Tuesday
September 18, 8:00 am ET
SHANGHAI, China, Sept. 18, 2007 (PRIME
NEWSWIRE) -- AgFeed Industries, Inc. (NasdaqCM: FEED
- News)
(website: http://www.agfeedinc.com
), a leader in China's premix animal nutrition industry,
today announced that AgFeed has signed a premix feed
supply agreement with Shanghai Fenghai Enterprises,
one of the largest Shanghai hog farm conglomerates to
supply premix feed for the client's annual hog production
of 300,000 hogs.
In light of China's severe pork shortage
problems, Shanghai Fenghai has been expanding hog production
capacity and expects to reach 600,000 annual hog production
capacity within two years. Shanghai Fenghai is a key
supplier of hogs and pork to the city of Shanghai, a
major metropolitan area in China with a population of
more than 23 million.
Songyan Li, Ph.D., Chairman of AgFeed
Industries commented: "China is facing severe pork
shortage problems and as a result, pork prices have
reached multi-year highs. These market forces have encouraged
commercial hog farms to increase hog production as well
as seek out quality and effective feed solutions from
reliable and proven feed suppliers. Shanghai Fenghai
has recognized AgFeed as a premier market leader in
China's feed industry and has chosen AgFeed products
as part of its strategic growth plan. As China's pork
shortage problems become widespread across the country,
AgFeed stands to benefit greatly as a result of farmers'
growing demand for quality feed products that can effectively
deliver faster animal growth rate while not compromise
meat quality. AgFeed has an effective marketing plan
in place to continue to address growing customer needs."
About AgFeed Industries, Inc.
AgFeed Industries is a U.S. company
with its main operations in China. AgFeed is a public
company listed on the NASDAQ Stock Market in the United
States. Through its operating subsidiaries in China,
AgFeed is a leading manufacturer, marketer and distributor
of premix animal nutrition products targeting China's
growing animal feed market. China's animal feed market
was approximately $40 billion in 2006 according to China
Feed Industry Association.
Safe Harbor Statement
All statements in this press release
that are not historical are forward-looking statements
made pursuant to the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995.
You are cautioned not to place undue reliance on any
forward-looking statements in this press release as
they reflect AgFeed's current expectations with respect
to future events and are subject to risks and uncertainties
that may cause actual results to differ materially from
those contemplated. Potential risks and uncertainties
include, but are not limited to, the risks described
in AgFeed's filings with the Securities and Exchange
Commission.
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