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News 182 views last update:6 Aug 2012

AgFeed believes in franchise formula

AgFeed Industries, Inc, US public company headquartered in China and market leader in China's premix feed market has launched its 120th franchise chain store in the country.

Songyan Li, chairman of AgFeed Industries said: "Since we pioneered the model of independently owned franchise chain store sales in January 2007, we have experienced significant success both in product sales and new sales channel development.

"Our current dual channel product distribution system is unique and highly effective in our industry. We have developed over 600 nationwide wholesalers targeting commercial hog farms and over 120 franchise chain stores targeting individual farmers.

More distribution units
"We will continue to deepen market penetration by adding new distribution outlets throughout the year. As pork prices are at the highest level in the last eight years in China and as wealthier Chinese consumers demand more and quality meat products, we are experiencing strong sales for our products across all product lines."

John Egan, Jr., an AgFeed independent director and who visited Agfeed recently in China, commented that, "abundant opportunities for acquisitions exist in the vast and highly fragmented animal nutritional feed market in China."

Three takeovers
AgFeed announces that it is in various stages of discussion to acquire three additional businesses in the animal feed industry, which it expects to finalise in the coming months. The company expects the three businesses to contribute additional revenue and net income to AgFeed.

About AgFeed
AgFeed Industries is the first China-based animal nutritional product company publicly traded in the US.

Through its operating subsidiaries which were founded in 1995 in China, AgFeed is a leading manufacturer, marketer and distributor of premix animal nutrition products targeting China's vast and growing animal feed market.

China's animal feed market was approximately $40 billion in 2006 according to China Feed Industry Association.

 

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