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HotOtc Featured Company: Origin Agritech Limited (SEED) Readies New Phytase Corn Seed Product for $500 Million Animal Feed Phytase Market

When a new product comes along that changes the fundamental nature of society, it is often missed in the first years of its introduction. The early 1980’s saw the introduction of the “mini-computer,” while the turn of the century saw car phones and shoebox sized “portable phones.” Perhaps the world is about to see the blossoming of its next social breakthrough, the seed. As with the computer, the (greatly) altered seed has been around for some time, but gone somewhat unnoticed. Now, as food supplies become an issue, altered seeds may be ready for their close-up and an opportunity for remarkable profit.

Origin Agritech Ltd., an agricultural biotechnology company, works to research, develop, manufacture and market agricultural crop seed. The company and its subsidies work with corn, rice, cotton and canola seeds. Origin Agritech Ltd. operates and markets primarily in China but has a global sales and marketing team. More so then many other biotechnology companies, Origin Agritech places much of its research and development emphasis on historical germplasm so that it can take into account the regional and cultural likes/dislikes of customers and seed varieties.

The company places great emphasis on it long lineage of germplasm and how it benefits its customers. This especially impacts the company’s rice and corn operations in a marketplace that is currently experiencing hording and supply issues. The company’s emphasis on historical germplasm helps to ensure reliable yields in uncertain weather situations along with certain benefits when natural food issues are raised.

Although agricultural seed companies in China have had to deal with certain governmental issues in 2007, the company expects its Phytase corn products to boost revenue significantly in 2008. These products are mainly used as feed supplements in Asia and Europe with an estimated market of U.S. $500 million. Within China alone, the market for Phytase is estimated at $200 million. The company currently has a far reaching sales and distribution network within China and abroad, keeping it at pace with agricultural seed developers.

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