Organic Fertilizer

SIAF's Organic Fertilizer business segment contains the operations of SIAF's subsidiary Hunan Shenghua A Power Agriculture Co., Ltd. (HSA) in Linli District, Hunan Province. Revenue for three months ended 30 September 2015 was USD 4.9 million, or 4 percent of the Group's total revenue of USD 124.7 million in the same period. Gross profit for the Organic Fertilizer division for the three months ended 30 September 2015 was USD 1.9 million, or 6 percent of the Group's total gross profit of USD 32.3 million in the same period.

The operation in Linli District, Hunan Province, is run by HSA, a 76% owned Chinese subsidiary. HSA conducts the following business activities, both of which are in the development stage:

  • manufacturing and sales of organic and mixed fertilizer,
  • cultivation of pastures and crops in preparation for the establishment of beef cattle farms, and
  • rearing of beef cattle

Organic Fertilizer operations at SIAF's HSA are modeled after those developed at Qinghai Sanjiang A Power Agriculture Co., Ltd. (SJAP). Relevant 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.

Photos at the top of this page and following were taken at HSA in September 2015:


Fertilizer fermenting before it is packaged.

 

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