AgFeed was founded in 1995 by five young Chinese agri-businessmen. Originally, the company’s focus was on the sale of pre-mix, the carbohydrates and protein that when mixed with corn and soybean meal form the basic animal ration. Based on their expertise and through the use of industry experts, formulations were developed for the various stages of an animal’s life. Our formulations aided farmers in achieving efficiencies in the use of feedstuffs and resulted in AgFeed becoming a leader in providing safe products and have led to the "Green Certification" of our “Best” product line by the Chinese Government.
In late 2006 AgFeed became a public company in the United States in order to access the capital needed to execute its strategy of consolidation and growth.
The first step in our strategy was to establish a base of hog production through the purchase of larger commercial hog farms. The initial objective was to establish AgFeed as a significant market participant and bring the efficiencies of consolidation to these farms through centralized management and buying power. These acquisitions were completed in 2008.
While significant efficiencies have been realized within our initial group of farms, we recognized that these farms could not reach the production efficiencies typical of enterprise scale western hog production facilities that integrate state of the art facility design, management techniques and genetics.To this end during late 2008 and into 2009 we established strategic partnerships with a leading genetics company, Hypor, (a division of Hendricks) and a leading hog production company, M2P2, LLC. These relationships were established as linchpins in our plan to import the best and most efficient western techniques and methods to China as we developed “greenfield” enterprise scale sow farms. In 2010 we augmented these strategic relationships through an agreement with PIC (a division of Genus PLC).
In September 2010 we acquired M2P2, LLC (today AgFeed USA) establishing a platform from which we could pursue growth opportunities in the United States and also bring "in-house" the techniques, technologies and expertise necessary to fully realize the potential of the enterprise scale, western style sow farms and the resulting production systems that are under development in China.
In March of 2011 we stocked the first of our western-style farms in Dahua. Initial production reached market in the spring of 2012. Our current plans for the development of these enterprise scale farms call for farms housing 50,000 breeding sows with annual production capacity of 1,200,000 market hogs by 2016. During the late spring of 2012 our second new sow farm entered production at Xinyu.
In 2010 we initiated the early planning to move forward with the final stage of deploying a fully integrated enterprise scale hog production system. Establishing a fully integrated production system from the feed that the animals eat, to their breeding and growth and finally to slaughter and processing – the harvest. These contemplated facilities will process hogs that will be produced at our Dahua and Xinyu production pods. The opening of these facilities and their scale will be planned to meet the production output of our production system developed based on the nexus of those sow farms opened in Dahua and Xinyu.