AgFeed Industries Inc. (FEED), a Chinese hog and feed producer, said it bought two hog farms in Fujian province and plans further acquisitions to meet rising pork demand this year.
The two latest purchases will immediately add to 2008 earnings, Nanchang City, Jiangxi-based AgFeed said today in a statement.
The acquisitions increase the company's annual hog-production capacity by about 6.4 percent to 550,000 hogs, Arnold Staloff, an independent director, said in a telephone interview from Cherry Hill, New Jersey. He said AgFeed is China's largest maker of nutrients for hog feed.
AgFeed said it is making purchases instead of developing its own hog farms, which can take as long as four years to build. The company, which now owns 24 farms, said this month it bought 16 farms in April and five in January.
``We are experiencing both significantly increasing hog sales as well as high hog selling prices,'' Chairman Songyan Li said in today's statement.
AgFeed fell 86 cents, or 5.6 percent, to $14.47 at 4 p.m. in Nasdaq Stock Market trading. The shares have gained 71 percent this year.
The company's farms serve the Shanghai region and Guangdong province, which have the highest hog prices in China, AgFeed said.
To contact the editor responsible for this story: Kevin Orland at email@example.com.