Sino Agro Food, Inc. Awarded Aromatic Beef Sales Contract, Potential Corporate Revenues up to USD $18M
March 28 2012 - 8:30AM
Business Wire
Sino Agro Food, Inc. (OTCBB: SIAF.OB), an emerging integrated,
diversified agriculture technology and organic food company with
principal operations located throughout the Peoples Republic of
China (“PRC”), is pleased to announce that our wholly-owned
subsidiary company, Macau Eiji Company Limited, has been awarded a
sales contract (the “Contract”) to supply its aromatic beef to a
Chinese party engaged in the purchase and sale of cattle throughout
the PRC. Based on internal analysis, the Company believes that
revenues generated from this Contract could potentially be worth as
much as approximately US $18 million, subject to future market
cattle prices and demand.
The Contract calls for the delivery of 4,000 head of cattle of
Simmental and Charolais breeds. The cattle will weigh between 600kg
to 750kg with meat content at 52% or more of DWT (deadweight
tonnage) at time of delivery. The first 1,000 head of cattle are to
be delivered by December 31, 2012 with the remaining 3,000 head
delivered through fiscal year 2013.
Wholesale prices for live cattle are currently averaging
$3.94-$4.73/Kg depending on locality (i.e. North or South China).
Based on current demand and the above-quoted wholesale prices, the
Company believes it could realize revenues of approximately $4.1M -
$4.7M USD during Fiscal Year 2012 from the Contract. Barring a
downturn in demand and prices, the Company believes it could
realize revenues of approximately $12.3M - $14.1M USD during Fiscal
Year 2013.
Mr. Solomon Lee, Chief Executive Officer of the Company, stated,
"Over the past several months, beef prices have been rising sharply
in China. Two months ago the wholesale price for live cattle was
between $2.50 and $3.15 per kilogram. Today's prices have risen to
an average of approximately USD $3.94-$4.73 per kilogram. We expect
this trend to continue and we believe that we could see prices as
high as USD $5.92 per kilogram by the end of Fiscal Year 2012. With
the rapid rise of the middle class and improved living standards,
beef markets in China are accelerating due to a greater demand for
beef, especially higher quality grades. Our Aromatic Beef
technology provides consumers with a product that meets these
demands. We look forward to potentially announcing more beef
contracts in the future as we attempt to expand our operations in
2012 with the development of more cattle farms, currently targeting
the districts of Enping City and Hunan Linli, and abattoir and
boning facilities on a 33,000 m2 block of land adjacent to our
Xining SanJiang A-Power’s property, that is expected to be acquired
this year. The Company currently has three beef cattle farms in
operation located throughout China.”
ABOUT SINO AGRO FOOD, INC.
Sino Agro Food, Inc. (“SIAF”) (http://www.sinoagrofood.com) and
(http://www.siafchina.com) is an integrated, diversified
agricultural technology and organic food company focused on
developing, producing and distributing agricultural products in the
Peoples Republic of China. The Company intends to focus on meeting
the increasing demand of China’s rising middle class for gourmet
and high-quality food items. Current lines of business include the
manufacture and distribution of beef and lamb products, fish
products, bio-organic fertilizer, stock feed and cash crops.
Not a Broker/Dealer or Financial Advisor
Sino Agro Food, Inc. is not a Registered Broker/Dealer or a
Financial Advisor, nor does it hold itself out to be a Registered
Broker/Dealer or Financial Advisor. All material presented in this
press release, on the Company’s website or other media is not to be
regarded as investment advice and is only for informative purposes.
Readers should verify all claims and conduct their own due
diligence before investing in Sino Agro Food, Inc. Investing in
small-cap, micro cap and penny stock securities is speculative and
carries a high degree of risk.
No Offer of Securities
None of the information featured in this press release
constitutes an offer or solicitation to purchase or to sell any
securities of Sino Agro Food, Inc.
FORWARD LOOKING STATEMENTS
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.