NEW YORK — One of the largest independent hog production and animal-nutrient companies in China, AgFeed Industries Inc., has formed a joint venture with Hypor B.V., a Hendrix Genetics company, a leading global provider of swine genetics and technology.
Called Hypor AgFeed Breeding Company Inc., the new company will develop, operate and market a genetic nucleus farm in Wuning, China. Hypor AgFeed Breeding is owned 85% indirectly by AgFeed and 15% by Hypor.
According to a news release, the Wuning farm will be stocked with the best pure-line animals and genetic material imported from Hypor's purebred facilities in Canada and France for cross-breeding purposes. This facility will supply AgFeed's multiplier breeding farms in Lushan and Ganda with genetically superior hogs that are bred to be productive and efficient, allowing AgFeed to maximize its hog production and improve feed conversions at these facilities.
Excess capacity produced by the Wuning farm will be marketed to other hog farmers, allowing the joint venture to maximize its profit potential.
"We are very excited about taking this next step in the realization of our strategic plan," said Songyan Li, AgFeed Industries' chairman. "When we entered into our original relationship with Hypor in April we embarked on the development of a scientifically bred hog population that would result in the production and sale of about 2 million 'green certified' hogs into the Chinese market during 2010-2011. With the formation of Hypor AgFeed Breeding, we will ensure the genetic quality of our hog population from the top of the breeding pyramid to market."
"This joint venture is the natural evolution of the relationship we began with AgFeed earlier this year," said Raf Beeren, director of Hypor Asia. "Through Hypor AgFeed Breeding, Hypor will have established another breeding facility in China, AgFeed will have developed a ready source of genetics material to produce superior hogs and the Chinese consumer will receive top quality pork."