AgFeed Industries, China's largest commercial hog producer and premix feed company has announced record financial results for the year of 2008 with revenue up from $36.16 million in 2007 to $143.66 million.
AgFeed experienced phased-in hog production revenue during the course of 2008, as new farms were brought on line. AgFeed sold approximately 410,000 hogs during the development of an annual capacity of up to 650,000 hogs. Revenue from premix and blended feed sales was $51.75 million, up from $36.07 million in 2007.
Hog production revenue
Revenue from hog production was $91.92 million in 2008, up from less than one million dollars in 2007. Premix and blended feed accounted for 36% of revenue while hog sales accounted for 64%. In addition, AgFeed broadened its direct sales efforts to over 660 commercial hog farms.
AgFeed's income from hog operations was driven by the phasing-in of 30 producing hog farms starting in late 2007. "2008 was a milestone year for the Company. As the year progressed, amid the dysfunctional international economic and credit crisis, AgFeed continued its acquisition program recognising that the next couple of years will be taxing on all businesses," said Dr. Songyan Li, Chairman.
2009 Strategic Plan
AgFeed's plan will direct its mission through 2010 and 2011 during which time the Company believes that the Chinese markets will once again attain double-digit growth rates. Increasing urbanisation and the swift growth of the Chinese middle class, strongly position AgFeed for the expanding Chinese consumer pork market. The company's strategic plans encompasses advancing to the next levels of hog production by the implementation of a science based set of genetic programs which would increase throughput and birthing rates.
The company intends to invest heavily in genetics with a target to support the expanding sow base from 2009's 31,500 sows to 50,000 sows over the next 24 months. The Company has started building its nucleus farm in Wuning China and will stock with pure lines while substantially upgrading the Company's farm environment with world-class bio security measures.
• AgFeed Industries