Shandong Zhouyuan Seed
and Nursery Co., Ltd. Plans to Sign
Contract with Local Farmers to Cope
with Increasing Demand
LAIZHOU, China, July 27 /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.
SOURCE Shandong Zhouyuan Seed and
Nursery Co., Ltd.
