Chinese Feed Company Signs Supply Agreement with Shanghai Hog Farm

AgFeed Industries Inc., a leader in China's premix animal nutrition industry, has announced a premix feed supply agreement with Shanghai Fenghai Enterprises, one of the largest Shanghai hog farm conglomerates. It will supply premix feed for Shanghai Fenghai's annual production of 300,000 pigs.

In light of China's severe pork shortage problems, Shanghai Fenghai has been expanding hog production capacity and expects to reach 600,000 annual hog production capacity within two years. Shanghai Fenghai is a key supplier of hogs and pork to the city of Shanghai, a major metropolitan area in China with a population of more than 23 million.

Songyan Li, Ph.D., Chairman of AgFeed Industries commented: "China is facing severe pork shortage problems and as a result, pork prices have reached multi-year highs. These market forces have encouraged commercial hog farms to increase hog production as well as seek out quality and effective feed solutions from reliable and proven feed suppliers.

" Shanghai Fenghai has recognized AgFeed as a premier market leader in China's feed industry and has chosen AgFeed products as part of its strategic growth plan. As China's pork shortage problems become widespread across the country, AgFeed stands to benefit greatly as a result of farmers' growing demand for quality feed products that can effectively deliver faster animal growth rate while not compromise meat quality. AgFeed has an effective marketing plan in place to continue to address growing customer needs."

AgFeed Industries is a U.S. company with its main operations in China. AgFeed is a public company listed on the NASDAQ Stock Market in the United States. Through its operating subsidiaries in China, AgFeed is a leading manufacturer, marketer and distributor of premix animal nutrition products targeting China's growing animal feed market. China's animal feed market was approximately $40 billion in 2006 according to China Feed Industry Association.