact:

    Investor Relations:
    The Global Consulting Group
    Mr. Dixon Chen / Kevin Theiss
    Tel: 646-284-9409
    Email: ktheiss@hfgcg.com

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