Guangzhou, China, June 21- Sino Agro Food, Inc., an emerging integrated, diversified agriculture technology and organic food company with subsidiaries operating in China, is pleased to announce that it has signed a Joint Venture with SanJiang Agriculture Co. Ltd., a China State owned agriculture company.
SanJiang A Power Agriculture Development Co. Ltd., a subsidiary of Sino Agro Food, Inc., holds a 45% equity interest in the project.
The Joint Venture allows SanJiang Agriculture Co. Ltd. to license the Company's Bio-Organic Fertilizer and Stock-Feed technology. The technology provides for the processing of agricultural waste products (i.e. corn stems, sunflowers stems, rice stems, wheat stems, sweet potatoes leaves, peanut leaves etc.) through a series of germination processes converting the wastes into nutritional feed stocks suitable for the consumption of cattle and sheep. The finished product has a long shelf life, high nutritional value and can be stored outside without being affected by rain or snow. The byproduct of this process is then used to manufacture the Company's Bio-Organic Fertilizer.
This project is estimated by us to produce approximately 2,000 tons of Feed Stock, 2,000 tons of Organic Fertilizer and 4,000 tons of Combined Fertilizer in 2009, with production growing to over 100,000 tons of Feed Stock, 45,000 tons of Organic Fertilizer, 90,000 tons of Combined Fertilizer and 50,000 tons of special Dairy Cow Feed by 2012.
The Company will receive rebates up to 33% of its investment in the project through subsidies provided by the Chinese government. The Company may also receive certain other tax breaks and free value added tax up to 5% of revenue. Combined, these incentives provided by the Chinese government will facilitate the ability to expand operations more rapidly.
Mr. Lee Solomon, Sino Agro Food, Inc. CEO, stated, "The Joint Venture will allow us to develop planned projects more quickly with savings in our development costs due to the tax incentives. Under the Joint Venture, SanJiang will provide the land and factory buildings. We will provide the technology, know-how and management of the operation. At the same time we believe that SanJiang will facilitate our ability to get all related logistics in place and to obtain further land assets as needed."