Shandong Zhouyuan Seed and Nursery Co., Ltd. Benefits Long-term From the Government's Reforms in Seeds Industry
October 24 2007 - 9:30AM
PR Newswire (US)
LAIZHOU, China, Oct. 24 /Xinhua-PRNewswire/ -- Shandong Zhouyuan
Seed and Nursery Co., Ltd. (OTC:SZSN) (BULLETIN BOARD: SZSN)
('SZSN' or 'Parent Corporation'), which is incorporated in the
State of Delaware, announced that its subsidiary operating company
in China, Shandong Zhouyuan Seed and Nursery Co., Ltd. ('Zhouyuan'
or 'the Company'), will have long-term benefits from the
government's reforms aimed at liberalizing grain, fertilizer, labor
markets and in realizing the seeds industry's transition form plan
to market. China is the world's largest producer and consumer of
seed. Farmers plant over 12 million metric tons annually, but of
which just over 37 percent is produced by the organized seed sector
(World Bank, 2006). China's seeds sector is becoming more and more
interesting not only by virtue of its enormous scale, but also
because it has been expanding in the midst of rapid transition from
plan to market. In fact since 1985, the Chinese government has
gradually unleashed a series of reforms aimed at liberalizing
grain, fertilizer, and labor markets. The national government has
drawn up ambitious plans to provide better incentives for seed
industry officials, reduce price controls, and eliminate
unnecessary regulations. Today, even seed companies, rather than
price bureaus, set prices for most seeds: most seed companies,
however, do not have the freedom to charge whatever they wish.
Local government officials still indirectly control seed prices by
issuing pricing guidelines. Although prices have risen recently, in
international terms they are still low, and many international
observers believe this is a major constraint in the expansion of
China's seed industry. Prices of hybrid maize seed in China rank
among the lowest in the world. The Chinese government is providing
better incentives for seed companies, including technology
supports, reducing controls and price barriers. Obviously, the
Chinese government is reforming to realize in the future, that seed
companies may be asked to increasingly take on distribution and
marketing functions, and also may have to begin to perform their
own research, a process that has been documented to exist in almost
all developing seed industries. When seed companies begin to take
on new responsibilities and lose administrative support, prices
will almost certainly have to rise. Seed companies, like SZSN, will
then become more profitable. 'In fact, the government encourages
seed companies to apply for administrative funds to develop, and
directly provides relative supports such as low interest loans.
Judging by the prevailing level of seed prices, the government
appears to have met its goal of keeping maize seed affordable for
farmers and has only begun the process of making seed companies
more profitable. Positive opportunities to earn profits, research
institutes and seed companies have much incentive to generate new
products and/or improve their services. And all these will
encourage investment in agricultural research and seed company
facilities, which in turn may have contributed to the up in
agricultural productivity,' Mr. Wang Zhigang, President of SZSN,
commented. About Shandong Zhouyuan Seed and Nursery Co., Ltd.
Shandong Zhouyuan Seed and Nursery Co., Ltd. (SZSN) is the
large-sized hi- tech corporation, which is incorporated in the
State of Delaware under the laws of United States. SZSN, through
its operating subsidiary, Shandong Zhouyuan Seed and Nursery Co.,
Ltd. ('Zhouyuan'), to grow, produce and market the seeds with high
starch content for use in industrial food production in China.
Zhouyuan was organized in 2001 in China under the laws of the
People's Republic of China, and is located in Laizhou, Shandong
province. Its business covers the agriculture seeds development and
distribution over more than twenty provinces in China. Now Zhouyuan
ranks as one of the top three seed producers in the Laizhou
District, which is known as the 'Seed Valley of China'. Safe Harbor
A number of statements referenced in this Press Release, and in our
website, are forward-looking statements, which are made pursuant to
the Safe Harbor Provisions of the Private Securities Litigation
Reform Act of 1995, and within the meaning of Section 27A of the
Securities Act of 1933 and Section 21B of the Exchange Act of 1934.
Any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
and goals, assumption of future events or performance are not
statements of historical fact and may be 'forward-looking
statements.' Forward looking statements are based on expectations,
estimates and projections at the time the statements are made that
involve a number of risks and uncertainties which could cause
actual results or events to differ materially from those presently
anticipated. Forward-looking statements in this Release may be
identified through the use of words such as 'expects,' 'will,'
'anticipates,' 'estimates,' 'believes,' or statements indicating
certain actions 'may,' 'could,' or 'might' occur. Such statements
reflect the current views of Shandong Zhouyuan Seed and Nursery
Co., Ltd. with respect to future events and are subject to certain
assumptions, including those described in this release. These
forward-looking statements involve a number of risks and
uncertainties, including the timely development and market
acceptance of products, services, and technologies, competitive
market conditions, successful integration of acquisitions, the
ability to secure additional sources of financing, the ability to
reduce operating expenses, and other factors. The actual results
that the Company achieves may differ materially from any
forward-looking statements due to such risks and uncertainties.
Shandong Zhouyuan Seed and Nursery Co., Ltd. does not undertake any
responsibility to update the 'forward-looking" statements contained
in this news release. DATASOURCE: Shandong Zhouyuan Seed and
Nursery Co., Ltd. CONTACT: Mr. Lin Qi of Shandong Zhouyuan Seed and
Nursery Co., Ltd., +86-535-221-2279, or Web Site:
http://www.chinaseedcorp.com/
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