Process Management

News last update:6 Aug 2012

AgFeed aims at 1,000 stores in China

AgFeed Industries, Inc. a market leader in China's premix animal nutrition industry, has opened its 380th independently owned retail store in Hunan Province, China, to exclusively sell AgFeed's products.

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
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AgFeed reports continuous growth

AgFeed believes in franchise formula

Editor AllAboutFeed

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