China Agriculture View

China Organic Agriculture, a company headquartered in the Liaoning province in China engaged in the trading and distribution of agricultural products, has entered into an agreement to acquire 60% of the stock of Changbai Eco-Beverage for RMB70m or $10.25m. The closing is expected in March of 2010.

Changbai is a producer and distributor of blueberry product, located in Jilin Province of China. Changbai produces around one hundred blueberry related products, including soft drinks, health care products and honey mixed products.

Changbai currently distributes its products within three provinces in northeastern China and plans to expand into other regions over the next two years. The company said that upon completion of this acquisition, it will utilize China Organic Agriculture’s countrywide sales network, and is expected that as a result of this acquisition, it will be able to expand its market more rapidly than originally anticipated, thus increasing both its brand awareness across China and its revenues.

Li Jinsong, CEO of China Organic Agriculture’s, said: “We believe that the opportunities in the blueberry industry are enormous as blueberry based products will become increasingly in demand in China with the growing interest in healthy food alternatives.

“Now that we have an agreement, assuming the satisfactory conclusion of our financial and legal due diligence, and receipt of all necessary government approvals, China Organic Agriculture’s distribution network and broader-based relationships will enable Changbai to expand its business and more quickly penetrate this growing market with this promising beverage and product group.”