Tanke BioSciences optimistic on 2012 results

Tanke BioSciences Corporation, producer of livestock feed additives and nutritional products, said the strengthening pork industry in China and incremental sales generated from formation of a new marketing division should result in a significant improvement in both revenue and operating results in 2012 vs. 2011.
According to Tanke CEO and chairman, Guixiong Qiu, the company has benefitted from a sharp reduction in the prevalence of pig diseases that reached their peak in China in 2011.
These diseases, which caused a sharp reduction in the nation's population of healthy pigs – and thus, a corresponding decrease in demand for animal feed additives – has this year been brought under tighter control, elevating both the population of healthy pigs and the demand for animal feed additives.
The company expects this increased demand to continue for the balance of the year and into 2013, said Qiu.
The new marketing division, he added, will be devoted exclusively to serving the product and technical needs of China's larger animal farms – which, as end users of Tanke products, allow the company to realize substantially higher margins and lower marketing costs than do intermediary users such as animal feed producers.
New production and marketing standards
Qiu expects Tanke's business to benefit as a result of new regulations, taking effect on May 1, 2012, governing the production and distribution of animal feed additives throughout China.
These regulations, enacted by the nation's highest authority, the State Council of China, impose dramatically higher fines and penalties on those animal feed additive companies not meeting the new standards.
As a result, many companies – mainly those which have traditionally competed on the basis of price but which have often been cited for serious deficiencies in product quality – are expected to be driven from the marketplace, enabling qualified suppliers to gain a proportionally larger market share.
Finally, as previously reported, a new plant for the production of organic trace minerals, due to be completed in the second quarter of 2013, is expected to further augment the company's nation-leading market share of this rapidly-growing product sector.
Tanke BioSciences Corp. is a China-based integrated biotech company that develops, manufactures, and markets animal feed additives and livestock nutritional products that directly address China's soaring demand for safe, reasonably priced food.

Dick Ziggers

Or register to be able to comment.