SIAF is an agriculture technology and natural food holding company with principal
operations in the People’s Republic of China. The Company acquires and
maintains equity stakes in a cohesive portfolio of companies that SIAF forms
according to its core mission to produce, distribute, market and sell natural,
sustainable protein food and produce, primarily seafood and cattle, to the rapidly
growing middle class in China. SIAF provides financial oversight and strategic
direction for each company, and for the interoperation between companies, stressing
vertical integration between the levels of the Company’s subsidiary food
chain. The Company owns or licenses patents, proprietary methods, and other
intellectual properties in its areas of expertise. SIAF provides technology
consulting and services to joint venture partners to construct and operate food
businesses, primarily producing wholesale fish and cattle. Further joint ventures
market and distribute the wholesale products as part of an overall “farm
to plate” concept and business strategy.
The Company, which was formerly known as Volcanic Gold, Inc. and A Power Agro
Agriculture Development, Inc., was incorporated on October 1, 1974 in the State
of Nevada. The Company was formerly engaged in the mining and exploration business
but ceased the mining and exploring business in 2005. On 24 August 2007, the
Company entered into a merger and acquisition agreement with CA, a Belize corporation
and its subsidiaries CS and CH. Effective of the same date, CA completed a reverse
merger transaction with the Company.
For two years after its introduction in China, the Company operated in the dairy
segment, but sold the dairy business in December of 2009 and began to implement
its five year plan to develop its vertically integrated business operations
consisting of (i) cattle fattening and production of beef products and (ii)
cultivation of fish and prawn and related products. The Company now operates
as an engineering, technology and consulting company specializing in building
and operating agriculture and aquaculture farms in China.
After successfully developing many aquaculture fishery farms, cattle farms
and related business operations (along with sales and marketing of produce and
products) in Australia and Malaysia since 1998, SIAF’s management team
introduced our business activities in China in 2006. We are an engineering and
consulting company that specializes in building and operating agriculture and
aquaculture farms.
To accomplish this, we use our expertise and know how in specific agriculture
and aquaculture technologies. Our “A Power Re-circulating Aquaculture
System,” sometimes referred to herein as APRAS, is a patented and proven
technology for indoor fish farming. We have developed modern techniques and
technologies to grow, feed and house both fish and cattle. These are engineered
into the designs of, and the management systems for, indoor and outdoor fishery
and cattle farms. Our experience managing crops, and employing technologies,
including hydroponic, to work within climate and growing conditions optimizes
production of organic, green and natural agricultural produce.
In all of our developments we have acted as the master engineer, pioneering
the construction and building of farms, from raw land into fully operational
facilities. We complete the construction and building of infrastructure including
staff quarters, offices, processing facilities, storage, and all related production
facilities. Our management teams are responsible for developing all business
activities into effective and efficient operations.
In just a few years, SIAF has matured into a company dedicated to the agriculture
and aquaculture industry in China. We currently maintain operation of our HU
Plantation as well as our services in engineering consulting, specializing in
the development of two major products, namely meat derived from the rearing
of beef cattle and seafood derived from the growth of fish, prawns, eel and
other marine species.
Revenues are generated from activities that we divide into five stand-alone
business divisions or units: (1) Fishery, (2) Cattle & Beef, (3) Organic
Fertilizer, (4) HU Plantation, and (5) Marketing and Trading. This fifth and
newest division, “Marketing and Trading” represents our strongest
push to vertically integrate the Company’s operations, furthering the
Company’s overall “farm to plate” concept.
The Company works with Chinese investors to form operating companies, in which
Sino Agro Food retains the option to acquire equity interest. After a certain
period of time and successful operating results, the Company and the Chinese
investor may form a Sino Foreign Joint Venture Company (“SFJVC”).
Prior to the formal naming, registration, and incorporation of an anticipated
SFJVC, the Company prepays a deposit toward the consideration of its future
SFJVC stake as a percentage of the assets of the fully developed farm. Upon
conversion, the prepayments become equity capital.
The Company oversees financing and provides interoperating strategies, encouraging
vertically integrated growth. China has problems with quality assurance in primary
production, distribution and poor origin traceability, as well as low food quality.
This has created a market where consumers pay significant price premiums for
organic food with brands guaranteeing quality and consistency.
A vertically integrated operation in a fragmented and poorly regulated environment
such as in China is the strategy that will yield the most success for the Company.
Our presence in retailing and wholesale markets generates market power and provides
potential for both margin maintenance and expansion.
Integration into fertilizer and feed production for rearing of beef cattle together
with breeding of prawn brood stock decreases primary production operational
risks as well as the price volatility in production input goods.
Sino Agro Food uses expertise and know-how in specific agriculture and aquaculture
technologies. The Company’s “A Power Re-circulating Aquaculture
System” (the “APRAS”) is a proven recirculating aquaculture
system (“RAS”) technology for indoor fish farming. Sino Agro Food
has developed modern techniques and technologies to grow, feed and house both
fish and cattle. These are engineered into the designs of, and the management
systems for, indoor and outdoor fishery and cattle farms. Today Sino Agro Food
is the world’s largest operator of RAS aquaculture for prawns. In all
developments Sino Agro Food acts as the master engineer, pioneering the construction
and building of farms, from raw land into fully operational facilities. Sino
Agro Food builds the infrastructure including staff quarters, offices, processing
facilities, storage, and all related production facilities; then, manages developing
of all business activities into effective and efficient operations. Sino Agro
Food’s largest customer represents a Company of thirty separate live seafood
wholesalers at the Guangzhou wholesale markets.
The Company holds licenses for fertilizer formulas and for indoor fish farm
techniques, including a “master license” in China for “A Power
Technology” (“APT”), a modular land based fish growing system
and technology utilizing RAS.
Sino Agro Food is an agriculture technology and natural food holding company
with principal operations in China participating in the ongoing transformation
of China’s fragmented agrarian sector into a modern food production industry
using sustainable and profitable methods. Sino Agro Food focuses on seafood
and beef production with integrated wholesale distribution. The Company acquires
and maintains equity stakes in a cohesive portfolio of companies that Sino Agro
Food forms according to its core mission to produce, distribute, market and
sell natural, sustainable protein food and produce, primarily seafood and cattle,
to the rapidly growing middle class in China.
Sino Agro Food employs a strategy of vertical integration from primary production
through processing, distribution and marketing of high quality, organic food
products in the food value chain. China’s fast growing middle class is
creating rapidly rising demand for gourmet and high-quality protein food. The
Company’s core products are live prawns, live eels, whole beef cattle
and packaged beef meat.
The Company’s operations and strategy are executed through a number of
subsidiaries located in China, and the Company contributes financial oversight
and strategic direction to otherwise independent management teams which employ
the Company’s intellectual property and proprietary methods within aquaculture,
beef cattle rearing and production of organic fertilizer.