Shandong Zhouyuan Seed and Nursery Co., Ltd. Benefits Long-term From the Government’s Reforms in Seeds Industry

LAIZHOU, China, Oct. 24 /Xinhua-PRNewswire/ -- Shandong Zhouyuan Seed and Nursery Co., Ltd. (OTC 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.

Source: Shandong Zhouyuan Seed and Nursery Co., Ltd.
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Keywords: Agriculture