AgFeed Industries Plans Joint Venture With M2P2

NEW YORK (AP) — AgFeed Industries Inc., a China-based animal feed maker and pork producer, said Wednesday it plans to form a joint venture with U.S. hog producer M2P2 to establish a management company in Asia.

The joint venture will be majority owned by AgFeed. Financial terms were not disclosed.

The venture will focus on introducing the Western model of pork production to China and Asia. Its services will include facility planning, staff training, genetics, bio-security and interactive information systems.

AgFeed, which will be the venture's first customer, plans to use the joint venture's expertise to design, build, and operate a Western model of hog production staffed by U.S. trained Chinese employees.

AgFeed shares dropped 39 cents, or 9 percent, to $3.95 in afternoon trading. The stock has traded between 90 cents and $19.67 during the past 52 weeks.