Sino Agro Food, Inc. (Pink Sheet: SIAF), an emerging integrated, diversified agriculture technology and organic food company with subsidiaries operating in China, is pleased to announce the results of a recent meeting with HuangYuan government officials as well as provide an update on current projects under construction.
In a recent meeting of Qinghai and HuangYuan government officials in China, the government officially recognized in writing the importance of SanJiang A Power’s project enzyme, bio-organic fertilizer, livestock feed and modern cattle housing operations to its overall regional agricultural development. One of the central committees goals was to, “vigorously support the industrialization of agriculture leading companies; enhance the quality characteristics of the local agricultural and livestock products; make the leading companies become a force for the development of the rural economy”. As a result, the Company will now qualify for additional government grants that will match dollar for dollar investments made by Sino Agro Food starting in 2011.
To date, the HuangYuan government has provided grants totaling RMB 900,000 as well as provided infrastructure support and construction valued at approximately RMB 1,500,000 for the SanJiang, HuangYuan joint venture project.
Construction continues at the SanJiang, HuangYuan joint venture project with the office building now reaching its second floor of construction. The joint venture is also expecting the arrival of its first 120 head of cattle by the end of October. The joint venture has fully booked its sales of 10,000 MT of fertilizer for 2010 with sales prices coming in 20% higher than expected. Feedstock crop harvest averaged 3 MT per MU, which was slightly lower than expected due to previous heavy rains washing out some areas however gains in other business will keep overall revenue at previous estimates.
The Company is wrapping up comments with its attorney in regards to its Form 10 filing with the Securities and Exchange Commission to become a fully reporting company. The Company anticipates completing all tasks within the next two weeks.
This release contains certain “forward-looking statements” relating to the business of SIAF and its subsidiary companies, which can be identified by the use of forward-looking terminology such as “believes, expects” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on SIAF’s current expectations and beliefs concerning future developments and their potential effects on SIAF. There can be no assurance that future developments affecting SIAF will be those anticipated by SIAF. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. SIAF undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.