China Organic Agriculture, Inc. (OTCBB: CNOA), a growth-driven agricultural products company leading China's organic foods revolution, announced today that the Company, has entered into a three month sales agreement with Beijing Jingu Hengfa Trading Company, with a value equivalent to $4.3 million.
Beijing Jingu Hengfa is a well respected rice distributor in the Beijing region. China Organic engages in the production and sale of mid to upscale organic and green rice. Jingu Hengfa will be selling organic rice supplied by China Organic which will be packed in cases of six vacuum bags, with each bag weighing up to six kilograms. Jingu Hengfa will sell 1,760 tons of rice valued at $4.3 million over a three month period.
Changqing Xu, CEO of China Organic Agriculture said, “Our rice fields are in a location highly suitable for the growth of organic and green rice, and our close working arrangements with the local farmers serve as an advantage for the Company. With its well established base in the cultivation and processing of organic and green rice, the Company also uses this business core to enhance the development of distribution channels.”
Mr. Xu added “Our goal is to build a national grain market system with a complete business chain which includes grain cultivation, processing, marketing, wholesale, retail, storage, and distribution. This is a new system planned and developed by our Company’s management. The Company decided to choose the high-quality rice production area Wuchang City to implement this new system because the enterprises in this region have well established environmental conditions and food hygiene standards. Thus, the Company can obtain high quality rice supplies at an attractive price and maintain our gross profit rate. We believe the development of our operations will help China Organic take a giant step towards building its own distribution channels as well as profiting from the increase in the price of rice.”
About China Organic Agriculture
China Organic Agriculture is among the largest producers of green and organic rice in China. CNOA controls all aspects of the process from developing seeds to planting, processing, R&D and distribution. The Company has an extensive distribution network, located in the major cities in China.
CNOA has experienced significant growth since its inception in 2002. CNOA has put solid plans in place to markedly expand sales.
The quality of CNOA’s products results in the ability to obtain prices approximately 15% higher than comparable products. CNOA has in excess of 6,260 acres dedicated to the production of green and organic rice. The irrigation system is fed from the Nen River, one of the last unpolluted rivers in China. The Company’s flagship brand, ErMaPao, has won several quality awards, holds the highest organic certification and is one of the most popular brands in the country.