SOURCE: AgFeed Industries, Inc.

March 24, 2008 11:06 ET

AgFeed Industries Engages Leading US Hog Industry Experts to Explore Strategic Options as a Platform for Access to China's Vast Feed and Hog Raising Markets

NEW YORK, NY--(Marketwire - March 24, 2008) - AgFeed Industries, Inc. (NASDAQ: FEED), a leader in China's premix feed and hog raising industry, announced today that the Company has engaged a leading US agricultural expert, Spectrum Agribusiness, led by senior industry executives Dennis Harms and Gerry Daignault, to advise AgFeed in pursuing opportunities with selected global agricultural companies to provide them with entry into the China market.

Founded 13 years ago by founders/managers, AgFeed has two integrated profitable business lines in China: premix animal feed and hog production. AgFeed is currently the largest premix feed company in China in terms of revenues and intends to expand its hog production through multiple acquisitions in 2008.

Dennis Harms, CEO of Spectrum Agribusiness, commented: "China represents tremendous opportunities for global companies in the feed and hog production industries. Developing the right relationships to access the Chinese markets is key and AgFeed with its foot print and private sector ownership structure represents a unique opportunity. With a solid management team already in place, its transparency and accountability as a NASDAQ company, AgFeed provides an ideal shortcut for companies that are considering entry into China."

Songyan Li, Ph.D., AgFeed's Chairman, said: "AgFeed intends to pursue strategic discussions with various global companies that have expressed an interest in entering China. The engagement of Spectrum Agribusiness will help us explore the best strategic fit. We trust and rely on our advisors. While we continue to focus on achieving or exceeding our plans, AgFeed intends to explore all possibilities that would enhance our shareholders value."

About Spectrum Agribusiness and its Founders Dennis W. Harms and Gerry Daignault

Spectrum Agribusiness provides strategic guidance to leaders in the food and agriculture industries globally, advising corporate boards and CEOs with industry repositioning strategies and the execution of successful acquisitions. The Company also engages in operational and organization reviews along with temporary CEO/CFO assignments. Founded by former industry executives Dennis Harms and Gerry Daignault, the firm has more than 50 years of experience in agribusiness. After working for 15 years in a variety of positions with Cargill and Central Soya, Mr. Harms founded Premium Standard Farms ("PSF"). He led the company as CEO for ten years and grew from startup to $450 million in revenue with more than 2,600 employees. PSF is recognized as one of the premiere pork production companies worldwide and was acquired in 2006 by US hog industry leader Smithfield Foods (NYSE: SFD) for approximately $800 million. Mr. Daignault has 26+ years of experience in financial and managerial positions including 18 years at the CFO level for domestic and international agribusiness. (www.spectrumagribusiness.com)

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:

    Spectrum Agribusiness Contact:
    Gerard Daignault
    Tel: 615-264-0097
    Email: gdaignault@spectrumagri.com

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

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