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8-K - AgFeed Industries, Inc. | v180978_8k.htm |
EX-99.1 - AgFeed Industries, Inc. | v180978_ex99-1.htm |
EXHIBIT 99.2
AgFeed
Industries, Inc. Announces Major Hog Production Complex
NEW YORK, April 14, 2010
AgFeed Industries, Inc. (Nasdaq: FEED, NYSE Alternext: ALHOG - News), one of the
largest independent hog production and animal nutrient companies in China, today
announced that it has agreed to invest in a hog production project in
conjunction with Xinyu City in Jiangxi province. The two-year project
encompasses the building of 5 western model hog farms, totaling 25,000
sows. The initial phase of the project will encompass an investment
of $18 million to build two 5,000 head sow farms, one 200 head boar stud farm
and one 2,600 head multiplier facility. Upon completion the first
phase of this complex shall have an annual hog production capacity approaching
230,000.
Construction
for the initial phase will begin in May 2010, with the goal of completing the
second phase during 2012. The Xinyu complex will have annual
production capacity of up to 600,000 hogs.
As part
of its agreement with AgFeed, the local authorities will be responsible for
clearing the land and developing the necessary infrastructure for the new
farms. This will include the required water supply, electrical
systems and the construction of the roads and highways necessary to accommodate
all of the farms.
Dr.
Songyan Li, Chairman of AgFeed, said, “The Xinyu site is located 80 miles from
our company’s Nanchang headquarters and 530 miles from Shanghai, one of our
major markets. It is ideally located to support our plans to
establish our company as a fully integrated producer. The agreement
is consistent with our core strategy of: ‘AgFeed, Government, Farmer’, all
working collaboratively to meet growing consumer demand and assuring the highest
standards of food safety. AgFeed providing the western production
systems, including genetics, the government providing support for our production
systems and philosophy towards its goal of assuring food safety, and the
farmers, who are trained in modern western hog raising methods and will
experience increased earnings.”
Mr. Junhong Xiong,
President and CEO, stated, “The Xinyu city government was very active in
recruiting and selecting AgFeed for this project. We look
forward to working on a cooperative basis with local; farmers, banks and
government in arranging financing so that the local farmers can establish modern
finishing facilities of AgFeed’s design. Our team will train, provide
nutritional and other technical support, and guide the local farmers to assure
that the hogs are finished to our high standards. We believe that the
local farmers will make a fair and consistent profit while successfully
implementing our programs. This project is similar to
our project in DaHua, Guangxi Province, where construction began in November
2009. Together our Xinyu and DaHua complexes will have the
capacity to produce over 800,000 top line hogs a year.”
Gerry
Daignault, Chief Operating Officer, commented, “Our joint venture partner M2P2
will direct the process of designing and building the facilities in Xinyu, just
as they are currently doing in DaHua. Our feed division will be
building new feed mills in these cities in order to supply our new centers of
hog production. As part of the development of these new feed mills we
will also introduce western style bulk delivery of our complete hog feed, a
first of its kind in China. All these initiatives move us forward in
our plan to own all three verticals of production: feed, hog and
processing.”
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ABOUT AGFEED INDUSTRIES,
INC.
NASDAQ
Global Market listed AgFeed Industries (www.agfeedinc.com) is a U.S. company
with its primary operations in China. AgFeed has two profitable business lines
-- animal nutrients in premix, concentrates and complete feeds and hog
production. AgFeed is one of China's largest commercial hog producers in terms
of total annual hog production as well as one of the largest premix feed company
in terms of revenues. China is the world's largest hog producing country that
produced over 645 million hogs in 2009, compared to approximately 100 million
hogs produced annually in the U.S. China also has the world's largest consumer
base for pork consumption. Over 62% of total meat consumed in China is pork. Hog
production in China enjoys income tax free status. The feed markets in which
AgFeed operates represent a $20 billion segment of China's $58 billion per year
animal feed market.
SAFE HARBOR DISCLOSURE
NOTICE
This
press release may contain forward-looking information about the Company. You can
identify these statements by the fact that they use words such as "will,"
"anticipate," "estimate," "expect," "project," "intend," "plan," "believe,"
"target," "forecast" and other words and terms of similar meaning in connection
with any discussion of future operating or financial performance or business
plans and prospects. Readers are cautioned not to place undue reliance on
forward-looking statements because actual results may differ materially from
those expressed in, or implied by, the statements. For a list of factors that
could affect the Company’s results, see the Company’s filings with the
Securities and Exchange Commission, including “Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of Operations,”
including “Cautionary Statement for Forward-Looking Statements,” set forth in
the Company’s Annual Report on Form 10-K for the fiscal year ended December
31, 2009. Any forward-looking statement that the Company makes speaks only as of
the date of such statement, and the Company undertakes no obligation to update
any forward-looking statements, whether as a result of new information, future
events or otherwise. Comparisons of results for current and any prior periods
are not intended to express any future trends or indications of future
performance, unless expressed as such, and should only be viewed as historical
data. The information contained in this press release is made as of the date of
the press release, even if subsequently made available by the Company on its
website or otherwise.
Contact: Investor
Relations: AgFeed Industries, Inc. Tel: (917)
804-3584 Email: ir@agfeedinc.com
The
Company's policy is to handle all questions by email to ir@agfeedinc.com and
they will be answered as soon as possible.
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