China Green Agriculture, Inc. Announces Sales Strategy for 2010-2012

XI'AN, China, Oct. 20 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (NYSE Amex: CGA; "China Green Agriculture" or "the Company"), a leading producer and distributor of humic acid ("HA") based compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., today announced its sales strategy for fiscal years 2010 through 2012.

China Green Agriculture recently adopted a sales strategy to significantly increase brand awareness of its "Jinong" fertilizer products among millions of farmers throughout China, with the goal of incorporating "Jinong" quality products and services into the farmers' daily life, while intensifying a distinguished, highly regarded national brand by 2012. The Company has already begun implementing specific marketing tactics through existing distributors in China which are aimed at improving its product messaging.

In an effort to reach its goal of full production capacity utilization during the next three years, the Company intends to focus its marketing efforts on the quality image of "Jinong" through its distributors as well as retail stores which carry the products. This includes prominent displays of "China Green Agriculture Authorized Distributor (or Retailer)" on exhibits, well-positioned standardized shelf and product displays in the retail shops supported by educational materials on proper product use, and the placement of branded commercial ads on delivery trucks in addition to billboard ads which target farmers with the product logo and tagline.

As an extension of this growth strategy, the Company plans to increase both top-line growth and gross margins by opening directly-owned retail stores, which will offer the "Jinong" organic compound fertilizer products directly to farmers and other end users. The pilot program is expected to be launched in January 2010 at which time further details, including the number and store locations, will be provided. The success of the program will be evaluated by measuring specific performance targets taken during a six-month time frame, which includes, but is not limited to, total sales volume generated, profitability, days sales outstanding (DSO), Return on Investment (ROI) and brand awareness. The chain stores will be strategically located in various cities with highly visible storefronts displaying the China Green Agriculture brand name. Each store will have an assigned territory and will not compete with any of the Company's existing 530 distributors or any future distributors.

China Green Agriculture expects to increase sales volume by at least 40% per annum over the next three fiscal years due to anticipated strong sales in the Company's organic compound fertilizer products and its recent increase in total production capacity from 15,000 metric tons to 55,000 metric tons. Management expects that revenue contributions from Company-owned retail stores should enable future margin improvements.

"Following the recent success in expanding our production capacity, we expect robust sales of our branded organic fertilizer products through new product offerings, strong after sales support and tailored marketing and brand-building efforts," stated Mr. Tao Li, Chairman and CEO of China Green Agriculture. "We are pleased to announce these initiatives as we leverage our existing distribution network to employ an aggressive marketing program to build further brand awareness and drive incremental sales and profitability. We are already experiencing positive initial results and believe the newly implemented sales strategy will further differentiate ourselves in this fragmented market and enable us to become one of the leading Chinese fertilizer producers within the next three to five years."

About China Green Agriculture, Inc.

China Green Agriculture, Inc. produces and distributes humic acid ("HA") based compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., ("Jinong"). Jinong produces and sells over 130 different kinds of fertilizer products per year. All of Jinong's fertilizer products are certified by the PRC government as green food production materials, as stated by the China Green Food Research Center. Jinong's fertilizers are highly concentrated liquids which require an application of approximately 120 ml per mu per application. Its average end user has approximately four mu of land (one mu = .165 acres). Jinong also has the capacity to produce highly concentrated powdered fertilizers. China Green Agriculture currently markets its fertilizer products to private wholesalers and retailers of agricultural farm products in 21 provinces, 4 autonomous regions and 3 municipal cities in the PRC. The leading five provinces which collectively accounted for 36.4% of the Company's fertilizer revenue for the year ended June 30, 2009 are Shandong (9.5%), Shaanxi (8.3%), Heilongjiang (6.5%), Xinjiang (6.5%) and Anhui (5.9%). For more information, visit http://www.cgagri.com .

Safe Harbor Statement

This press release contains forward-looking statements concerning the Company's business, products and financial results. The Company's actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, the impact of competitive products or pricing, changes in technology, additional financing requirements, development of new products, government approval processes, technological changes, and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Safe Harbor Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. China Green Agriculture undertakes no duty to revise or update any forward- looking statements to reflect events or circumstances after the date of this release.

    For more information, please contact:

    In the US:
    China Green Agriculture, Inc.
     Ms. Ying Yang, Chief Financial Officer
     Tel:   +1-626-623-2575
     Email: yangying@cgagri.com

    OR

    HC International, Inc.
     Ted Haberfield, Executive VP
     Tel:   +1-760-755-2716
     Email: thaberfield@hcinternational.net

    In China:

    China Green Agriculture, Inc.
     Mr. Jonnie Wang, Secretary of Board, Investor Relations Officer
     Tel:   +86-29-8826-6368
     Email: wangxilong@cgagri.com

SOURCE China Green Agriculture, Inc.