AgFeed Industries, Inc. is an international agri-business with operations in the United State and China. In the United States our hog production system sets standards in production efficiency and productivity. We are using this expertise to lead the modernization and integration of the Chinese hog production industry. Founded in 1995 with a focus on animal nutrition today AgFeed is made up of two distinct operating businesses, Animal Nutrition and Hog Production.
Our operating strategy is based on exporting our techniques, technologies and expertise to address certain core Chinese market dynamics. Pork is a staple of the Chinese diet and is the primary source of the protein consumed in China. The duel imperatives of government regulation assuring food safety and the security of the food chain together with growing consumer demand for reliably safe food are driving consolidation and market growth. The growing urbanization of China acts as a further force of consolidation as enterprise scale market participants are required in order to efficiently and effectively serve a much more concentrated distribution system.
Our animal nutrition business serves hog producers throughout southeastern China through 5 feed mills where we produce additive premix, concentrates and complete feed. We have exclusive distribution arrangements with nearly 631 independently owned retail stores and serve over 383 commercial 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 “Green Certification” has laid the foundation for our hog farms to supply hogs for “green” pork products.
In the United States we produce approximately 1.3 million market hogs annually through our system of breeding facilities in Colorado, Oklahoma and North Carolina and contract finishing facilities in Iowa.
AgFeed’s Chinese based hog production business consists of 21 existing, legacy farms and 2 enterprise scale, western style (technologically advanced) sow farms. Our hog production is characterized by the transformation of our existing 21 farms with the most effective, efficient and safe modern western standards, while our new production pods have been designed with full consideration for importing and employing western technologies, methods, genetics and techniques.
Our first enterprise scale sow farm, in Dahua, delivered animals to market in the fourth quarter of 2011. Our second enterprise scale sow farm, in Xinyu, will deliver its first animals to market late in 2012. Our plan is to continue development and construction of these enterprise scale sow farms with the related finishing barns in order to establish true 21st century enterprise scale production systems.
Our Harvesting (slaughter, processing & marketing) business planning initiative was established in 2010 and will represent the next step in AgFeed’s efforts to deploy a fully integrated hog production system in China. Our system will range from the manufacture of the highest quality, safe nutrition products for the hog industry... to the most modern and efficient breeding operations... to highly efficient state of the art processing facilities.