Today AgFeed operates 5 feed mills serving over 900 commercial hog accounts and distributes its products through over 1,800 independent retail stores. A safe, high-quality and highly-efficient feed industry is the foundation for sustainable and healthy development of a breeding industry as well as the basic guarantee for the provision of clean, safe protein based food products.
The Chinese feed industry encompasses all phases of Chinese agriculture, which is an indispensable component of improving the Chinese standard of living. The Food Safety Laws passed in 2009 are accelerating the consolidation of the feed industry. In 2007 there were 15,000 feed mills in China with average production capacity of 10,000 tons p.a.; today there are less than 11,000. We expect this trend to continue and accelerate.
We manufacture, distribute, market and sell three main product lines - premix, concentrate, and complete feeds for use in all stages of a pig’s life. We conduct these operations through our subsidiaries Nanchang Best, Shanghai Best, Guangxi Huijie, Shandong Feed, and HopeJia. We also provide educational, technical and veterinary support to our customer base
Our feed operating companies operate manufacturing facilities in Nanchang, Shanghai, Nanning, Shandong, and Hainan provinces, primarily serving the hog industry. Each subsidiary independently conducts local marketing and sales efforts under the direction of a central executive management team. Nanchang Best and Guangxi Huijie are primarily responsible for our ongoing research and development efforts and share their expertise in this area with all of our manufacturing operations.
We have received “Green Certification” from the Ministry of Agriculture of the People’s Republic of China for our premix products under the brand label “BEST”. This “Green Certification” has laid the foundation for our hog farms to supply hogs for “green” pork products.
We believe that our growing customer base and distribution network combined with the increasing demand for our products from the expansion of our hog production division will position us to be a leader in the ongoing consolidation of the feed industry and allow us to achieve a position of significant scale.