SOURCE: AgFeed Industries, Inc.

March 20, 2008 06:05 ET

AgFeed Industries Expands Its Agricultural Product Distribution Platform in China Through Its 630th Independently Owned Exclusive Retail Chain Store

AgFeed Is on Track to Have a Total of 1,000 Independently Owned Chain Stores in 2008

SHANGHAI, CHINA--(Marketwire - March 20, 2008) - AgFeed Industries, Inc. (NASDAQ: FEED), a market leader in China's premix feed and hog raising industry, today announces that the 630th independently owned exclusive premix feed product distribution chain store has opened in China. At the end of 2007, there were 503 stores.

Since January 2007, AgFeed has developed a highly effective retail product sales channel of distributing premix feed through independently owned stores across China. These stores exclusively market AgFeed premix products to end users including small and medium-sized hog farms and individual hog farmers. Approximately 75% of China's 600 million annual hog production is supplied by individual backyard farmers.

Comments by Songyan Li, Ph.D., AgFeed's Chairman: "As China's hog prices have reached historical highs, AgFeed benefits from growth in both of our integrated businesses -- premix animal feed and hog production. Our independently owned retail chain stores have become an effective distribution platform, selling AgFeed's and potentially cross selling other global companies' agricultural products in the vast Chinese agricultural markets. We believe our premix feed distribution channel represents significant enterprise value for our shareholders. We are on track to have a total of 1,000 independently owned chain stores by the end of 2008."

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. Approximately 75% of China's total hog supply is from backyard individual hog farmers, while approximately 65% of China's total meat consumption is pork.

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