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Feed production
Of the various components that make up complete feed rations, the premix, while constituting the smallest proportion of the total blend, (4%), requires the highest attention and technology to produce. Due to technological constraints, only those companies supported by animal nutritionist with years of practical knowledge in animal nutrition and husbandry can produce the premix products that meet the needs of producers.
Vitamin blends and premixes are used in compound feed for poultry, cattle and pigs. AgFeed's pre-mix and specially blended feed for early weaning piglets utilizes the most advanced nutritional techniques resulting in a reputation for premier products in the China market.
In terms of animal feed products, livestock producers may directly buy animal feed in finished form, referred to as ¡°complete¡± feed, which contains premix, protein and carbohydrates blended together, or, they may choose to buy the premix and then combine it with their own protein and carbohydrates (corn, wheat and other energy feeds readily available in the market) to make their own complete feed. Premix provides the essential amino acids and other vitamins and minerals to nutritionally balance the product. Feeding pigs a balanced diet is an essential part of the pork profit equation. Feed costs comprise 60-75% of a Chinese piggery¡¯s expenses; therefore the quality of feed and nutrition has a significant effect on piggery profits.
AgFeed supplies two principle product lines: premix to balance the nutritional requirements for all stages of pig life, and complete feed specifically for the infant or piglet stage of life.
1. Premix
According to the different growth stages of a pig, different additives are necessary to accelerate the growth of the animal and provide safe products for consumption. Premix is composed mainly of essential amino acids, vitamins, minerals, feed drug additives and growth promoting agent. We market 21 different brands of premix that are priced from standard to premium to satisfy wide ranging customer demand. Within each brand there are 7 different mixes that correspond to the different stages of a pig¡¯s life cycle: newborn to 15 kg, 15-30 kg, 30-60 kg, market ready, over 60 kg boar, mating/pregnant and lactating. We provide superior customer service by customizing the premix to the specific needs of each customer. Large-scale pig farms are typically the biggest consumers of our premix. Our veterinarians work with these large pig farms to determine the optimal formulation of complete feed.
2. Piglet complete feed
Our piglet complete feed is designed to both nourish and protect newborns and is composed primarily of proteins, such as fish meal and soy bean (30%), and energy feeds, such as corn, whey powder and lactose (roughly 65%). Local climate and environment also influence the formulation of the piglet complete feed.
AgFeed is one of a handful of companies that have received ¡°Green Certification¡± from the Minister of Agriculture of PRC for its premix products under the brand label ¡°BEST.¡± This means products are safe and environment-friendly, and can effectively promote the healthy growth of pigs. According to current government regulation, pork cannot be accredited by the government as ¡°green¡± unless it is produced from government certified green feed. Having our feed certified as green requires us to adhere to strict operational controls and procedures. This green certification laid the ground for our Hog Farms to produce hogs providing green pork. It is also an incentive for other commercial hog farms to enter into sales contracts with our feed operations.
Hog production
Our 29 meat hog producing farms generate revenue primarily from the sale of meat hogs to slaughterhouses. Our meat hogs are sold primarily in Jiangxi, Shanghai, Hainan, Guangxi, Fujian, Guangdong and other neighboring provinces.
Lushan Breeder Hog Farm generates revenue primarily from the sale of breeder hogs to commercial hog farms and, to a lesser extent, the sale of meat hogs to hog slaughterhouses. It also generates revenue by providing consulting services to hog farmers in the areas of feed production, feed formulation and veterinary services. Lushan¡¯s customers include large-scale hog farms, mid-scale hog farms and small-scale farms. Our breeder hogs are sold throughout the PRC, primarily in southeastern China.
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