SHANGHAI, CHINA - AgFeed Industries, Inc. (Nasdaq:FEED), a leader in China's premix animal nutrition industry, today announced that AgFeed has signed a premix feed supply agreement with Shanghai Fenghai Enterprises, one of the largest Shanghai hog farm conglomerates to supply premix feed for the client's annual hog production of 300,000 hogs.
In light of China's severe pork shortage problems, Shanghai Fenghai has been expanding hog production capacity and expects to reach 600,000 annual hog production capacity within two years. Shanghai Fenghai is a key supplier of hogs and pork to the city of Shanghai, a major metropolitan area in China with a population of more than 23 million.
Songyan Li, Ph.D., Chairman of AgFeed Industries commented: "China is facing severe pork shortage problems and as a result, pork prices have reached multi-year highs. These market forces have encouraged commercial hog farms to increase hog production as well as seek out quality and effective feed solutions from reliable and proven feed suppliers. Shanghai Fenghai has recognized AgFeed as a premier market leader in China's feed industry and has chosen AgFeed products as part of its strategic growth plan. As China's pork shortage problems become widespread across the country, AgFeed stands to benefit greatly as a result of farmers' growing demand for quality feed products that can effectively deliver faster animal growth rate while not compromise meat quality. AgFeed has an effective marketing plan in place to continue to address growing customer needs."