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Tianli Agritech, Inc. (OINK) To Adopt New Retail Expansion Strategy

|Includes: Tianli Agritech, Inc. (OINK)

Tianli Agritech, based in Wuhan City, China, is a leading producer of hogs and retailer of pork products in the country. Specifically, the company breeds, raises, and sells breeder and market hogs in China and is developing a retail channel for its pork products, including high-value, black hog meat.

The company announced today that it is refocusing its retail expansion strategy. In conjunction with that, Tianli reported it is terminating the exclusive agreement with An Puluo Food, Inc. executed on March 29, 2011. The two firms began selling branded packaged pork though An Puluo's retail distribution channels in April 2011. But results have been disappointing.

Tianli Agritech has decided to diversify its retail distribution to more partners across China in order to reach a broader customer base in larger cities for its branded pork products. This decision is part of a revamp of its retail growth strategy. The company's expansion plan centers around its Enshi Black Hog program started in the third quarter of last year. It signed an exclusive 5-year agreement with government authorities in the Enshi Autonomous Prefecture allowing Tianli to raise, process, and sell Black Hog products, which command premium prices and profit margins.

Tianli is building its own brand in preparation for the launch of its nationwide Black Hog meat program in the third quarter of this year. The company is moving to implement this plan as quickly as possible in order to meet the rapidly growing demand by Chinese consumers for higher quality pork products. Pork consumption in the country has increased by 20 percent over the past decade.

For further information about Tianli Agritech and its business, please visit the company's website at

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