Formed on July 18, 2011, Hunan Shenghua A Power Agriculture Co., Ltd. (HSA) is a joint venture project that is in the business of manufacturing and beef cattle farming. HSA operations in the Linli District of Hunan Province are in the development stage, and include manufacturing and sales of mixed fertilizer, live stock feed, and rearing of beef cattle. As of December 30, 2012, Sino Agro Food, Inc. holds 26% equity directly, and 50% equity indirectly.
Modeled after SJAP, the project's operations include the manufacturing of fertilizer (consisting of organic fertilizer, 100% pure organic mixed fertilizer and lake fish farming organic fertilizer), and growing of pasture grasses that will be manufactured into livestock feed. Construction is nearly complete on new cattle houses, and in 2016 HSA will begin to operate a beef cattle farm using our rotational system.
HSA's first organic fertilizer production plant was established by early 2013 and started producing organic fertilizer. On March 5, 2013, HSA secured the rights to use an enzyme, developed by a Hong Kong company some twenty years ago, that has been utilized by global manufacturers of organic fertilizer. When this particular enzyme is applied to our organic fertilizer it has the ability to convert part of the organic raw materials into potash and phosphate without having to add in chemically formulated potash and phosphate, such that our end fertilizer can be qualified as pure organic fertilizer made with 100% natural organic raw materials. With this pure organic fertilizer HSA is in a position to fully explore the potential market for fish in farm lakes, and thereby to attempt to align itself with the government’s policy of encouraging Lake Fish Farmers to use pure organic fertilizer instead of chemical fertilizers. In addition, cost savings from avoiding the use of chemical potash and phosphate result in a better profit margin for the Company. Sales of pure organic fertilizer commenced during the fourth week of March, 2013.
HSA's manufacturing operations are expected to have a production capacity of 30,000 metric tons of fertilizer per year.