AgFeed aims at 1,000 stores in China

Since January 2007, AgFeed has developed a product sales
channel of marketing premix feed through independently owned stores across China
that exclusively offer AgFeed’s products. These stores target individual, small
and medium sized pig farms.

Effective distribution
model
AgFeed believes that its retail distribution model not only deepens
market penetration but also establishes long term brand loyalty among individual
pig farmers.

According to the China Feed Industry Association more than
530 million pigs are raised in China each year compared to approximately 100
million in the US.

Pork represents approximately 65% of all meat
consumption in China. Approximately 70% of all pig production in China is
contributed by individual pig farmers in a highly fragmented market represented
by China’s 500 million farmers that rely on animal raising and field output for
income.

Since pigs in China are raised and sold year-round, it is
AgFeed’s experience that feed product sales benefit from lack of
seasonality.

Aiming at 1000 stores
Songyan
Li, AgFeed’s chairman commented, “AgFeed has been able to build strong brand
loyalty and greater customer acceptance in China for our products since we
launched our independently owned retail store marketing model in early
2007.

“We expect to have relationships with between 450 and 500
independent retail stores by the end of 2007 and has a goal of establishing over
1,000 independently owned retail stores by year end 2008.”

Related website:AgFeed
Inc

Also see:
AgFeed reports continuous growth

AgFeed believes in franchise formula