SAN DIEGO, Calif. -- US Farms Inc. has received favorable results from a feasibility study conducted on its proposed dry-mill fuel ethanol production facility in southern California.



The report was conducted by BBI International, a Salida, Colo.-based independent Biofuels service firm.



The study found that the proposed facility in the Imperial Valley located in Southern California combines the advantages of a large local ethanol market with an ethanol selling price above the national average with the opportunity to sell distillers grains into a local cattle feed market. Distiller's grains is a coproduct of the ethanol production process.



The proposed plant site is situated well in terms of ethanol and coproduct markets, transportation networks, utilities, labor pools and community services, the study found. Local market opportunities are significant and should be capable of absorbing the entire production of the proposed plant.



"We are pleased with the favorable results of the ethanol feasibility study," said Yan K. Skwara, president of US Farms, Inc. "The project would enhance economic development by becoming a value-added processor of agricultural products and providing jobs in the region."



US Farms' next steps include securing permitting specialists, establishing Ethanol and distiller's grains marketing relationships, developing a grain procurement plan and a risk management strategy for the operation of the plant.

US Farms Inc. is a diversified agriculture company. The company has commenced the production and distribution of horticultural products through a number of subsidiaries. The horticultural products are sold through supermarkets, home centers, retail merchandisers, garden centers, re-wholesalers, and landscapers throughout the United States and Canada. Through internal growth and strategic acquisitions the company is expanding its market share in its nursery and specialty produce businesses. Currently the company has subsidiaries which provide a full range of products including Aloe Vera, Cactus, Succulents, Jade, Rare and Exotic Palm Trees and Cycads along with produce products that include Aloe Vera, Asparagus, Tomatoes and Wheat grass. In 2007 the company plans to add over 100 specialty niche produce items to it offerings.
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SOURCE: US Farms, Inc. via Market Wire.