AgFeed Industries acquires Shanghai hog farm
AgFeed Industries, a
leader in China's premix feed and hog raising industries, have announced the acquisition of
a producing commercial hog farm serving China's Shanghai region.
AgFeed acquired 100% ownership of this farm, and a result is positioned
as the largest commercial hog producer in the Shanghai
Shanghai represents one of the
wealthiest consumer markets and one of the highest hog prices in China. AgFeed
now has a controlling interest in 25 producing commercial hog farms
strategically located in the South eastern region of China, providing close
access to end user consumers, including two of China's wealthiest regions where
hog prices are also the highest in China: Shanghai and GuangDong Provinces.
Due to the Chinese cultural preference and consumer insistence on daily
slaughtered fresh, not chilled or frozen pork, close access to consumer markets
is a key to efficient and profitable hog production in China.
China's abundant domestic corn supply,
restriction on corn export and ethanol production, plus AgFeed's increasing
benefits from larger economy of scale in its synergistic hog production and feed
business have led to efficient feed cost for AgFeed.
Dr. Songyan Li,
AgFeed's Chairman, commented: â€œAs global agricultural companies seek to gain
access to the vast consumer pork markets in China, inability to control hog
supply is a real impediment to profitability in the Chinese marketplace. AgFeed
stands to benefit as a stable and reliable supplier of a large number of quality
â€¢ AgFeed Industries
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