AgFeed’s Chinese operations are focused on southeastern China. This operating footprint is the heart of China’s hog production and allows us to serve key markets. The population of our operating area is in excess of 580 million.
- Feed Mill
- Hog Farm
From our Asian headquarters in Nanning, China we coordinate the activities of our 1,149 Chinese employees.
Our U.S. headquarters is in Hendersonville, TN and our production system spreads from Colorado to North Carolina. Currently this system produces approximately 1.3 million market hogs annually and employs 216 people.
- Finishing System
- Feed Mill
- Hog Farm
In our animal nutrition business we operate 5 feed mills. We have exclusive distribution agreements with over 631 independently owned retail stores and directly serve over 383 commercial hog farms.
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 means that these products are safe, environmentally friendly, and can effectively promote the healthy growth of pigs. According to Chinese government regulations pork can only be accredited, as “green” if it has been produced using government certified “green” feed. This “Green Certification” has laid the foundation for our hog farms to supply hogs for “green” pork products.
Our mills have an annual production capacity of 182,400 metric tons based upon our current mix of pre-mix and bagged complete feeds and single shift operation. During the first half of 2012, we delivered 63,376 metric tons of feed.
Our 21 legacy Chinese farms, purchased in 2007 & 2008, are spread throughout southeastern China. These farms have annual production capacity of 330,000 - 350,000 based on a sow base of 19,000. In March of 2011 we stocked the first of our western style farms in Dahua. Initial production reached the market in the fourth quarter of 2011. Our current plans for the development of these enterprise scale sow farms call for farms housing 50,000 breeding sows with annual production capacity of 1,200,000 market hogs by 2016.
During 2010 we commenced the business planning to move forward with the final step of our strategy of deploying a fully integrated hog production systems. The strategic direction of our planning is to develop harvest facilities to process the 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. This integration of the production system from genetics and breeding through to the harvesting of the animal provides for the necessary quality controls for a production system to verify food safety and traceability.