BEIJING, CHINA - Deyu Agriculture Corp. (OTC Bulletin Board: DEYU), a vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and grains, today announced that it has entered into an agreement to acquire the land use rights to approximately 8,600 acres of farmland located in Jinzhong City, Shanxi Province. The Company paid $4.1 million in exchange for ownership rights for periods ranging from 40 to 47 years. The land will be used for the cultivation of organically grown grains.
"Thisacquisition is a key component of Deyu Agriculture's strategic growth plan. The organically grown crops from this farmland will ensure that the Company has an adequate supply of high quality grains as we expand our product offering to include instant organic grain-based food," said Mr. Jianming Hao, Chairman and Chief Executive Officer of Deyu Agriculture. "The tradition of the small farmer is time-honored in China and there is very little large scale farming. We have achieved scale through exclusive rights agreements to over 109,000 acres of some of China's best agricultural land, including the ownership rights to 19,000 acres."
SOURCE: Deyu Agriculture Release