AgFeed Industries, one of the largest independent hog production and animal nutrient companies in China, has announced the formation of a joint venture with Hypor, a Hendrix Genetics Company, world renowned as a leading provider of superior swine genetics and technology.
The new company, Hypor AgFeed Breeding Company Inc., will develop, operate and market a genetic nucleus farm in Wuning, China. Hypor AgFeed Breeding is owned 85% indirectly by AgFeed and 15% by Hypor.
The Wuning farm will be stocked with the best pure-line animals and genetic material imported from Hypor's purebred facilities in Canada and France for cross-breeding purposes. This facility will supply AgFeed's multiplier breeding farms in Lushan and Ganda with genetically superior hogs that are bred to be productive and efficient, allowing AgFeed to maximise its hog production and improve feed conversions at these facilities. Additionally, any excess capacity produced by the Wuning farm will be marketed to other hog farmers, allowing the joint venture to maximiae its profit potential.
AgFeed Industries' Chairman Songyan Li commented, "We are very excited about taking this next step in the realisation of our strategic plan. When we entered into our original relationship with Hypor in April we embarked on the development of a scientifically bred hog population that would result in the production and sale of about 2 million 'green certified' hogs into the Chinese market during 2010-2011. With the formation of Hypor AgFeed Breeding we will ensure the genetic quality of our hog population from the top of the breeding pyramid to market."
Gerry Daignault, AgFeed's Chief Operating Officer, added, "We believe that this new venture strengthens our existing alliance with Hypor and positions us to exploit the genetics expertise, innovative technology and purebred stock of a world class organization to expand our breeding capacity and the quality of our stock as we grow our hog production business."
Raf Beeren, Director of Hypor Asia, continued, "This joint venture is the natural evolution of the relationship we began with AgFeed earlier this year. Through Hypor AgFeed Breeding, Hypor will have established another breeding facility in China, AgFeed will have developed a ready source of genetics material to produce superior hogs and the Chinese consumer will receive top quality pork."
• AgFeed Industries