SOURCE: Sino Agro Food, Inc.

June 19, 2009 10:15 ET

Sino Agro Food, Inc. Signs Joint Venture With China State Owned SanJiang Agriculture Co. Ltd

GUANGZHOU, CHINA--(Marketwire - June 19, 2009) - Sino Agro Food, Inc. (PINKSHEETS: SIAF), an emerging integrated, diversified agriculture technology and organic food company with subsidiaries operating in China, is pleased to announce that it has signed a Joint Venture with SanJiang Agriculture Co. Ltd., a China State owned agriculture company. SanJiang A Power Agriculture Development Co. Ltd., a subsidiary of Sino Agro Food, Inc., holds a 45% equity interest in the project.

The Joint Venture allows SanJiang Agriculture Co. Ltd. to license the Company's Bio-Organic Fertilizer and Stock-Feed technology. The technology provides for the processing of agricultural waste products (i.e. corn stems, sunflowers stems, rice stems, wheat stems, sweet potatoes leaves, peanut leaves etc.) through a series of germination processes converting the wastes into nutritional feed stocks suitable for the consumption of cattle and sheep. The finished product has a long shelf life, high nutritional value and can be stored outside without being affected by rain or snow. The byproduct of this process is then used to manufacture the Company's Bio-Organic Fertilizer.

This project is estimated by us to produce approximately 2,000 tons of Feed Stock, 2,000 tons of Organic Fertilizer and 4,000 tons of Combined Fertilizer in 2009, with production growing to over 100,000 tons of Feed Stock, 45,000 tons of Organic Fertilizer, 90,000 tons of Combined Fertilizer and 50,000 tons of special Dairy Cow Feed by 2012.

The Company will receive rebates up to 33% of its investment in the project through subsidies provided by the Chinese government. The Company may also receive certain other tax breaks and free value added tax up to 5% of revenue. Combined, these incentives provided by the Chinese government will facilitate the ability to expand operations more rapidly.

Mr. Lee Solomon, Sino Agro Food, Inc. CEO, stated, "The Joint Venture will allow us to develop planned projects more quickly with savings in our development costs due to the tax incentives. Under the Joint Venture, SanJiang will provide the land and factory buildings. We will provide the technology, know-how and management of the operation. At the same time we believe that SanJiang will facilitate our ability to get all related logistics in place and to obtain further land assets as needed."

ABOUT SANJIANG AGRICULTURE CO. LTD.

SanJiang Agriculture Co. Ltd. is a State owned China agriculture company. SanJiang Agriculture Co. Ltd. engages in cattle and sheep farming, sun flower plantations, slaughter houses, starch manufacturing, potato plantations, pig farming, fisheries and property development. The Company currently employees a total of 35,000 people.

ABOUT SINO AGRO FOOD, INC.

Sino Agro Food, Inc. ("SIAF") (http://www.siafchina.com) is an integrated, diversified agricultural technology and organic food company focused on developing, producing and distributing agricultural products in the Peoples Republic of China. The Company intends to focus on meeting the increasing demand of China's rising middle class for gourmet and high-quality food items. Current lines of business include the manufacture and distribution of Bio-Organic Fertilizer and Stock-Feed, as well as, fisheries, dairies, and Hylocereus Undatus plantations. SIAF's products are produced to meet the high organic quality standards of the United Kingdom. SIAF is owner of a patented process; the conversion of corn stalk into high quality feed for livestock and is the "Master Licensee" for China with exclusive right to a patented Bacterial used in converting food based agriculture produce wastes into nutritional feed products that are also applicable in the manufacturing of Bio-Organic fertilizer. The Company also holds the "Master License" for China on a modern re-circulating Aquaculture Technology "A Power RAS Technology" that has the capacity to commercially grow quality table fish and seafood free from chemical and pollution in enclosed modules on land in a system designed to promote economic sustainability and viability. Currently the Company has total employment of 520 persons of which 60 are skilled and experienced management staff.

FORWARD-LOOKING STATEMENTS

This release contains certain "forward-looking statements" relating to the business of SIAF and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on SIAF's current expectations and beliefs concerning future developments and their potential effects on SIAF. There can be no assurance that future developments affecting SIAF will be those anticipated by SIAF. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. SIAF undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Contact Information

  • Contact:
    Sino Agro Food, Inc.
    Tel: 6012-2004963
    Email: Email Contact