HQ Sustainable Maritime Industries, Inc., a leader in toxin-free integrated aquaculture and aquatic product processing, today broke ground on an organic feed mill and processing plant in Hainan, China, with members of the business and financial communities in attendance.
The feed mill, which is the first organic-extruded feed mill in Hainan, is expected to be completed in the Fourth Quarter of 2007 and is expected to produce approximately 100,000 tons of organic floating feed per year. The feed mill will serve HQSM's large cooperative farm operations, which were recently doubled in size through HQSM's agreement, announced August 8, 2006 and extended by an additional agreement signed on December 18th, with the Government of Tayang Town, Qionghai City, Hainan Province, which brought HQSM's total cooperative farming capacity to 3,294 acres. Each farm will be required to acquire feed from HQSM's mill to meet the Company's strict organic standards The arrangement is expected to reduce risks for the farmer and to increase HQSM's percentage of profits from feed to processing.
Floating feed is the most efficient feed for large certified organic cooperative farm operations, such as those run by HQSM. There is no floating or organic feed production in Hainan currently. Production is expected to satisfy not only HQSM's expanded demand for its combined aquaculture farms in Wenchang and Qionghai. It will also provide feed for such other aquaculture operations in Hainan as shrimp and other farmed species. The plant is expected to manufacture approximately 100,000 tons annually of feed and will source organic non-GMP corn and soy from China and abroad.