China Growth Stocks

[CSykes]

Keep in mind, they don't exactly compete with the other dairy companies on the same level. They are one of the only certified "Organic" dairy producers in China. In other words, they provide a niche product to the more middle and upper class in China.

The Company's entire operation is based on the "organic" model. Therefore their products cost more, and are marketed to a more niche market. That is one reason why their dairy sales did not fall as much as the rest of the dairy market during the tainted milk scandal.

The Government interest is in the fertilizer and fishery technologies. The dairy actually is a separate operation entirely. They have exclusive rights in China to a RAS (fishery) technology brought over from Australia.

http://www.aces.edu/dept/fisheries/education/recirculatingaquaculture.php

To be honest, aside from the Dairy operation, the company is really a technology based company that uses it's patents and exclusive rights to conduct JV's with the China government. In essence, they are bringing western technology into China, managing it and deploying it, with the assistance of the Government.