Farmmi Subsidiary in Final Phase of Technical Transformation Project; Expected to Increase Production Capacity by 20%
LISHUI,China,March 12,2020 -- Farmmi,Inc. ("Farmmi" or the "Company") (NASDAQ: FAMI),an agriculture products supplier in China,today announced Zhejiang Forest Food Co.,Ltd. ("Forest Food"),a subsidiary,is in the final phase of a technical transformation project designed to increase manufacturing efficiencies,overall capacity and the ability to meet growing demand for Shiitake mushrooms,Mu Er mushrooms,other edible fungi,and sought-after agricultural products. Upon completion,the technical transformation project is expected to increase production capacity by 20%.
Forest Food commenced the comprehensive technology transformation project in July 2019 in an effort to expand capacity and manufacturing efficiencies. The initial phase involved a thorough evaluation of the Company's existing footprint,expansion strategy,R&D pipeline and requirements to meet growing demand levels. Following the review,the Company implemented a strategy to upgrade and transform its working environment,including the warehousing of raw materials,processing and handling of semi-finished goods,finished product inspection,drying,packaging and warehousing,and hardware facilities. The Company has already completed the environmental transformation,equipment selection and procurement,installation and commissioning of equipment and facilities.
As part of the final phase of the technology transformation project,the Company is submitting certification applications for Hazard Analysis Critical Control Point ("HACCP") and BRC Global Standard for Food Safety.,standards for food safety. After the certifications are granted,the Company will be able to fully utilize its expanded production capacity.
Ms. Yefang Zhang,Farmmi's Chairwoman and CEO,commented,"The impressive technology transformation project has been a major effort for our subsidiary,Zhejiang Forest Food Co.,Ltd.,as we seek to enhance the customer experience and execute on our growth strategy. By increasing production capacity by a targeted 20% and expanding our overall efficiencies from raw material intake to quality control and final shipment,we will be able to better meet increasing demand in a cost effective way,while maintaining strict oversight on our capital expenditures. At the same time,we have greatly improved the working environment for our employees."
About Farmmi,Inc.
Headquartered in Lishui,Zhejiang,Farmmi,Inc. (NASDAQ: FAMI),is a leading agricultural products supplier,processor and retailer of Shiitake mushrooms,and many other sought-after agricultural products. The Company's Farmmi Liangpin Market serves as a global trading platform for Chinese geographical indication agricultural products and is one of the largest platforms for consumers to access locally sourced agricultural products. For further information about the Company,please visit: http://ir.farmmi.com.cn/.
Forward-Looking Statements
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements,including the potential impact of the Coronavirus on our business within and outside of China. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition,results of operations,business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances,or changes in its expectations,except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable,it cannot assure you that such expectations will turn out to be correct,and the Company cautions investors that actual results may differ materially from the anticipated results.
