Currently we source our organic forages substantially from Shengmu Forage, which grows, among others, corn and alfalfa in the Ulan Buh desert without using any agricultural chemicals or chemical synthetic fertilizers. Shengmu Forage currently grows organic forages on parcels of land with a total area of approximately 115,000 mu (76.7 square kilometers) in the Ulan Buh desert; by 2020, Shengmu Forage expects to develop a total of approximately 560,000 mu (373.3 square kilometers) of growing fields for organic forages.

Organic feed

Shengmu Forage had developed approximately 115,000 mu of growing fields in the Ulan Buh desert to grow forage crops for our dairy cows. Because of the favorable ecological conditions, climatic advantages and unique desert characteristics of the Ulan Buh desert (see “— Organic Environment” above), Shengmu Forage has grown the forages without using any synthetic pesticides. To protect the organic environment and maintain and enhance the soil conditions in the Ulan Buh desert, Shengmu Forage does not use chemical synthetic fertilizers but organic fertilizers produced from the cow dung generated on our organic dairy farms.