China Organic Agriculture, Inc. engages in the acquisition, trading, and distribution of agricultural products, such as corn, soybean and rice, acquired from third parties, which are then sold mainly to five regions in China, including Beijing, Shanghai, Zhejiang, Guangdong, and Liaoning. The company has entered a joint venture with China-based Xinbin Manchu Autonomy County East Star Wine Company Ltd. (Xinbin). The joint venture, Bellisimo Ice Wine, is intended to enable the company to market premium table wines and specialty ice wines in China. The company owns 60% (for $10.6 million in an all cash transaction dated October 31, 2008.) of Bellisimo Ice Wine. Grain Purchasing, Distribution, and Logistic Services The company owns interest in Dalian Baoshui District Huiming Industry Limited (Dalian Huiming), which engages in grain purchasing, international and domestic trading, wholesale sales, and food delivery logistic services. Dalian Huiming’s activities are primarily focused on soybeans, corns and cereal crops, which are major products of the provinces located in northeastern China. Majority of Dalian Huiming's sales are to other distributors or industrial users of agricultural products and it distributes its products in many regions of China, including Liaoning Province, Jiling Province, Heilongjiang Province, Sichuan Province, Fujian Province, and the cities of Beijing and Shanghai. Acquisitions In March 2010, the company completed the acquisition of 60% of the capital stock of Changbai Eco-Beverage Co., Ltd. (Changbai), which produces various products from blueberries grown in the Mountain Changbai region of northeast China, including blueberry wines, blueberry beverages, blueberry food products, such as jam, jelly, preserves and cakes, and blueberry healthcare products. Changbai also produces honey and other products from locally grown herbs and fruits. Customers The company's customers include Shenzhen Shen Jing Da Agriculture Ltd.; Beijing Golden Valley Trading Co. Ltd.; Dashiqiao Huan Cheng Oil Co. Ltd.; Chian Xinliang Logistics Co. Ltd.; and Shanghai Good Friend Trading Group, Co. Ltd. Suppliers The company's main suppliers include Jiling Shen Kang Long Rice Co. Ltd; Wuchang Yangxing Rice Co. Ltd; Heihe Aihui Grain Storage Co. Ltd; Heilongjiang Linkou Diaoling Grain Storage Co. Ltd; and Heilongjiang BaoQuanLin Grain Transportation Co. Ltd. Competition The company competes with China Grain Co. Ltd.
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