| x | Quarterly report pursuant Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|--------------------------------------------------------------------------------------|

|  ̈ | Transition report pursuant Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|--------|---------------------------------------------------------------------------------------|

| Nevada                                                        |   | 20-2597168                           |
|---------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporationor organization) |   | (I.R.S. Employer Identification No.) |

| 100 Bluegrass Commons Blvd.Suite 310Hendersonville, Tennessee |   | 37075      |
|---------------------------------------------------------------|--------|------------|
| (Address of principal executive offices)                      |   | (Zip Code) |

----

| Large accelerated filer  ̈                | Accelerated filer x              |
|-----------------------------------------------|----------------------------------|
| Non-accelerated filer  ̈                  | Smaller reporting company  ̈ |
| (Do not check if a smaller reporting company) |                             |

----

| PART I – FINANCIAL INFORMATION |                                                                                        | 3      |
|--------------------------------------|---------------------------------------------------------------------------------------------|--------|
| Item 1.                              | Financial Statements                                                                        |   | 3 |
| Item 2.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 21 |
| Item 3.                              | Quantitative and Qualitative Disclosures About Market Risk                                  |   | 35 |
| Item 4.                              | Controls and Procedures                                                                     |   | 35 |
| Part II.                             | OTHER INFORMATION                                                                           |   | 35 |
| Item 1.                              | Legal Proceedings                                                                           |   | 35 |
| Item 1A.                             | Risk Factors                                                                                |   | 35 |
| Item 2.                              | Unregistered Sales of Equity Securities and Use of Proceeds                                 |   | 36 |
| Item 3.                              | Defaults Upon Senior Securities                                                             |   | 36 |
| Item 4.                              | (Removed and Reserved)                                                                      |   | 36 |
| Item 5.                              | Other Information                                                                           |   | 36 |
| Item 6.                              | Exhibits                                                                                    |   | 36 |
| SIGNATURES                           |                                                                                        | 37     |

----

|                                                                                                                                                                                           |   | 2011        |        |   | 2010   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-------------|--------|--------|--------|
|                                                                                                                                                                                           |   | (unaudited) |        |   |   |   |
| ASSETS                                                                                                                                                                                         |   |        |        |   |   |   |
|                                                                                                                                                                                           |   |        |        |   |   |   |
| CURRENT ASSETS:                                                                                                                                                                                |   |        |        |   |   |   |
| Cash and cash equivalents                                                                                                                                                                      |   | $           | 9,199,596   |   |   | $      | 12,399,916 |   |
| Accounts receivable, net of allowance for doubtful accounts of $1,930,100 and $707,968                                                                                                         |   |        | 28,672,187  |   |   |   | 21,841,442 |   |
| Advances to suppliers                                                                                                                                                                          |   |        | 517,064     |   |   |   | 1,676,593 |   |
| Inventory                                                                                                                                                                                      |   |        | 85,741,183  |   |   |   | 81,379,649 |   |
| Prepaid expenses and other current assets                                                                                                                                                      |   |        | 2,454,312   |   |   |   | 2,242,807 |   |
| Deferred tax asset                                                                                                                                                                             |   |        | 83,685      |   |   |   | 83,685 |   |
| Assets of discontinued operations                                                                                                                                                              |   |        | 3,870,799   |   |   |   | 6,293,524 |   |
|                                                                                                                                                                                           |   |        |        |   |   |   |   |   |
| Total current assets                                                                                                                                                                           |   |        | 130,538,826 |   |   |   | 125,917,616 |   |
|                                                                                                                                                                                           |   |        |        |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, net                                                                                                                                                                    |   |        | 67,101,166  |   |   |   | 63,631,224 |   |
| INTANGIBLE ASSETS, net                                                                                                                                                                         |   |        | 5,678,896   |   |   |   | 5,783,102 |   |
| GOODWILL                                                                                                                                                                                       |   |        | 22,510,697  |   |   |   | 22,365,414 |   |
| DEFERRED TAX ASSET                                                                                                                                                                             |   |        | 1,925,663   |   |   |   | 2,329,548 |   |
| OTHER ASSETS                                                                                                                                                                                   |   |        | 2,738,813   |   |   |   | 3,467,758 |   |
|                                                                                                                                                                                           |   |        |        |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                                                                                   |   | $           | 230,494,061 |   |   | $      | 223,494,662 |   |
|                                                                                                                                                                                           |   |        |        |   |   |   |   |   |
| LIABILITIES AND EQUITY                                                                                                                                                                         |   |        |        |   |   |   |   |   |
|                                                                                                                                                                                           |   |        |        |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                           |   |        |        |   |   |   |   |   |
| Short-term loan                                                                                                                                                                                |   | $           | 4,581,000   |   |   | $      | 4,551,000 |   |
| Accounts payable                                                                                                                                                                               |   |        | 8,737,927   |   |   |   | 8,783,569 |   |
| Other payables                                                                                                                                                                                 |   |        | 2,554,637   |   |   |   | 3,736,931 |   |
| Unearned revenue                                                                                                                                                                               |   |        | 92,111      |   |   |   | 489,241 |   |
| Accrued expenses                                                                                                                                                                               |   |        | 8,154,401   |   |   |   | 6,142,747 |   |
| Accrued payroll                                                                                                                                                                                |   |        | 941,958     |   |   |   | 1,163,504 |   |
| Tax and welfare payable                                                                                                                                                                        |   |        | 892,298     |   |   |   | 1,893,727 |   |
| Interest payable                                                                                                                                                                               |   |        | 192,429     |   |   |   | 121,392 |   |
| Current portion of long-term debt                                                                                                                                                              |   |        | 1,710,350   |   |   |   | 1,703,658 |   |
| Convertible notes, net of discount of $10,864                                                                                                                                                  |   |        | -           |   |   |   | 989,136 |   |
| Liabilities of discontinued operations                                                                                                                                                         |   |        | 1,402,237   |   |   |   | 1,595,805 |   |
|                                                                                                                                                                                           |   |        |        |   |   |   |   |   |
| Total current liabilities                                                                                                                                                                      |   |        | 29,259,348  |   |   |   | 31,170,710 |   |
|                                                                                                                                                                                           |   |        |        |   |   |   |   |   |
| ACQUISITION NOTE PAYABLE                                                                                                                                                                       |   |        | 9,621,434   |   |   |   | 9,621,434 |   |
| LINE OF CREDIT                                                                                                                                                                                 |   |        | 44,775,792  |   |   |   | 42,231,176 |   |
| LONG-TERM DEBT                                                                                                                                                                                 |   |        | 14,286,195  |   |   |   | 15,024,666 |   |
|                                                                                                                                                                                           |   |        |        |   |   |   |   |   |
| TOTAL LIABILITIES                                                                                                                                                                              |   |        | 97,942,769  |   |   |   | 98,047,986 |   |
|                                                                                                                                                                                           |   |        |        |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES (Note 11)                                                                                                                                                        |   |        | -           |   |   |   | - |   |
|                                                                                                                                                                                           |   |        |        |   |   |   |   |   |
| EQUITY:                                                                                                                                                                                        |   |        |        |   |   |   |   |   |
| AgFeed stockholders' equity:                                                                                                                                                                   |   |        |        |   |   |   |   |   |
| Common stock, $0.001 per share; 75,000,000 shares authorized; 56,189,050 issued and 55,802,355 outstanding at March 31, 2011 51,756,907 issued and 51,370,212 outstanding at December 31, 2010 |   |        | 56,190      |   |   |   | 51,758 |   |
| Additional paid-in capital                                                                                                                                                                     |   |        | 133,724,749 |   |   |   | 125,788,151 |   |
| Accumulated other comprehensive income                                                                                                                                                         |   |        | 8,897,086   |   |   |   | 8,120,628 |   |
| Statutory reserve                                                                                                                                                                              |   |        | 5,667,043   |   |   |   | 5,621,937 |   |
| Treasury stock (386,695 shares)                                                                                                                                                                |   |        | (1,858,942  | )      |   |   | (1,858,942 | ) |
| Accumulated deficit                                                                                                                                                                            |   |        | (14,026,159 | )      |   |   | (12,430,229 | ) |
| Total AgFeed stockholders' equity                                                                                                                                                              |   |        | 132,459,967 |   |   |   | 125,293,303 |   |
| Noncontrolling interest                                                                                                                                                                        |   |        | 91,325      |   |   |   | 153,373 |   |
| Total equity                                                                                                                                                                                   |   |        | 132,551,292 |   |   |   | 125,446,676 |   |
|                                                                                                                                                                                           |   |        |        |   |   |   |   |   |
| TOTAL LIABILITIES AND EQUITY                                                                                                                                                                   |   | $           | 230,494,061 |   |   | $      | 223,494,662 |   |

----

|                                                                                        |   | 2011        |       |   | 2010        |   |
|---------------------------------------------------------------------------------------------|--------|-------------|------------|--------|-------------|--------|
|                                                                                        |   | (unaudited) |       |   | (unaudited) |   |
|                                                                                        |   |        |       |   |        |   |
| Revenues                                                                                    |   | $           | 92,987,199 |   |        | $      | 46,489,856 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Cost of goods sold                                                                          |   |        | 85,107,097 |   |        |   | 40,617,819 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Gross profit                                                                                |   |        | 7,880,102  |   |        |   | 5,872,037 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Operating expenses                                                                          |   |        |       |   |        |   |   |   |
| Selling expenses                                                                            |   |        | 986,663    |   |        |   | 1,018,164 |   |
| General and administrative expenses                                                         |   |        | 6,375,431  |   |        |   | 3,443,171 |   |
| Total operating expenses                                                                    |   |        | 7,362,094  |   |        |   | 4,461,335 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Income from operations                                                                      |   |        | 518,008    |   |        |   | 1,410,702 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Non-operating income (expense):                                                             |   |        |       |   |        |   |   |   |
| Other income (expense)                                                                      |   |        | (2,716     | )      |        |   | 75,158 |   |
| Interest income                                                                             |   |        | 14,722     |   |        |   | 47,333 |   |
| Interest and financing costs                                                                |   |        | (914,959   | )      |        |   | (124,911 | ) |
| Foreign currency transaction loss                                                           |   |        | (10,128    | )      |        |   | 13,803 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Total non-operating income (expense)                                                        |   |        | (913,081   | )      |        |   | 11,383 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Income (loss) from operations before income taxes                                           |   |        | (395,073   | )      |        |   | 1,422,085 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Income tax expense                                                                          |   |        | 538,739    |   |        |   | 453,580 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Loss from continuing operations                                                             |   |        | (933,812   | )      |        |   | 968,505 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Discontinued operations:                                                                    |   |        |       |   |        |   |   |   |
| Income (loss) from discontinued operations (including loss on disposal of $295,280 in 2011) |   |        | (681,045   | )      |        |   | 42,719 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Net loss                                                                                    |   |        | (1,614,857 | )      |        |   | 1,011,224 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Less: Net income (loss) attributed to noncontrolling interest                               |   |        | (64,033    | )      |        |   | (56,194 | ) |
|                                                                                        |   |        |       |   |        |   |   |   |
| Net income attributed to AgFeed                                                             |   | $           | (1,550,824 | )      |        | $      | 1,067,418 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Comprehensive income (loss)                                                                 |   |        |       |   |        |   |   |   |
| Net income (loss)                                                                           |   | $           | (1,614,857 | )      |        | $      | 1,011,224 |   |
| Foreign currency translation gain                                                           |   |        | 778,443    |   |        |   | 764 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Comprehensive income (loss)                                                                 |   | $           | (836,414   | )      |        | $      | 1,011,988 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Weighted average shares outstanding :                                                       |   |        |       |   |        |   |   |   |
| Basic                                                                                       |   |        | 53,388,412 |   |        |   | 44,869,485 |   |
| Diluted                                                                                     |   |        | 53,388,412 |   |        |   | 45,213,024 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Basic earnings (loss) per share attributed to AgFeed common stockholders:                   |   |        |       |   |        |   |   |   |
| Continuing operations                                                                       |   | $           | (0.02      | )      |        | $      | 0.02 |   |
| Discontinued operations                                                                     |   |        | (0.01      | )      |        | $      | 0.00 |   |
|                                                                                        |   | $           | (0.03      | )      |        | $      | 0.02 |   |
|                                                                                        |   |        |       |   |        |   |   |   |
| Diluted earnings (loss) per share attributed to AgFeed common stockholders:                 |   |        |       |   |        |   |   |   |
| Continuing operations                                                                       |   | $           | (0.02      | )      |        | $      | 0.02 |   |
| Discontinued operations                                                                     |   |        | (0.01      | )      |        | $      | 0.00 |   |
|                                                                                        |   | $           | (0.03      | )      |        | $      | 0.02 |   |

----

|                                                                                 |   | 2011        |       |   | 2010        |   |
|--------------------------------------------------------------------------------------|--------|-------------|------------|--------|-------------|--------|
|                                                                                 |   | (unaudited) |       |   | (unaudited) |   |
|                                                                                 |   |        |       |   |        |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                |   |        |       |   |        |   |
| Net income (loss)                                                                    |   | $           | (1,614,857 | )      |        | $      | 1,011,224 |   |
| Adjustments to reconcile net income (loss) to net cash used in operating activities: |   |        |       |   |        |   |   |   |
| Depreciation                                                                         |   |        | 1,498,562  |   |        |   | 811,899 |   |
| Amortization of intangible assets                                                    |   |        | 111,629    |   |        |   | 23,191 |   |
| Loss on sale of assets                                                               |   |        | 543,552    |   |        |   | - |   |
| Stock based compensation                                                             |   |        | 7,235      |   |        |   | 75,281 |   |
| Issuance of common stock for services                                                |   |        | 433,795    |   |        |   | 375,720 |   |
| Amortization of debt issuance costs                                                  |   |        | 4,617      |   |        |   | 7,419 |   |
| Amortization of discount on convertible debt                                         |   |        | 10,864     |   |        |   | 17,460 |   |
| Change in working capital components                                                 |   |        |       |   |        |   |   |   |
| Accounts receivable                                                                  |   |        | (6,647,112 | )      |        |   | (8,599,242 | ) |
| Other receivables                                                                    |   |        | -          |   |        |   | (2,466,242 | ) |
| Inventory                                                                            |   |        | (1,987,357 | )      |        |   | (1,813,472 | ) |
| Advances to suppliers                                                                |   |        | 1,194,764  |   |        |   | 360,605 |   |
| Prepaid expenses                                                                     |   |        | 511,397    |   |        |   | 350,014 |   |
| Deferred taxes                                                                       |   |        | 403,885    |   |        |   | - |   |
| Other assets                                                                         |   |        | 1,118,963  |   |        |   | (73,782 | ) |
| Accounts payable                                                                     |   |        | (246,537   | )      |        |   | 3,906,822 |   |
| Other payables                                                                       |   |        | (1,431,148 | )      |        |   | 2,142,963 |   |
| Unearned revenue                                                                     |   |        | (461,805   | )      |        |   | (166,837 | ) |
| Accrued expenses                                                                     |   |        | 2,010,388  |   |        |   | (12,304 | ) |
| Accrued payroll                                                                      |   |        | (225,979   | )      |        |   | (326,087 | ) |
| Tax and welfare payable                                                              |   |        | (1,001,190 | )      |        |   | 213,894 |   |
| Interest payable                                                                     |   |        | 71,037     |   |        |   | 17,500 |   |
|                                                                                 |   |        |       |   |        |   |   |   |
| Net cash provided by (used in) operating activities                                  |   |        | (5,695,297 | )      |        |   | (4,143,974 | ) |
|                                                                                 |   |        |       |   |        |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                |   |        |       |   |        |   |   |   |
| Purchase of property and equipment                                                   |   |        | (6,208,508 | )      |        |   | (4,282,474 | ) |
| Purchase of intangible assets                                                        |   |        | -          |   |        |   | (125,514 | ) |
| Proceeds from sale of assets                                                         |   |        | 315,114    |   |        |   | - |   |
|                                                                                 |   |        |       |   |        |   |   |   |
| Net cash used in investing activities                                                |   |        | (5,893,394 | )      |        |   | (4,407,988 | ) |
|                                                                                 |   |        |       |   |        |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                |   |        |       |   |        |   |   |   |
| Proceeds from the sale of common stock                                               |   |        | 7,500,000  |   |        |   | - |   |
| Borrowings under line of credit facility, net                                        |   |        | 2,544,616  |   |        |   | - |   |
| Payment on convertible notes                                                         |   |        | (1,000,000 | )      |        |   | - |   |
| Payment on note payable                                                              |   |        | (731,779   | )      |        |   | - |   |
| Purchase of noncontrolling interest in majority owed hog farms                       |   |        | -          |   |        |   | (406,103 | ) |
|                                                                                 |   |        |       |   |        |   |   |   |
| Net cash provided by (used in) financing activities                                  |   |        | 8,312,837  |   |        |   | (406,103 | ) |
|                                                                                 |   |        |       |   |        |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                         |   |        | 75,534     |   |        |   | (2,062 | ) |
|                                                                                 |   |        |       |   |        |   |   |   |
| NET DECREASE IN CASH & CASH EQUIVALENTS                                          |   |        | (3,200,320 | )      |        |   | (8,960,127 | ) |
|                                                                                 |   |        |       |   |        |   |   |   |
| CASH & CASH EQUIVALENTS, BEGINNING BALANCE                                       |   |        | 12,399,916 |   |        |   | 37,580,154 |   |
|                                                                                 |   |        |       |   |        |   |   |   |
| CASH & CASH EQUIVALENTS, ENDING BALANCE                                          |   | $           | 9,199,596  |   |        | $      | 28,620,027 |   |
|                                                                                 |   |        |       |   |        |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                                    |   |        |       |   |        |   |   |   |
| Interest paid, net of amounts capitalized                                            |   | $           | 993,985    |   |        | $      | 64,969 |   |
| Income taxes paid                                                                    |   | $           | 1,136,283  |   |        | $      | 210,860 |   |

----

----

| Balance, December 31, 2010           |   | $      | 707,968   |   |
|--------------------------------------|--------|--------|-----------|--------|
| Additions                            |   |   | 1,221,952 |   |
| Collections of reserve accounts      |   |   | -         |   |
| Write-offs of uncollectible accounts |   |   | -         |   |
| Balance, March 31, 2011              |   | $      | 1,930,100 |   |

|                        |   | March 31,2011 |       |   | December 31,2010 |   |
|-----------------------------|--------|---------------|------------|--------|------------------|--------|
|                        |   |          |       |   |             |   |
| Raw material                |   | $             | 11,881,015 |   |             | $      | 11,691,635 |   |
| Work in process             |   |          | -          |   |             |   | 160,007 |   |
| Finished goods – feed |   |          | 379,273    |   |             |   | 810,786 |   |
| Hogs                        |   |          | 73,480,895 |   |             |   | 68,717,221 |   |
| Total                       |   | $             | 85,741,183 |   |             | $      | 81,379,649 |   |

----

| Office equipment       | 1 to 5 years            |
|------------------------|-------------------------|
| Operating equipment    |  1 to10 years |
| Vehicles               | 5 years                 |
| Swine for reproduction | 2 to 3.5 years     |
| Buildings              | 20 to 40 years          |

|                          |   | March 31, |       |   | December 31, |   |
|-------------------------------|--------|-----------|------------|--------|--------------|--------|
|                          |   | 2011      |       |   | 2010         |   |
|                          |   |      |       |   |         |   |
| Office equipment              |   | $         | 767,480    |   |         | $      | 983,992 |   |
| Operating equipment           |   |      | 14,259,655 |   |         |   | 13,945,244 |   |
| Vehicles                      |   |      | 846,445    |   |         |   | 994,686 |   |
| Swine for reproduction        |   |      | 15,361,176 |   |         |   | 10,830,812 |   |
| Land                          |   |      | 752,500    |   |         |   | 752,500 |   |
| Buildings                     |   |      | 26,536,641 |   |         |   | 29,165,246 |   |
| Construction-in-process       |   |      | 14,205,575 |   |         |   | 11,888,319 |   |
| Total                         |   |      | 72,729,472 |   |         |   | 68,560,799 |   |
|                          |   |      |       |   |         |   |   |   |
| Less accumulated depreciation |   |      | (5,628,306 | )      |         |   | (4,929,575 | ) |
|                          |   |      |       |   |         |   |   |   |
|                          |   | $         | 67,101,166 |   |         | $      | 63,631,224 |   |

----

|                          |   | March 31, |      |   | December 31, |   |
|-------------------------------|--------|-----------|-----------|--------|--------------|--------|
|                          |   | 2011      |      |   | 2010         |   |
|                          |   |      |      |   |         |   |
| Right to use land             |   | $         | 786,429   |   |         | $      | 781,278 |   |
| Customer relationships        |   |      | 4,837,668 |   |         |   | 4,835,195 |   |
| Computer software             |   |      | 485,387   |   |         |   | 478,988 |   |
| Total                         |   |      | 6,109,484 |   |         |   | 6,095,461 |   |
|                          |   |      |      |   |         |   |   |   |
| Less Accumulated amortization |   |      | (430,588  | )      |         |   | (312,359 | ) |
|                          |   |      |      |   |         |   |   |   |
| Intangibles, net              |   | $         | 5,678,896 |   |         | $      | 5,783,102 |   |

----

|                              |   | Animal    |      |   | Hog Production |   |       |        |   |
|-----------------------------------|--------|-----------|-----------|--------|----------------|--------|------------|-------------|--------|
|                              |   | Nutrition |      |   | China          |   |       | U.S. (M2P2) |   |   | Total |   |
|                              |   |      |      |   |           |   |       |        |   |   |   |   |
|  Balance, December 31, 2010  |   | $         | 2,437,135 |   |           | $      | 19,602,279 |        |   | $ | 326,000 |   |   | $ | 22,365,414 |   |
|  Foreign currency adjustment |   |      | 16,066    |   |           |   | 129,217    |        |   |   | - |   |   |   | 145,283 |   |
|  Balance, March 31, 2011     |   | $         | 2,453,201 |   |           | $      | 19,731,496 |        |   | $ | 326,000 |   |   | $ | 22,510,697 |   |

----

----

|                                          |   | 2011   |       |   | 2010      |   |
|-----------------------------------------------|--------|--------|------------|--------|-----------|--------|
|                                          |   |   |       |   | Per Share |   |   |   |   |   | Per Share |   |
|                                          |   | Shares |       |   | Amount    |   |   | Shares |   |   | Amount |   |
| Basic earnings per share                 |   |   | 53,388,412 |   |      | $      | (0.02 | ) |   |   | 44,869,485 |   |   | $ | 0.02 |   |
| Effect of dilutive stock options and warrants |   |   | -          |   |      |   | - |   |   |   | 343,539 |   |   |   | - |   |
| Diluted earnings per share                    |   |   | 53,388,412 |   |      | $      | (0.02 | ) |   |   | 45,213,024 |   |   | $ | 0.02 |   |

|   | · | Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

----

|   | · | $980,000 derivative liability consisting of exchange traded commodity futures contracts valued using Level 1 inputs. The fair value measurements are determined by quoted market prices from the Chicago Board of Trade (CBOT). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $1,094,000 derivative asset consisting of fixed price forward purchase contracts valued using Level 2 inputs. The fair value measurements are based on observable data for similar assets as well as quoted market prices from the CBOT. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                      |   | March 31, |      |   | December 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                      |   | 2011      |      |   | 2010         |   |
|                                                                                                                                                                                                                                                                                                                      |   |      |      |   |         |   |
| Short-term bank loan payable to Shanghai Pudong Development Bank.  The loan accrues interest at 5.84%.  The note was renewed in May 2010 and is due May 4, 2011 (The loan was paid off in full subsequent to March 31, 2011).  The loan is collateralized by buildings and land use rights. |   | $         | 4,581,000 |   |         | $      | 4,551,000 |   |

----

|                                                                                                                                                                                                                                                                                                                 |   | 2011   |       |   | 2010   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |   |
| Note payable, bearing interest at the prime rate plus 2% (5.25% at March 31, 2011) and payable on November 25, 2018. The note is secured by the M2P2’s 100% interest in Heritage Farms LLC and is subordinated to certain senior debt.                                                                         |   | $      | 3,500,000  |   |   | $      | 3,500,000 |   |
|                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |   |   |   |
| Senior term loan - $6 million; bears interest at 5.0%; quarterly installments of $250,000 plus interest with remaining balance is due April 1, 2013. (A)                                                                                                                                                             |   |   | 5,250,000  |   |   |   | 5,750,000 |   |
|                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |   |   |   |
| Senior term loan - $7.6 million; $5.8 million of the loan bears interest at 5.0% and the $1.4 million remaining balance bears interest at the 3-month LIBOR plus 1.75% (2.05% at March 31, 2011); payments are due in monthly installments of approximately $85,000. The remaining balance is due March 1, 2020. (A) |   |   | 7,246,545  |   |   |   | 7,478,324 |   |
|                                                                                                                                                                                                                                                                                                                 |   |   | 15,996,545 |   |   |   | 16,728,324 |   |
| Less current portion                                                                                                                                                                                                                                                                                                 |   |   | (1,710,350 | )      |   |   | (1,703,658 | ) |
|                                                                                                                                                                                                                                                                                                                 |   | $      | 14,286,195 |   |   | $      | 15,024,666 |   |

|   | (A) | These borrowings are collateralized by substantially all of the assets of M2P2 and have various restrictive covenants, including, but not limited to, certain restrictions on distributions, maintenance of a minimum net worth and other financial covenant requirements. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | i. | Making up cumulative prior years’ losses, if any; |
|--------|----|---------------------------------------------------------|

|   | ii. | Allocations to the “Statutory surplus reserve” of at least 10% of income after tax, as determined under PRC accounting rules and regulations, until the fund amounts to 50% of the Company’s registered capital; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | Allocations of 5-10% of income after tax, as determined under PRC accounting rules and regulations, to the Company’s “Statutory common welfare fund”, which is established for the purpose of providing employee facilities and other collective benefits to the Company’s employees; and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv. | Allocations to the discretionary surplus reserve, if approved in the stockholders’ general meeting. |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

----

|                           |   | Optionsoutstanding |    |   | WeightedAverageExercisePrice |   |   | Weightedaverageremainingcontractual life |   |   | AggregateIntrinsic Value |   |
|--------------------------------|--------|--------------------|---------|--------|------------------------------|--------|--------|------------------------------------------|--------|--------|--------------------------|--------|
|                           |   |               |    |   |                         |   |   |                                     |   |   |                     |   |
| Outstanding, December 31, 2010 |   |               | 185,000 |   |                         | $      | 8.96   |                                     |   |   | 2.71                     |   |   | $ | - |   |
| Granted                        |   |               | -       |   |                         |   | -      |                                     |   |   |                     |   |   |   |   |   |
| Forfeited                      |   |               | -       |   |                         |   | -      |                                     |   |   |                     |   |   |   |   |   |
| Exercised                      |   |               | -       |   |                         |   | -      |                                     |   |   |                     |   |   |   |   |   |
| Outstanding, March 31, 2011    |   |               | 185,000 |   |                         | $      | 8.96   |                                     |   |   | 2.45                     |   |   | $ | - |   |
|                           |   |               |    |   |                         |   |   |                                     |   |   |                     |   |   |   |   |   |
| Exercisable, March 31, 2011    |   |               | 175,000 |   |                         | $      | 8.94   |                                     |   |   | 2.45                     |   |   | $ | - |   |

| Number ofOptions   |   | Exercise Price |   |
|--------------------|--------|---------------------|--------|
| 10,000             |   | $                   | 3.30   |   |
|   15,000 |   | $                   | 8.85   |   |
| 160,000            |   | $                   | 9.32   |   |
| 185,000            |   |                |   |   |

|                           |   | Warrantsoutstanding |      |   | WeightedAverageExercisePrice |   |   | Weightedaverageremainingcontractual life |   |   | AggregateIntrinsic Value |   |
|--------------------------------|--------|---------------------|-----------|--------|------------------------------|--------|--------|------------------------------------------|--------|--------|--------------------------|--------|
|                           |   |                |      |   |                         |   |   |                                     |   |   |                     |   |
| Outstanding, December 31, 2010 |   |                | 2,204,435 |   |                         | $      | 4.03   |                                     |   |   | 2.42                     |   |   | $ | 253,000 |   |
| Granted                        |   |                | -         |   |                         |   | -      |                                     |   |   |                     |   |   |   |   |   |
| Forfeited/canceled             |   |                | (220,000  | )      |                         | $      | 5.00   |                                     |   |   |                     |   |   |   |   |   |
| Exercised                      |   |                | -         |   |                         |   | -      |                                     |   |   |                     |   |   |   |   |   |
| Outstanding, March 31, 2011    |   |                | 1,984,435 |   |                         | $      | 3.92   |                                     |   |   | 2.43                     |   |   | $ | - |   |
|                           |   |                |      |   |                         |   |   |                                     |   |   |                     |   |   |   |   |   |
| Exercisable, March 31, 2011    |   |                | 1,984,435 |   |                         | $      | 3.92   |                                     |   |   | 2.43                     |   |   | $ | - |   |

| Number ofWarrants |   | Exercise Price |   |
|-------------------|--------|---------------------|--------|
| 575,000           |   | $                   | 2.50   |   |
| 1,409,435         |   | $                   | 4.50   |   |
| 1,984,435         |   |                |   |   |

----

|                             |   | Three Months Ended March 31, |       |
|----------------------------------|--------|------------------------------|------------|
|                             |   | 2011                         |       |   | 2010 |   |
|                             |   |                         |       |   |   |   |
| Revenues from unrelated entities |   |                         |       |   |   |   |
| Animal feed nutrition            |   | $                            | 24,208,671 |   |   | $ | 24,289,749 |   |
| Hog production - United States   |   |                         | 57,884,424 |   |   |   | - |   |
| Hog production - China           |   |                         | 10,894,104 |   |   |   | 22,200,107 |   |
| Western style hog farms          |   |                         | -          |   |   |   | - |   |
| Holding Company                  |   |                         | -          |   |   |   | - |   |
|                             |   | $                            | 92,987,199 |   |   | $ | 46,489,856 |   |
|                             |   |                         |       |   |   |   |   |   |
| Intersegment revenues            |   |                         |       |   |   |   |   |   |
| Animal feed nutrition            |   | $                            | 4,023,299  |   |   | $ | 3,769,922 |   |
| Hog production - United States   |   |                         | -          |   |   |   | - |   |
| Hog production - China           |   |                         | 557,151    |   |   |   | 517,131 |   |
| Western style hog farms          |   |                         | -          |   |   |   | - |   |
| Holding Company                  |   |                         | -          |   |   |   | - |   |
|                             |   | $                            | 4,580,450  |   |   | $ | 4,287,053 |   |
|                             |   |                         |       |   |   |   |   |   |
| Total revenues                   |   |                         |       |   |   |   |   |   |
| Animal feed nutrition            |   | $                            | 28,231,970 |   |   | $ | 28,059,671 |   |
| Hog production - United States   |   |                         | 57,884,424 |   |   |   | - |   |
| Hog production - China           |   |                         | 11,451,255 |   |   |   | 22,717,238 |   |
| Western style hog farms          |   |                         | -          |   |   |   | - |   |
| Holding Company                  |   |                         | -          |   |   |   | - |   |
| Less Intersegment revenues       |   |                         | (4,580,450 | ) |   |   | (4,287,053 | ) |
|                             |   | $                            | 92,987,199 |   |   | $ | 46,489,856 |   |
|                             |   |                         |       |   |   |   |   |   |
| Gross profit                     |   |                         |       |   |   |   |   |   |
| Animal feed nutrition            |   | $                            | 2,426,043  |   |   | $ | 4,464,074 |   |
| Hog production - United States   |   |                         | 4,384,568  |   |   |   | - |   |
| Hog production - China           |   |                         | 1,069,491  |   |   |   | 1,407,963 |   |
| Western style hog farms          |   |                         | -          |   |   |   | - |   |
| Holding Company                  |   |                         | -          |   |   |   | - |   |
|                             |   | $                            | 7,880,102  |   |   | $ | 5,872,037 |   |

----

| Income (loss) from operations  |   |   |       |   |   |   |       |   |
|--------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Animal feed nutrition          |   | $      | (835,496   | )      |   | $      | 2,667,353  |   |
| Hog production - United States |   |   | 3,645,443  |   |   |   |       |   |
| Hog production - China         |   |   | (139,246   | )      |   |   | 12,238     |   |
| Western style hog farms        |   |   | (298,394   | )      |   |   | -          |   |
| Holding Company                |   |   | (1,854,299 | )      |   |   | (1,268,889 | )      |
|                           |   | $      | 518,008    |   |   | $      | 1,410,702  |   |
|                           |   |   |       |   |   |   |       |   |
| Interest income                |   |   |       |   |   |   |       |   |
| Animal feed nutrition          |   | $      | 2,999      |   |   | $      | 33,443     |   |
| Hog production - United States |   |   | -          |   |   |   | -          |   |
| Hog production - China         |   |   | 11,003     |   |   |   | 5,912      |   |
| Western style hog farms        |   |   | -          |   |   |   | -          |   |
| Holding Company                |   |   | 720        |   |   |   | 7,978      |   |
|                           |   | $      | 14,722     |   |   | $      | 47,333     |   |
|                           |   |   |       |   |   |   |       |   |
| Interest and financing costs   |   |   |       |   |   |   |       |   |
| Animal feed nutrition          |   | $      | 70,704     |   |   | $      | 82,532     |   |
| Hog production - United States |   |   | 624,678    |   |   |   | -          |   |
| Hog production - China         |   |   | -          |   |   |   | -          |   |
| Western style hog farms        |   |   | -          |   |   |   | -          |   |
| Holding Company                |   |   | 219,577    |   |   |   | 42,379     |   |
|                           |   | $      | 914,959    |   |   | $      | 124,911    |   |
|                           |   |   |       |   |   |   |       |   |
| Income tax expense (benefit)   |   |   |       |   |   |   |       |   |
| Animal feed nutrition          |   | $      | 134,854    |   |   | $      | 453,580    |   |
| Hog production - United States |   |   | -          |   |   |   | -          |   |
| Hog production - China         |   |   | -          |   |   |   | -          |   |
| Western style hog farms        |   |   | -          |   |   |   | -          |   |
| Holding Company                |   |   | 403,885    |   |   |   | -          |   |
|                           |   | $      | 538,739    |   |   | $      | 453,580    |   |
|                           |   |   |       |   |   |   |       |   |
| Net income (loss)              |   |   |       |   |   |   |       |   |
| Animal feed nutrition          |   | $      | (1,028,763 | )      |   | $      | 2,173,643  |   |
| Hog production - United States |   |   | 3,020,765  |   |   |   | -          |   |
| Hog production - China         |   |   | (88,475    | )      |   |   | 154,346    |   |
| Western style hog farms        |   |   | (291,194   | )      |   |   | -          |   |
| Holding Company                |   |   | (2,482,112 | )      |   |   | (1,303,290 | )      |
| Discontinued operations        |   |   | (681,045   | )      |   |   | 42,719     |   |
|                           |   | $      | (1,550,824 | )      |   | $      | 1,067,418  |   |
|                           |   |   |       |   |   |   |       |   |
| Provision for depreciation     |   |   |       |   |   |   |       |   |
| Animal feed nutrition          |   | $      | 241,731    |   |   | $      | 107,042    |   |
| Hog production - United States |   |   | 491,349    |   |   |   | -          |   |
| Hog production - China         |   |   | 765,482    |   |   |   | 704,857    |   |
|                           |   | $      | 1,498,562  |   |   | $      | 811,899    |   |

----

|                                 |   | As of          |        |   | As of        |   |
|--------------------------------------|--------|----------------|-------------|--------|--------------|--------|
|                                 |   | March 31, |        |   | December 31, |   |
|                                 |   | 2011           |        |   | 2010         |   |
| Total assets                         |   |           |        |   |         |   |
| Animal feed nutrition                |   | $              | 40,355,909  |   |         | $      | 42,783,939 |   |
| Hog production - United States       |   |           | 100,372,669 |   |         |   | 94,369,142 |   |
| Hog production - China               |   |           | 62,701,162  |   |         |   | 58,918,591 |   |
| Western style hog farms              |   |           | 18,750,810  |   |         |   | 15,162,473 |   |
| Holding Company                      |   |           | 4,442,712   |   |         |   | 5,966,993 |   |
| Discontinued operations              |   |           | 3,870,799   |   |         |   | 6,293,524 |   |
|                                 |   | $              | 230,494,061 |   |         | $      | 223,494,662 |   |
|                                 |   |           |        |   |         |   |   |   |
| Goodwill                             |   |           |        |   |         |   |   |   |
| Animal feed nutrition                |   | $              | 2,453,201   |   |         | $      | 2,437,135 |   |
| Hog production - United States       |   |           | 326,000     |   |         |   | 326,000 |   |
| Hog production - China               |   |           | 19,731,496  |   |         |   | 19,602,279 |   |
| Western style hog farms              |   |           | -           |   |         |   | - |   |
| Holding Company                      |   |           | -           |   |         |   | - |   |
|                                 |   | $              | 22,510,697  |   |         | $      | 22,365,414 |   |
|                                 |   |           |        |   |         |   |   |   |
| Long-term asset by geographic region |   |           |        |   |         |   |   |   |
| United States                        |   | $              | 28,729,024  |   |         | $      | 29,581,577 |   |
| China                                |   |           | 71,226,211  |   |         |   | 67,995,469 |   |
|                                 |   | $              | 99,955,235  |   |         | $      | 97,577,046 |   |

----

|                           |   | Three Months Ended March 31, |      |
|--------------------------------|--------|------------------------------|-----------|
|                           |   | 2011                         |      |   | 2010 |   |
|                           |   |                         |      |   |   |   |
| Revenues                       |   | $                            | 2,130,409 |   |   | $ | 6,369,211 |   |
| Cost of goods sold             |   |                         | 1,954,714 |   |   |   | 5,921,966 |   |
| Gross profit                   |   |                         | 175,695   |   |   |   | 447,245 |   |
| Operating expenses             |   |                         | 629,119   |   |   |   | 332,790 |   |
| Income (loss) from operations  |   |                         | (453,424  | ) |   |   | 114,455 |   |
| Non-operating income (expense) |   |                         | (227,621  | ) |   |   | (71,736 | ) |
| Income (loss) before taxes     |   |                         | (681,045  | ) |   |   | 42,719 |   |
| Income tax expense             |   |                         | -         |   |   |   | - |   |
| Net income (loss)              |   | $                            | (681,045  | ) |   | $ | 42,719 |   |

|                |   | March 31, |      |   | December 31, |   |
|---------------------|--------|-----------|-----------|--------|--------------|--------|
|                |   | 2011      |      |   | 2010         |   |
|                |   |      |      |   |         |   |
| Current assets      |   | $         | 982,332   |   |         | $      | 3,271,226 |   |
| Long-term assets    |   |      | 2,888,467 |   |         |   | 3,022,298 |   |
|                |   | $         | 3,870,799 |   |         | $      | 6,293,524 |   |
|                |   |      |      |   |         |   |   |   |
| Current liabilities |   | $         | 1,402,237 |   |         | $      | 1,595,805 |   |

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

----

| (in thousands)                             |   | 2011   |   |   | 2010   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                       |   |   |   |   |   |   |
| Revenues                                   |   | $      | 92,987 |   |   | $      | 46,490 |   |
| Cost of goods sold                         |   | $      | 85,107 |   |   | $      | 40,618 |   |
| Gross profit                               |   | $      | 7,880  |   |   | $      | 5,872 |   |
| Operating expenses                         |   | $      | 7,362  |   |   | $      | 4,461 |   |
| Income from operations                     |   | $      | 518    |   |   | $      | 1,411 |   |
| Income (loss) from discontinued operations |   | $      | (681   | )      |   | $      | 43 |   |
|                                       |   |   |   |   |   |   |   |   |
| Interest and financing costs, net          |   | $      | 900    |   |   | $      | 78 |   |
| Other, net                                 |   | $      | (51    | )      |   | $      | (145 | ) |
| Income tax expense                         |   | $      | 539    |   |   | $      | 454 |   |
| Net income (loss) - AgFeed                 |   | $      | (1,551 | )      |   | $      | 1,067 |   |

|   | · | An overall increase of $46.5 million in revenue resulting from our Hog production—United States operations of $57.9 million offset by a decline of $11.3 million in Hog production—China revenues with Animal feed nutrition revenues declining $0.1 million. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increased operating expenses reflecting the addition of the Hog production—United States operations of approximately $700,000, an addition of $1.1 million to our reserve for bad debts and general corporate expenses of $1.1 million. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Income from operations in 2011 of $518,000 reduced by losses from discontinued operations of $681,000, interest and financing costs of $900,000, taxes of $539,000 and increased by other expenses of $51,000 producing a net loss for the period of $1.5 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Raw material prices for corn in China reflect a steady rise, while prices for soybean meal in China began to decline mid-quarter. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | China Hog prices steadily increased during the current quarter from an average of $2.02 per kg to approximately $2.32 per kg reflecting supply constraints related to disease recovery and seasonal demands related to the Chinese Spring Festival, but countered by reduced demands for pork brought about by the clenbuterol scandal in Hebei Province. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                              |   | Three Months Ended March 31, |   |
|-----------------------------------|--------|--------------------------------------------------|--------|
| (in thousands)               |   | 2011Total                                        |   |   | 2010 |   |   | $ Change |   |   | % Change |   |
|                              |   |                                             |   |   |   |   |
| Revenues                          |   | $                                                | 92,987 |   |   | $ | 46,490 |   |   | $ | 46,497 |   |   |   | 100.0 | % |
| Cost of goods sold                |   | $                                                | 85,107 |   |   | $ | 40,618 |   |   | $ | 44,489 |   |   |   | 109.5 | % |
| Gross profit                      |   | $                                                | 7,880  |   |   | $ | 5,872 |   |   | $ | 2,008 |   |   |   | 34.2 | % |
| Operating expenses                |   | $                                                | 7,362  |   |   | $ | 4,461 |   |   | $ | 2,901 |   |   |   | 65.0 | % |
| Discontinued operations           |   | $                                                | (681   | ) |   | $ | 43 |   |   | $ | (724 | ) |   |   | -1,683.7 | % |
| Interest and financing costs, net |   | $                                                | 900    |   |   | $ | 78 |   |   | $ | 822 |   |   |   | 1,053.9 | % |
| Income tax expense                |   | $                                                | 539    |   |   | $ | 454 |   |   | $ | 85 |   |   |   | 18.7 | % |
| Net income - AgFeed               |   | $                                                | (1,551 | ) |   | $ | 1,067 |   |   | $ | (2,618 | ) |   |   | -245.3 | % |

----

|                                                          |   | 2011   |    |   | 2010   |   |    | Change |   |   | Price   |   |   | Volume |   |
|---------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|--------|
| Price/Volume Analysis:                                        |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |
| Animal feed nutrition                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |
| Volume (metric tons)                                          |   |   | 43,926  |   |   |   | 42,342  |   |   |   | 1,584   |   |   |   |   |   |   |   |
| Revenue (in 000s)                                             |   | $      | 28,232  |   |   | $      | 28,060  |   |   | $      | 172     |   |   | $      | (845   | ) |   | $ | 1,017 |   |
| Cost of goods sold (in 000s)                                  |   | $      | 25,806  |   |   | $      | 23,596  |   |   | $      | 2,210   |   |   | $      | 1,280  |   |   | $ | 930 |   |
| Gross profit (in 000s)                                        |   | $      | 2,426   |   |   | $      | 4,464   |   |   | $      | 2,038   |   |   | $      | (2,125 | ) |   | $ | 87 |   |
| Gross profit margin                                           |   |   | 8.6     | %      |   |   | 15.9    | %      |   |   |    |   |   |   |   |   |   |   |   |   |
| Revenue/MT                                                    |   | $      | 643     |   |   | $      | 663     |   |   | $      | (20     | )      |   |   |   |   |   |   |   |   |
| Cost of goods sold/MT`                                        |   | $      | 587     |   |   | $      | 557     |   |   | $      | 30      |   |   |   |   |   |   |   |   |   |
| Gross profit (loss)/MT                                        |   | $      | 56      |   |   | $      | 106     |   |   | $      | (50     | )      |   |   |   |   |   |   |   |   |
|                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Hog production—China (excludes discontinued operations) |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Volume (hogs)                                                 |   |   | 84,275  |   |   |   | 138,857 |   |   |   | (54,582 | )      |   |   |   |   |   |   |   |   |
| Revenue (in 000s)                                             |   | $      | 11,451  |   |   | $      | 22,717  |   |   | $      | (11,266 | )      |   | $      | (3,850 | ) |   | $ | (7,416 | ) |
| Cost of goods sold (in 000s)                                  |   | $      | 10,382  |   |   | $      | 21,309  |   |   | $      | (10,927 | )      |   | $      | (4,204 | ) |   | $ | (6,724 | ) |
| Gross profit (in 000s)                                        |   | $      | 1,069   |   |   | $      | 1,408   |   |   | $      | (338    | )      |   | $      | 354    |   |   | $ | (693 | ) |
| Gross profit margin                                           |   |   | 9.3     | %      |   |   | 6.2     | %      |   |   |    |   |   |   |   |   |   |   |   |   |
| Revenue/hog                                                   |   | $      | 136     |   |   | $      | 164     |   |   | $      | (28     | )      |   |   |   |   |   |   |   |   |
| Cost of goods sold/hog                                        |   | $      | 123     |   |   | $      | 154     |   |   | $      | (31     | )      |   |   |   |   |   |   |   |   |
| Gross profit/hog                                              |   | $      | 13      |   |   | $      | 10      |   |   | $      | 3       |   |   |   |   |   |   |   |   |   |
|                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Hog production—United States                            |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Volume (hogs)                                                 |   |   | 333,792 |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Revenue (in 000s)                                             |   | $      | 57,884  |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Cost of goods sold (in 000s)                                  |   | $      | 53,499  |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Gross profit (in 000s)                                        |   | $      | 4,385   |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Gross profit margin                                           |   |   | 7.6     | %      |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Revenue/hog                                                   |   | $      | 173     |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Cost of goods sold/hog                                        |   | $      | 160     |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Gross profit/hog                                              |   | $      | 13      |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |

----

| Feed Type           |   | 2011   |   |   | 2010   |   |   | Increase |   |   | % Increase |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|--------|-----------------|--------|
| Complete                 |   |   | 27,733 |   |   |   | 26,647 |     |   |   | 1,086           |   |   |   | 4 | % |
| Concentrates (Condensed) |   |   | 8,788  |   |   |   | 6,509  |     |   |   | 2,279           |   |   |   | 35 | % |
| Premix/Fine              |   |   | 7,405  |   |   |   | 9,186  |     |   |   | (1,781          | )      |   |   | (19 | )% |
|                     |   |   |   |   |   |   |   |     |   |   |            |   |   |   |   |   |
| Total                    |   |   | 43,926 |   |   |   | 42,342 |     |   |   | 1,584           |   |   |   | 4 | % |

----

----

----

----

| Business Unit   |   | 2011   |   |   | 2010   |   |   | % Change |   |
|----------------------|--------|--------|--------|--------|--------|--------|--------|---------------|--------|
| Animal Nutrition     |   | $      | 2,426  |   |   | $      | 4,464  |          |   |   | (46 | ) |
| M2P2                 |   |   | 4,385  |   |   |   | N/A    |          |   |   | N/A |   |
| Hog Production-China |   |   | 1,069  |   |   |   | 1,408  |          |   |   | (24 | ) |

----

| Inclusion of US acquisition (M2P2)      |   | $      | 0.7    | (a)    |
|-----------------------------------------|--------|--------|--------|--------|
| Increase in reserve for bad debt        |   |   | 1.1    | (b)    |
| Stock-based compensation                |   |   | 0.3    | (c)    |
| Legal, accounting and professional fees |   |   | 0.4    | (d)    |
| Other                                   |   |   | 0.4    | (e)    |
|                                    |   |   |   |   |
| Total                                   |   | $      | 2.9    |   |

|   | (a) | M2P2 was acquired on September 13, 2010.  We believe that this is a normal run-rate of selling, general and administrative expenses for a quarter. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | This represents the charge to earnings in the current quarter over the charge for possible bad debts in the quarter ended March 31, 2010. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Represents the increase in compensation costs to key management, directors, advisers and line management for long-term incentive shares issued in 2011 compared to 2010. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | During the quarter ended March 31, 2011, we incurred additional charges for accounting, tax and audit services ($0.2 million) related to the transition of audit firms, provision of expanded US tax services and additional regulatory support, legal related to regulatory matters, the reorganization of AgFeed and establishment of relations with a global law firm with branch offices in China and other project related professional services. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Other represents a grouping of expenses related to corporate staff additions subsequent to March 2010, expanded insurance coverage, compliance and computer systems consulting, and shareholder services. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Revenues                     |   | $      | 2,130  |   |
|------------------------------|--------|--------|--------|--------|
| Cost of goods sold           |   |   | 1,955  |   |
|                         |   |   |   |   |
| Gross profit                 |   |   | 175    |   |
|                         |   |   |   |   |
| Operating and other expenses |   |   | 856    |   |
|                         |   |   |   |   |
| Profit (loss)                |   | $      | (681   | )      |

----

| Income (loss) from operations               |   | $      | 518          |   |
|---------------------------------------------|--------|--------|--------------|--------|
| Total non-operating income (expense)        |   |   | ( 913        | )      |
| Income tax expense                          |   |   | ( 539        | )      |
| Loss from continuing operations             |   |   | ( 934        | )      |
| Loss from discontinued operations           |   |   | ( 681        | )      |
| Loss attributed to non-controlling interest |   |   | 64           |   |
|                                        |   |   |         |   |
| Net income attributed to AgFeed             |   | $      | ( 1,551 | )      |

----

----

| Balance, December 31, 2010           |   | $      | 707,968   |   |
|--------------------------------------|--------|--------|-----------|--------|
| Additions                            |   |   | 1,221,952 |   |
| Collections of reserve accounts      |   |   | -         |   |
| Write-offs of uncollectible accounts |   |   | -         |   |
| Balance, March 31, 2011              |   | $      | 1,930,100 |   |

----

| Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
|--------------|------------------------------------------------------------|

| Item 1. | Legal Proceedings |
|---------|-------------------|

| Item 1A. | Risk Factors |
|----------|--------------|

----

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
|---------|-------------------------------------------------------------|

| Item 3. | Defaults Upon Senior Securities |
|---------|---------------------------------|

| Item 4. | (Removed and Reserved) |
|---------|------------------------|

| Item 5. | Other Information |
|---------|-------------------|

| Item 6. | Exhibits |
|---------|----------|

| (a) | Exhibits |
|-----|----------|

| Exhibit Number |         | Description of Exhibit                                                                                                                                |
|----------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |         |                                                                                                                                                            |
| 10.1           |         | Form of Restricted Stock Award Agreement.                                                                                                                       |
|           |         |                                                                                                                                                            |
| 31.1           |         | Certification of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and Exchange Act of 1934, as amended. |
|           |         |                                                                                                                                                            |
| 31.2           |         | Certification of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d 14(a), promulgated under the Securities and Exchange Act of 1934, as amended. |
|           |         |                                                                                                                                                            |
| 32.1           |         | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Chief Executive Officer).               |
|           |         |                                                                                                                                                            |
| 32.2           |    | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Chief Financial Officer).               |

----

|         | AgFeed Industries, Inc.                                                     |
|--------------|-----------------------------------------------------------------------------|
|         |                                                                        |   |
| May 10, 2011 | By:                                                                         | /s/ John A. Stadler |
|         |                                                                        |   |
|         | John A. Stadler                                                             |
|         | Interim Chief Executive Officer and President (Principal Executive Officer) |
|         |                                                                        |
| May 10, 2011 | By:                                                                         | /s/ Edward Pazdro |
|         |                                                                        |   |
|         | Edward Pazdro                                                               |
|         | Chief Financial Officer                                                     |
|         | (Principal Financial and Accounting Officer)                                |

----