Deyu Agriculture Comments on Rising Corn Prices
BEIJING, Oct. 29 /PRNewswire-FirstCall/ — Deyu Agriculture Corp. (OTC Bulletin Board: DEYU), an emerging, vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and various grains, today is commenting on the rising price of corn and its impact on the Company.
“According to the Distribution Productivity Promotion Center of China Commerce, the market price of corn in China has increased by almost 16% year on year, driven by increasing demand from the livestock feed and corn processing industries against a backdrop of tight supplies,” said Mr. Jianming Hao, Chairman and Chief Executive Officer of Deyu Agriculture. “Rising corn prices have a modest, yet positive, impact on our margins due to the time lag between when we buy the corn and when we sell it. Contracts with our farmers and our customers are based on published market prices at the time of each transaction. Despite the tight supply conditions in the marketplace Deyu Agriculture continues to enjoy ample access to corn supplies as a result of its long-standing relationships with its farmers. The Company has also strengthened its long-term access to its key agricultural products as a result of the recently announced acquisition of land use rights to over 8,700 acres of farmland in the Jinzhong Province.”
About Deyu Agriculture Corp.
Deyu Agriculture Corp. is an emerging organic and non-organic agricultural products producer and distributor in Shanxi Province of the People’s Republic of China engaged in procuring, processing, marketing and distributing various grain and corn products. Deyu Agriculture maintains a large base in Jinzhong City, Shanxi Province for breeding, cultivating, processing, warehousing, and distributing grain and corn products.
Deyu Agriculture’s web site is located at www.china-deyu.com.
Safe Harbor Statements
This press release contains forward-looking statements made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Deyu Agriculture’s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, general economic conditions; geopolitical events and regulatory changes, availability of capital, changes in the agricultural industry, the Company’s ability to maintain its competitive position. Additional Information regarding risks can be found in the Company’s Quarterly Report on Form 10-Q and in the Company’s recent Form S-1 registration statement filed with the SEC.
SOURCE Deyu Agriculture Corp.