News 384 views last update:Nov 13, 2007

AgFeed Industries to acquire breeder hog farm

US company AgFeed Industries Inc. announced yesterday in a press release that it is to acquire Jiangxi Lushan Breeder Pig Farm Ltd., the largest breeder hog farm in China situated in the agricultural province Jiangxi.

AgFeed is a leader in China's premix animal nutrition industry. The acquisition, according to company Chairman, Songyan Li, "is part of the strategic plan for 2008 involving growth and acquisitions in two segments: animal premix feed and hog raising in order to take advantage of pricing and other synergies between both businesses."

An amount of US $3.3 million is to be paid for 90% of the pig farm.

Junhong Xiong, CEO of AgFeed, is confident that the company's "earnings growth will continue into 2008 with the addition of the hog farm business."

AgFeed Industries is a US company with its main operations in China.

It is a leading manufacturer, marketer and distributor of premix animal nutrition products targeting China's growing animal feed market worth around $40 billion in 2006 according to China Feed Industry Association.

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• AgFeed Industries

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