Dongfang Modern Agriculture Company
Sydney, Aug 20, 2015 AEST (ABN Newswire) - AUDIO: Interview with Barry Dawes, Lead Manager for Dongfang Modern Agriculture Company IPO. In this interview with Tim Mckinnon (ABN Newswire) the Australian listing of Dongfang Modern Agriculture is discussed and the valuation of Chinese companies generally as they enter the Australian market via an Initial Public Offer (IPO) on the Australian Stock Exchange.
Dongfang Modern's growth has come on the back of two key trends: firstly, the growing personal income levels and the rising living standards in China are improving the diets of the population by increasing the quality and range of foodstuffs available for consumption. Secondly, consumption of fruit is growing at the expense of grains as diets become more health and nutrition conscious. Accordingly, the consumption of tangerines, pomelos and navel oranges in China has been on the rise.
The company harvests its products from 19 plantations spanning some 8000 hectares, all located within China's premier fruit growing region, the Jiangxi Province. Applying modern cultivation, tree husbandry and harvest distribution, the company has grown produce output from just 75,000 tonnes in 2012 to over 200,000 tonnes in 2014.
Dongfang Modern cultivates and sells multiple products including tangerines (mandarins), pomelos, navel oranges and camellia seed products. The company sells these products primarily to wholesale customers for deliveryto tier-1 cities throughout China.
The income and VAT tax exempt status of agricultural food production, initiated in 2008 to offset the production shortages caused through the rapid drain of farmers to the urban centres of China, has enabled to company to reinvest almost all its earnings (in excess of RMB560 million/ A$100 million) from 2012 in grow initiatives.
With established logistical channels and the experience and expertise to apply modern cultivation processes to traditional plantations, the company is well positioned to take advantage of the incredibly fragmented nature of the citrus and camellia industry in China, and continue to grow its business.
To listen to the interview, please visit:
http://www.abnnewswire.net/press/en/80717/dongfang
About Dongfang Modern Agriculture Company
Established in 2005, Dongfang Modern Agriculture Holding Group Limited has since grown to become the second largest harvester of citrus and camellia products in the world's largest agricultural market, China.
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