AgFeed now supplies hogs directly to HK

One of the hog farms belonging to Nasdaq-listed AgFeed Industries, Inc., the Wannian Xiandai hog farm, can now directly supply hogs to the Hong Kong market, as the company got the direct export license given by the Chinese Ministry of Commerce.

The approval is significant as the Hong Kong market has a high demand and pays premium prices for hogs that meet the highest quarantine and quality standards during the production process.

Because of the recent prolonged market hog shortage in China, hog prices have reached historical highs. AgFeed is currently selling its hogs at approximately US$250 per hog, which is 8.6% higher than the previously estimated US$221 per hog.

AgFeed's hog raising business has recently profited from a favorable market environment that stems from the cost stability of corn, which is an important hog feed component, as well as government grants, subsidies and perpetual income tax free status due to China's severe hog shortage.

In January 2008, AgFeed acquired a majority interest in five commercial hog farms. Currently, AgFeed owns six hog farms and anticipates that its yearly hog production at these facilities will reach 120,000 hogs in 2008.