LAIZHOU, China, July 28 /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 operating subsidiary company in China, Shandong Zhouyuan Seed and Nursery Co., Ltd. ("Zhouyuan" or "the Company"), is planning to establish new relationships with local farmers to guarantee that the Company can buy back all the seeds from the crop in order to meet the increasing demand of hybrid seeds.
The Company plans to offer the original seeds to the contracted farmers, and the estimated total farming area will reach more than 8,000 acres this year. In accordance with the procedures set by the Company and the assistance provided in the form of new technology, the farmers will produce and then re-sell seeds to the Company in the mature season. SZSN also hopes that such a mode of operation can realize mutual benefits among farmers.
China is the second largest seed market in the world. The estimated annual average demand of seed is around 12.5 billion kilograms, and the trade volume is over 4.5 billion kilograms. Due to the promulgation and implementation of the new Seed Law from the WTO framework agreement and the influence of economic globalization, seed-producing companies in China have declined since 2002. However, in terms of market capacity, the total size of current domestic seeds in the market is around RMB 22 billion (USD 2.9 billion). Experts forecast that in 2010, the market scale of China will reach RMB 30 billion (USD 3.9 billion), showing the huge capacity and growth in this industry. Moreover the current level of profitability is still slightly higher than many traditional industries. (Resources from http://www.ccmnet.com )
"According to the data collected by us, the area of corn seed farming and producing will reach to 4.9 million acres, and the final production will be up to 1.2 billion kilograms," said Mr. Wang Zhigang, President of SZSN. "Attracted by such high-potential market, we must adopt a new operation mode to cope with the increasing demand. "
About Shandong Zhouyuan Seed and Nursery Co., Ltd.
Shandong Zhouyuan Seed and Nursery Co., Ltd. (SZSN) is a large-sized hi-tech corporation 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 agricultural development and distribution of seeds to 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.
