AgFeed acquired 100% ownership of this farm, and a result is positioned as the largest commercial hog producer in the Shanghai region.Wealthy Market
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. Corn supply
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 live hogs.â€ Related Website
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