With the addition of these newly acquired hog farms, AgFeed now owns controlling interest (on average more than 90%) in 24 producing commercial hog farms in several provinces in China, including two breeder hog farms, with an aggregate annual hog production capacity of approximately 550,000 hogs. AgFeed expects these acquisitions to be immediately accretive to 2008 earnings.
AgFeed anticipates strong hog sales through the remainder of 2008. AgFeed plans to acquire additional producing commercial hog farms as several new opportunities have been identified. Building of a new hog farm takes approximately 3 to 4 years from obtaining a license to initial hog production.
AgFeed’s hog farms are strategically located in the Jiangxi Province, FuJian Province, Guangdong Province, Guangxi Province and the Shanghai area. These producing hog farms serve two of China’s wealthiest regions: the Shanghai area and the Guangdong Province. Both regions have the highest hog selling prices and the largest pork consumer base in China.
â€¢ Press Release
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