Hanfeng Evergreen Inc.
TSX : HF

Hanfeng Evergreen Inc.

March 04, 2010 17:00 ET

Hanfeng Comments on New Government Agriculture Initiatives

TORONTO, ONTARIO--(Marketwire - March 4, 2010) - Hanfeng Evergreen Inc. ("Hanfeng" or the "Company") (TSX:HF), a leading producer of slow and controlled release fertilizers in China, commented today on China's Ministry of Agriculture (MOA) recently announced Soil-Survey Based Fertilization initiative. The extensive initiative is part of China's continuing effort to promote more modern farming practices in order to increase crop yields and reduce environmental damage caused by conventional fertilizers. According to published reports, the initiative announced in late February provides for 100,000 experts and agronomists to be placed "in the field" to provide training and support to an estimated 160 million farmers in China. Specifically, these experts and agronomists will be tasked to provide extensive instruction and expand the practice of soil-survey based fertilization on up to 400 million mu (approximately 66 million acres) of privately leased farm land, expanding up to 1.1 billion mu (approximately 180 million acres), or approximately 60 percent of China's arable farm land. The stated goal of the MOA initiative is to increase the application scale of formulated fertilizer, establish demonstration fields for the high yield grain, cotton, oil and sugar fields, popularize the soil-survey based fertilization technology, and increase the proportion of formulated fertilizer to total fertilizers.

Soil-survey, or soil testing refers to the analysis of soil to determine nutrient requirements and deficiencies for specific crops. While it is a common practice in North America, it is not widely used in China. Utilizing the testing data, fertilizers can be formulated to provide the appropriate amounts of nutrients like nitrogen, phosphate, potash and medium/micronutrients like sulfur, as well as controlling the timing of release to optimize the crops growing conditions, producing higher yields, as well as eliminating over fertilization and chemical run off. In a recently released study by the Chinese government, 2007 test data found that agriculture was responsible for 43.7 percent of China's chemical oxygen demand, which is the main measure of organic compounds in water, 67 percent of the phosphorus discharges, and 57 percent of the nitrogen discharges.

"We applaud the efforts by the MOA to bring more modern farming techniques to China's agriculture sector, and see this initiative as not only a significant step forward in the industry, but also as a great opportunity to further promote the benefits of slow and controlled release single and compound nutrient fertilizers," stated Xinduo Yu, president and CEO of Hanfeng. "At Hanfeng, we employ over 200 agronomists that focus on supporting our distributors and their customers through soil survey, field-testing, and education. We custom design our slow release products to provide the required nutrient levels for specific crops in specific regions. The custom formulation, combined with our leading slow release technology, is proven to increase yields and reduce environmental damage caused by conventional fertilizers."

Hanfeng has been working in partnership with the MOA since 2009 conducting field trials focused on soil-survey and the use of Hanfeng's sulfur coated urea and sulfur coated compound fertilizers in six provinces including Liaoning, Henan, Guangxi, Yunnan, Shandong and Shannxi. (See news release dated November 20, 2008). The adaptive trials are based on specific soil conditions and will study the response of sulfur and slow release fertilization on yield and crop quality as well as acquaint farmers with the most scientific and efficient SCU and SCF applications. The trials address many of the same concerns identified by the recently announced broader initiative, including issues related to conventional fertilizers, such as over fertilization, decreasing soil fertility, and environmental problems, including groundwater pollution and greenhouse gas (carbon dioxide, nitrous oxide, etc.) emission.

About Hanfeng Evergreen Inc.

Hanfeng is the largest producer of slow and controlled release fertilizers in China. It was the first company to introduce the concept of slow and controlled release fertilizers into China's agriculture market with its establishment of the first commercial scale production in China. All production facilities are located in prime agricultural regions of China. The Company is headquartered in Toronto, Ontario and its shares trade on the Toronto Stock Exchange. www.hanfengevergreen.com

This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Hanfeng's business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. All amounts are stated in Canadian dollars except for noted otherwise.

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