Shandong Zhouyuan Seed and Nursery Co., Ltd. Announces Increased Production to Meet Wheat Shortages in India and Southeast Asia

24/08/07 Shandong Zhouyuan Seed and Nursery Co., Ltd. which is incorporated in the State of Delaware, announced that it will expand its wheat seed production due to the aggressive demand in India and other countries in Southeast Asia.

It was reported by Bloomberg recently that because the domestic Indian wheat output was unable to satisfy local demand, India would import wheat from other countries for the first time in seven years. The report shows that India could import at least 500,000 tons of wheat this year, valued at approximately USD70 million. The analyst also states that, because the domestic wheat output slides even further in other Southeast Asian countries, imports could also possibly maintain the growing needs in those countries also. Such wheat purchases and imports can possibly raise the sales volume of Chinese agricultural companies, including SZSN's operating subsidiary company in China, Shandong Zhouyuan Seed and Nursery Co., Ltd.. The analyst also points out that, India's import demand on wheat seed will  possibly impel the international wheat price to rise, thus the exporters will be the main beneficiaries.

Mr. Wang Zhigang, President of SZSN, stated, ''The average wheat output in India is approximately 2.5 to 3 tons per hectare, while China is approximately 5 tons. We will use new hybrid seed technology in order to realize sufficient supply. Because short of cultivated area, and lack of fertilizer, the gap in wheat demand and supply will remain in such areas in the next few years, and this is a big chance for us.''