The Chinese commercial hog farm industry is the largest in the world, accounting for more than half the annual global production. AgFeed Industries is China’s largest premix feed company, and has been named one of China’s top ten hog producers.
Founded in 1995, AgFeed produces well over 600,000 hogs a year at its 28 farms, with the help of more than 1,500 employees. The company also owns five premix feed plants, which are located in some of China’s most profitable feed markets. These facilities ship feed to 900 independently owned and operated retail chain stores, as well as provide for the wholesale networks.
AgFeed’s premix feed shortens the length of time in which a hog reaches full growth. It is licensed by the Chinese Ministry of Agriculture, and does not contain any harmful growth hormones or steroids; only a proprietary mix of vitamins, minerals, and proteins that act to stimulate hog growth.
On Thursday, the company went public with a statement assuring its customers that it has never used melamine, a substance that has recently come under scrutiny after causing sickness in thousands, and the deaths of four babies. AgFeed had petitioned the Chinese government to test its stock, and no melamine was found in either AgFeed products, or raw materials.
Also in recent news, was the company’s decision to initiate a $10 million share buyback program and management share lockup agreement. AgFeed’s board of directors are the company’s largest shareholders, and have agreed to enter into a one-year share lockup. It is reported that no member of management or the board has sold a single share since the company was founded.
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