Agria Corporation (NYSE: GRO) (the "Company" or "Agria"), an international agricultural company with operations in China, South America, New Zealand and Australia, today announced that it has entered an agreement to establish the China National (Yangling) Plant Variety Rights Trading Center (the “Center”). The Center will be an institution sponsored by the PRC Ministry of Agriculture (the “MoA”) in order to promote research and commerce in crop plant varieties that can thrive in the vast regions of dry land in China.
Agria’s subsidiary, Shenzhen Zhongguan Agriculture Group Co., Ltd., intends to participate as one of five members of the Center’s governing council (the “Council”). The principal responsibilities of the Council will be to provide the Center with guidance on macro-economic policy, offer advice on how to promote the Center throughout the agriculture industry in China, recommend experts to form an advisory committee, provide guidance on technical operational issues, and advise the Center on development plans and management performance evaluations.
The other parties expected to constitute the Council are the Development Center of Science and Technology of the MoA, China’s Administrative Authority for Yangling Agricultural High-Tech Industries Demonstration Zone, China Northwest Agriculture & Forestry University, and China National Seed Group Co., Ltd.
Shenzhen Zhongguan Agriculture Group Co., Ltd. will hold a 12.5% ownership stake in the Center, and will share in that proportion in any future economic benefits, such as dividends paid. The other stakeholders are Yangling National Agricultural Technology Transfer Center (an affiliated institution under China's Administrative Authority for Yangling Agricultural High-Tech Industries Demonstration Zone) and China National Seed Group Co., Ltd.
Mr. Alan Lai, Executive Chairman of Agria commented, “We are honored to be a founding member of the governing Council of the China National (Yangling) Plant Variety Rights Trading Center. The work of the Center will be critical to expanding agricultural opportunities in the vast regions of dry land in China, and to further develop a robust agricultural industry in China. We appreciate the recognition from the Chinese government of our strategic position in Chinese agriculture, and our ability to offer unrivaled expertise to this effort. We look forward to much success in the years ahead, as we work with our elite Council partners to achieve the goals of the Center.”
