**FORM      10-Q**

**x**

**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

| For                the quarterly period ended June 30,                2007 |
|----------------------------------------------------------------------------|

**TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

|                                                                                 | Zhongpin                Inc. |   |
|--------------------------------------------------------------------------------------|------------------------------|--------|
| (Exact                name of registrant as specified in its                charter) |

| Delaware                                                                      |   | 54-2100419                                          |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification No.) |
|                                                                          |   |                                                |

| 21                Changshe Road, Changge City, Henan Province, People’s Republic of                China |   | _______________           |
|----------------------------------------------------------------------------------------------------------------|--------|---------------------------|
| (Address                of principal executive offices)                                                        |   | (Zip                Code) |

|  011                86 374-6216633                                                  |
|------------------------------------------------------------------------------------------|
| (Registrant’s                telephone number, including area                code) |

|  Not                Applicable                                                                              |
|------------------------------------------------------------------------------------------------------------------|
| (Former                name, former address and former fiscal year, if changed since last                report) |

----

**ZHONGPIN      INC. **

**FORM      10-Q**

**INDEX**

|                           |   |                                             |                                                                                                                                                                                          | **Page** |
|--------------------------------|--------|--------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| **Part                    I**  |   | ** Financial                  Information** |                                                                                                                                                                                          |          |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   | Item                    1.                       | Unaudited                    Financial Statements:                                                                                                                                            |     |   |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   |                                             | Consolidated                    Balance Sheets as of June 30, 2007 (unaudited) and December 31,                    2006                                                                       |     | 2 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   |                                             | Consolidated                    Statements of Operations and Comprehensive Income (unaudited)                    for the                    three and six months ended June 30, 2007 and 2006 |     | 3 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   |                                             | Consolidated                    Statement of Changes in Stockholders’ Equity (unaudited) for the six                    months ended June 30, 2007                                      |     | 4 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   |                                             | Consolidated                    Statements of Cash Flows (unaudited) for the six months ended                    June 30,                    2007 and 2006                                    |     | 5 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   |                                             | Notes                    to Consolidated Financial Statements (unaudited)                                                                                                                     |     | 6 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   | Item                    2.                       | Management’s                    Discussion and Analysis of Financial Condition and Results of                    Operations                                                             |     | 23 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   | Item                    3.                       | Quantitative                    and Qualitative Disclosures About Market Risk                                                                                                                 |     | 39 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   | Item                    4.                       | Controls                    and Procedures                                                                                                                                                    |     | 40 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
| **Part                    II** |   | ** Other                  Information**     |                                                                                                                                                                                          |     |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   | Item                    1.                       | Legal                    Proceedings                                                                                                                                                          |     | 41 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   | Item                    1A.                      | Risk                    Factors                                                                                                                                                               |     | 41 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   | Item                    2.                       | Unregistered                    Sales of Equity Securities and Use of Proceeds                                                                                                                |     | 41 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   | Item                    3.                       | Defaults                    Upon Senior Securities                                                                                                                                            |     | 41 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   | Item                    4.                       | Submission                    of Matters to a Vote of Security Holders                                                                                                                        |     | 41 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   | Item                    5.                       | Other                    Information                                                                                                                                                          |     | 41 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
|                           |   | Item                    6.                       | Exhibits                                                                                                                                                                                      |     | 42 |
|                           |   |                                             |                                                                                                                                                                                          |     |   |
| ** Signatures**           |   | 43                                               |

----

**ZHONGPIN      INC.**

**Part      I - Financial Information**

**Item      1.**
**Financial      Statements**

----

**ZHONGPIN        INC. **

**CONSOLIDATED        BALANCE SHEETS**

*(Amounts        in U.S. dollars)*

|                                                                                                                                          |   | **June                30, 200****7** |        | **December                31, 200****6** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|-------------|------------------------------------------|--------|
| **ASSETS**                                                                                                                                    |   | (Unaudited)                          |        |                                     |   |
| Current                assets                                                                                                                 |   |                                 |        |                                     |   |
| Cash                and cash equivalents                                                                                                      |   | $                                    | 41,358,434  |                                     | $      | 21,692,814 |   |
| Accounts                receivable and other receivables                                                                                      |   |                                 | 18,833,340  |                                     |   | 13,471,450 |   |
| Purchase                deposits                                                                                                              |   |                                 | 163,305     |                                     |   | - |   |
| Prepaid                expenses and deferred charges                                                                                          |   |                                 | 513,252     |                                     |   | 200,436 |   |
| Inventories                                                                                                                                   |   |                                 | 10,516,361  |                                     |   | 10,077,479 |   |
| Tax                refund receivables                                                                                                         |   |                                 | 1,938,696   |                                     |   | 1,079,002 |   |
| Total                current assets                                                                                                           |   |                                 | 73,323,388  |                                     |   | 46,521,181 |   |
|                                                                                                                                          |   |                                 |        |                                     |   |   |   |
| Property,                plant and equipment (net)                                                                                            |   |                                 | 37,849,062  |                                     |   | 32,597,150 |   |
|                                                                                                                                          |   |                                 |        |                                     |   |   |   |
| Other                receivables (net)                                                                                                        |   |                                 | 2,079,348   |                                     |   | 2,056,642 |   |
| Construction                contracts                                                                                                         |   |                                 | 29,044,353  |                                     |   | 12,016,823 |   |
| Intangible                assets (net)                                                                                                        |   |                                 | 14,326,996  |                                     |   | 9,030,077 |   |
|                                                                                                                                          |   |                                 |        |                                     |   |   |   |
| Total                assets                                                                                                                   |   | $                                    | 156,623,147 |                                     | $      | 102,221,873 |   |
|                                                                                                                                          |   |                                 |        |                                     |   |   |   |
| **LIABILITIES                AND EQUITY**                                                                                                     |   |                                 |        |                                     |   |   |   |
| Current                liabilities                                                                                                            |   |                                 |        |                                     |   |   |   |
| Accounts                payable and other payables                                                                                            |   |                                 | 33,016,328  |                                     |   | 20,712,794 |   |
| Accrued                liabilities                                                                                                            |   |                                 | 1,988,137   |                                     |   | 1,597,557 |   |
| Short                term loans payable                                                                                                       |   |                                 | 38,763,049  |                                     |   | 23,845,198 |   |
| Taxes                payable                                                                                                                  |   |                                 | 99,832      |                                     |   | 378,705 |   |
| Deposits                from clients                                                                                                          |   |                                 | 2,541,633   |                                     |   | 683,814 |   |
| Research                and development grants payable                                                                                        |   |                                 | 237,613     |                                     |   | 248,572 |   |
| Long                term loans payable-current portion                                                                                        |   |                                 | 145,671     |                                     |   | 145,671 |   |
| Total                current liabilities                                                                                                      |   |                                 | 76,792,263  |                                     |   | 47,612,311 |   |
|                                                                                                                                          |   |                                 |        |                                     |   |   |   |
| Long                term loans payable                                                                                                        |   |                                 | 1,842,854   |                                     |   | 1,912,343 |   |
|                                                                                                                                          |   |                                 |        |                                     |   |   |   |
| Total                liabilities                                                                                                              |   |                                 | 78,635,117  |                                     |   | 49,524,654 |   |
|                                                                                                                                          |   |                                 |        |                                     |   |   |   |
| Equity                                                                                                                                        |   |                                 |        |                                     |   |   |   |
| Preferred                stock: par value $0.001; 25,000,000 authorized; 3,125,000 and 6,900,000                shares issued and outstanding |   |                                 | 3,125       |                                     |   | 6,900 |   |
| Common                stock: par value $0.001; 100,000,000 authorized; 19,039,670 and                12,132,311shares issued and outstanding  |   |                                 | 19,040      |                                     |   | 12,133 |   |
| Additional                paid in capital                                                                                                     |   |                                 | 51,110,951  |                                     |   | 32,538,535 |   |
| Retained                earnings                                                                                                              |   |                                 | 23,636,892  |                                     |   | 18,456,884 |   |
| Accumulated                other comprehensive income                                                                                         |   |                                 | 3,218,022   |                                     |   | 1,682,767 |   |
| Total                equity                                                                                                                   |   |                                 | 77,988,030  |                                     |   | 52,697,219 |   |
|                                                                                                                                          |   |                                 |        |                                     |   |   |   |
| Total                liabilities and equity                                                                                                   |   | $                                    | 156,623,147 |                                     | $      | 102,221,873 |   |

----

**ZHONGPIN        INC. AND SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

*(Amount        in U.S. dollars) (Unaudited)*

|                                                       |   | **Three                Months Ended****             June                30,             ** |       | **Six                Months Ended****           June                30,             ** |   |
|------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       |   | **2007**                                                                                                                                                                                                                     |       | **2006**                                                                                                                                                                                                       |   | **2007** |   | **2006** |   |
| Revenues                                                   |   |                                                                                                                                                                                                                         |       |                                                                                                                                                                                                           |   |   |   |   |   |
| Sales                revenues                              |   | $                                                                                                                                                                                                                            | 63,678,460 |                                                                                                                                                                                                           | $      | 31,777,348 |   | $ | 119,470,238 |   | $ | 62,270,855 |   |
| Cost                of sales                               |   |                                                                                                                                                                                                                         | 55,501,129 |                                                                                                                                                                                                           |   | 27,052,820 |   |   | 103,550,751 |   |   | 52,966,975 |   |
| Gross                profit                                |   |                                                                                                                                                                                                                         | 8,177,331  |                                                                                                                                                                                                           |   | 4,724,528 |   |   | 15,919,487 |   |   | 9,303,880 |   |
|                                                       |   |                                                                                                                                                                                                                         |       |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Operating                expenses                          |   |                                                                                                                                                                                                                         |       |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| General                and administrative expenses         |   |                                                                                                                                                                                                                         | 1,539,441  |                                                                                                                                                                                                           |   | 1,579,624 |   |   | 2,944,160 |   |   | 2,478,648 |   |
| Non-cash                compensation expense               |   |                                                                                                                                                                                                                         | 4,134,573  |                                                                                                                                                                                                           |   | - |   |   | 4,134,573 |   |   | - |   |
| Operating                expenses                          |   |                                                                                                                                                                                                                         | 1,118,416  |                                                                                                                                                                                                           |   | 716,090 |   |   | 2,244,361 |   |   | 1,520,236 |   |
| Total                operating expenses                    |   |                                                                                                                                                                                                                         | 6,792,430  |                                                                                                                                                                                                           |   | 2,295,714 |   |   | 9,323,094 |   |   | 3,998,884 |   |
|                                                       |   |                                                                                                                                                                                                                         |       |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Income                from operations                      |   |                                                                                                                                                                                                                         | 1,384,901  |                                                                                                                                                                                                           |   | 2,428,814 |   |   | 6,596,393 |   |   | 5,304,996 |   |
|                                                       |   |                                                                                                                                                                                                                         |       |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Other                income                                |   |                                                                                                                                                                                                                         |       |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Interest                income                             |   |                                                                                                                                                                                                                         | 105,020    |                                                                                                                                                                                                           |   | 149,648 |   |   | 126,924 |   |   | 245,338 |   |
| Other                income                                |   |                                                                                                                                                                                                                         | 135,257    |                                                                                                                                                                                                           |   | 23,844 |   |   | 130,829 |   |   | 36,236 |   |
| Allowances                income                           |   |                                                                                                                                                                                                                         | 3,449      |                                                                                                                                                                                                           |   | 1,113,661 |   |   | 3,449 |   |   | 1,226,845 |   |
| Exchange                gain                               |   |                                                                                                                                                                                                                         | 2,663      |                                                                                                                                                                                                           |   | 4,319 |   |   | 6,147 |   |   | 18,028 |   |
| Interest                expense                            |   |                                                                                                                                                                                                                         | (628,530   | )                                                                                                                                                                                                              |   | (227,587 | ) |   | (1,071,341 | ) |   | (607,815 | ) |
| Total                other income (expense)                |   |                                                                                                                                                                                                                         | (382,141   | )                                                                                                                                                                                                              |   | 1,063,885 |   |   | (803,992 | ) |   | 918,632 |   |
|                                                       |   |                                                                                                                                                                                                                         |       |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Net                income before taxes                     |   |                                                                                                                                                                                                                         | 1,002,760  |                                                                                                                                                                                                           |   | 3,492,699 |   |   | 5,792,401 |   |   | 6,223,628 |   |
| Provision                for income taxes                  |   |                                                                                                                                                                                                                         | 395,040    |                                                                                                                                                                                                           |   | 171,945 |   |   | 612,393 |   |   | 317,190 |   |
|                                                       |   |                                                                                                                                                                                                                         |       |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Net                income after taxes                      |   |                                                                                                                                                                                                                         | 607,720    |                                                                                                                                                                                                           |   | 3,320,754 |   |   | 5,180,008 |   |   | 5,906,438 |   |
| Minority                interest                           |   |                                                                                                                                                                                                                         | -          |                                                                                                                                                                                                           |   | 8,575 |   |   | - |   |   | 19,295 |   |
|                                                       |   |                                                                                                                                                                                                                         |       |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Net                income                                  |   | $                                                                                                                                                                                                                            | 607,720    |                                                                                                                                                                                                           | $      | 3,312,179 |   | $ | 5,180,008 |   | $ | 5,887,143 |   |
|                                                       |   |                                                                                                                                                                                                                         |       |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment     |   | $                                                                                                                                                                                                                            | 989,714    |                                                                                                                                                                                                           | $      | 123,941 |   | $ | 1,535,255 |   | $ | 265,091 |   |
| Comprehensive                income                        |   | $                                                                                                                                                                                                                            | 1,597,434  |                                                                                                                                                                                                           | $      | 3,436,120 |   | $ | 6,715,263 |   | $ | 6,152,234 |   |
|                                                       |   |                                                                                                                                                                                                                         |       |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Basic                earnings per common share             |   | $                                                                                                                                                                                                                            | 0.03       |                                                                                                                                                                                                           | $      | 0.18 |   | $ | 0.27 |   | $ | 0.34 |   |
| Diluted                earnings per common share           |   | $                                                                                                                                                                                                                            | 0.03       |                                                                                                                                                                                                           | $      | 0.14 |   | $ | 0.26 |   | $ | 0.28 |   |
| Basic                weighted average shares outstanding   |   |                                                                                                                                                                                                                         | 14,906,446 |                                                                                                                                                                                                           |   | 11,752,578 |   |   | 13,815,630 |   |   | 11,752,578 |   |
| Diluted                weighted average shares outstanding |   |                                                                                                                                                                                                                         | 20,633,233 |                                                                                                                                                                                                           |   | 23,137,578 |   |   | 20,286,545 |   |   | 21,248,411 |   |

----

**ZHONGPIN      INC. **

**CONSOLIDATED      STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY**

*(Amount      in U.S. dollars) ( Unaudited)*

|                                                     |   | Preferred                Stock |       | Common                Stock |   | Additional |   |                          |       | AccumulatedOther                |   |             |   |
|----------------------------------------------------------|--------|--------------------------------|------------|-----------------------------|--------|------------|--------|--------------------------|------------|---------------------------------|--------|------------------|--------|
|                                                     |   | Shares                         |       | Par                value    |   | Shares     |   | Par                value |       | Paid                  InCapital |   | RetainedEarnings |   | ComprehensiveIncome |   | Total |   |
| December                31, 2006                         |   |                           | 6,900,000  |                        | $      | 6,900      |   |                     | 12,132,318 |                            | $      | 12,133           |   | $ | 32,538,535 |   | $ | 18,456,884 |   | $ | 1,682,767 |   | $ | 52,697,219 |   |
|                                                     |   |                           |       |                        |   |       |   |                     |       |                            |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                stock converted to common       |   |                           | (3,775,000 | )                           |   | (3,775     | )      |                     | 3,775,000  |                            |   | 3,775            |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Increase                in Common Stock             |   |                           | -          |                        |   | **-**      |   |                     | 3,132,352  |                            |   | 3,132            |   |   | - |   |   | **-** |   |   | - |   |   | 3,132 |   |
| Warrant                expense                           |   |                           | **-**      |                        |   | **-**      |   |                     | **-**      |                            |   | **-**            |   |   | 19,140 |   |   | **-** |   |   | **-** |   |   | 19,140 |   |
| One                time non-cash compensation adjustment |   |                           | -          |                        |   | -          |   |                     | -          |                            |   | -                |   |   | 4,134,573 |   |   | - |   |   | - |   |   | 4,134,573 |   |
| Increase                in additional paid in capital    |   |                           | -          |                        |   | -          |   |                     | -          |                            |   | -                |   |   | 14,418,703 |   |   | - |   |   | - |   |   | 14,418,703 |   |
| Net                income for the period                 |   |                           | -          |                        |   | -          |   |                     | -          |                            |   | -                |   |   | - |   |   | 5,180,008 |   |   | - |   |   | 5,180,008 |   |
| Foreign                currency translation adjustment   |   |                           | -          |                        |   | -          |   |                     | -          |                            |   | -                |   |   | - |   |   | - |   |   | 1,535,255 |   |   | 1,535,255 |   |
| Balance                June 30, 2007                     |   |                           | 3,125,000  |                        | $      | 3,125      |   |                     | 19,039,670 |                            | $      | 19,040           |   | $ | 51,110,951 |   | $ | 23,636,892 |   | $ | 3,218,022 |   | $ | 77,988,030 |   |

----

**ZHONGPIN        INC. AND SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

*(Amount        in U.S. dollars) ( Unaudited)*

|                                                                                                            |   | **Six                Months Ended June 30,** |        |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|-------------|
|                                                                                                            |   | **2007**                                     |        | **2006** |   |
| Cash                flows from operating activities:                                                            |   |                                         |        |   |   |
| Net                income                                                                                       |   | $                                            | 5,180,008   |   | $ | 5,887,143 |   |
| Adjustments                to reconcile net income to net cash provided by (used in)                operations: |   |                                         |        |   |   |   |   |
| Minority                interest                                                                                |   |                                         | -           |   |   | 19,295 |   |
| Depreciation                                                                                                    |   |                                         | 782,677     |   |   | 361,958 |   |
| Amortization                                                                                                    |   |                                         | 153,243     |   |   | 51,605 |   |
| Exchange                gain                                                                                    |   |                                         | -           |   |   | (18,027 | ) |
| Provision                for allowance for bad debt                                                             |   |                                         | -           |   |   | (76 | ) |
| Warrants                expense                                                                                 |   |                                         | 19,140      |   |   | 3,190 |   |
| One-time                non-cash compensation                adjustment                                         |   |                                         | 4,134,573   |   |   | - |   |
|                                                                                                            |   |                                         |        |   |   |   |   |
| Changes                in operating assets and liabilities:                                                     |   |                                         |        |   |   |   |   |
|  Accounts                receivable and other receivables                                                  |   |                                         | (5,384,596  | ) |   | (4,101,052 | ) |
|  Purchase                deposits                                                                          |   |                                         | (163,305    | ) |   | 131,963 |   |
|  Prepaid                expense and deferred charges                                                       |   |                                         | (312,815    | ) |   | (41,976 | ) |
|  Inventories                                                                                               |   |                                         | (438,882    | ) |   | (4,005,506 | ) |
|  Tax                refunds receivable                                                                     |   |                                         | (859,694    | ) |   | (150,386 | ) |
|  Accounts                payable and other payable                                                         |   |                                         | 12,292,575  |   |   | (249,154 | ) |
|  Accrued                liabilities                                                                        |   |                                         | 390,580     |   |   | - |   |
|  Taxes                payable                                                                              |   |                                         | (278,873    | ) |   | (1,112,251 | ) |
|  Deposits                from clients                                                                      |   |                                         | 1,857,819   |   |   | (519,067 | ) |
| Net                cash provided by (used in) operating activities                                              |   |                                         | 17,372,450  |   |   | (3,742,341 | ) |
|                                                                                                            |   |                                         |        |   |   |   |   |
| Cash                flows from investing activities:                                                            |   |                                         |        |   |   |   |   |
| Construction                in progress                                                                         |   |                                         | (17,027,530 | ) |   | - |   |
| Additions                to fixed assets                                                                        |   |                                         | (6,034,589  | ) |   | (4,669,791 | ) |
| Additions                to intangible assets                                                                   |   |                                         | (5,450,162  | ) |   | (3,775,109 | ) |
|  Net                cash used in investing activities                                                      |   |                                         | (28,512,281 | ) |   | (8,444,900 | ) |
|                                                                                                            |   |                                         |        |   |   |   |   |
| Cash                flows from financing activities:                                                            |   |                                         |        |   |   |   |   |
| Repayment                of Bank overdraft                                                                      |   |                                         | -           |   |   | (619,579 | ) |
| Proceeds                from short-term loans                                                                   |   |                                         | 19,707,990  |   |   | 10,492,500 |   |
| Repayment                of short-term loans                                                                    |   |                                         | (4,790,139  | ) |   | (16,543,734 | ) |
| Repayment                of long-term loans                                                                     |   |                                         | (69,489     | ) |   | (157,283 | ) |
| Proceeds                from preferred stock                                                                    |   |                                         | -           |   |   | 23,110,703 |   |
| Proceeds                from common stock                                                                       |   |                                         | 14,421,835  |   |   | - |   |
|  Net                cash provided by financing activities                                                  |   |                                         | 29,270,197  |   |   | 16,282,607 |   |
|                                                                                                            |   |                                         |        |   |   |   |   |
| Effect                of rate changes on cash                                                                   |   |                                         | 1,535,254   |   |   | 281,279 |   |
| Increase                (decrease) in cash and cash equivalents                                                 |   |                                         | 19,665,620  |   |   | 4,376,645 |   |
| Cash                and cash equivalents, beginning of period                                                   |   |                                         | 21,692,814  |   |   | 10,142,394 |   |
| Cash                and cash equivalents, end of period                                                         |   |                                         | 41,358,434  |   |   | 14,519,039 |   |
|                                                                                                            |   |                                         |        |   |   |   |   |
| Supplemental                disclosures of cash flow information:                                               |   |                                         |        |   |   |   |   |
| Cash                paid for interest                                                                           |   | $                                            | 1,174,112   |   | $ | 636,044 |   |
| Cash                paid for income taxes                                                                       |   | $                                            | 669,237     |   | $ | 312,672 |   |

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

----

**ZHONGPIN          INC.**

**NOTES          TO CONSOLIATED FINANCIAL STATEMENTS**

| **NAME**                                                        |   | **DOMICILE/DATE                OF****INCORPORATION** |                             | **REGISTERED****CAPITAL** |   | **PERCENTAGE****OF                OWNERSHIP** |   |
|-----------------------------------------------------------------|--------|------------------------------------------------------|----------------------------------|---------------------------|--------|-----------------------------------------------|--------|
|                                                            |   |                                                 |                             |                      |   |                                          |   |
| Henan                Zhongpin Industrial Company Limited        |   |                                                 | PRC/Jan.                17, 2004 |                      |   | 18,000,000                RMB                 |   |   | 100.00 | % |
|                                                            |   |                                                 |                             |                      |   | ($2,173,913                                   | )      |   |   |   |
|                                                            |   |                                                 |                             |                      |   |                                          |   |   |   |   |
| Henan                Zhongpin Import and Export Trading Company |   |                                                 | PRC/Aug.                11, 2004 |                      |   | 5,060,000                RMB($611,111         | )      |   | 100.00 | % |

----

**ZHONGPIN          INC.**

**NOTES          TO CONSOLIATED FINANCIAL STATEMENTS**

| **NAME**                                                           |   |   | **DOMICILE/DATE                OF INCORPORATION** |   |   | **REGISTERED                CAPITAL** |   |   | **PERCENTAGE****OF                OWNERSHIP** |   |
|--------------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------|--------|--------|-----------------------------------------------|--------|
|                                                               |   |   |                                              |   |   |                                  |   |   |                                          |   |
| Zhumadian                Zhongpin Food Company Limited             |   |   | PRC/June                7, 2006                   |   |   | 5,000,000                RMB($625,344 | )      |   | 100.00                                        | %      |
|                                                               |   |   |                                              |   |   |                                  |   |   |                                          |   |
| Anyang                Zhongpin Food Company Limited                |   |   | PRC/Aug.                21, 2006                  |   |   | 4,800,000                RMB($606,927 | )      |   | 100.00                                        | %      |
|                                                               |   |   |                                              |   |   |                                  |   |   |                                          |   |
| Henan                Zhongpin Fresh Food Logistics Company Limited |   |   | PRC/Sept.                14, 2006                 |   |   | 1,500,000                RMB($189,665 | )      |   | 100.00                                        | %      |
|                                                               |   |   |                                              |   |   |                                  |   |   |                                          |   |
| Deyang                Zhongpin Food Company Limited                |   |   | PRC/Sept.                25, 2006                 |   |   | 1,000,000                RMB($126,443 | )      |   | 100.00                                        | %      |
|                                                               |   |   |                                              |   |   |                                  |   |   |                                          |   |
| Henan                Zhongpin Business Development Company Limited |   |   | PRC/Sept.                27, 2006                 |   |   | 5,000,000                RMB($632,215 | )      |   | 100.00                                        | %      |
|                                                               |   |   |                                              |   |   |                                  |   |   |                                          |   |
| Heilongjiang                Zhongpin Food Company Limited          |   |   | PRC/Oct.17,                2006                   |   |   | 1,000,000                RMB($126,406 | )      |   | 100.00                                        | %      |
|                                                               |   |   |                                              |   |   |                                  |   |   |                                          |   |
| Luoyang                Zhongpin Food Company Limited               |   |   | PRC/April                26, 2007                 |   |   | 5,000,000                RMB($647,677 | )      |   | 100.00                                        | %      |
|                                                               |   |   |                                              |   |   |                                  |   |   |                                          |   |
| Yongcheng                Zhongpin Food Company Limited             |   |   | PRC/June                1, 2007                   |   |   | 1,000,000                RMB($130,724 | )      |   | 100.00                                        | %      |

**BASIS      OF PRESENTATION **

----

**ZHONGPIN          INC.**

**NOTES          TO CONSOLIATED FINANCIAL STATEMENTS**

**FISCAL      YEAR **

**MINORITY      INTEREST IN SUBSIDIARIES **

**RESTRICTIONS      ON TRANSFER OF ASSETS OUT OF THE PRC **

**CONTROL      BY PRINCIPAL STOCKHOLDERS **

**START-UP      COSTS **

----

**ZHONGPIN          INC.**

**NOTES          TO CONSOLIATED FINANCIAL STATEMENTS**

**USE      OF ESTIMATES **

**SIGNIFICANT      ESTIMATES **

**CASH      EQUIVALENTS **

**ACCOUNTS      RECEIVABLE **

**INVENTORIES      **

**LAND      USE RIGHTS **

**REVENUE      RECOGNITION**

----

**ZHONGPIN          INC.**

**NOTES          TO CONSOLIATED FINANCIAL STATEMENTS**

**EARNINGS      PER SHARE **

|                                                            |   | Three                Months Ended June 30, |       | Six                Months Ended June 30, |   |
|-----------------------------------------------------------------|--------|--------------------------------------------|------------|------------------------------------------|--------|
|                                                            |   | 2007                                       |       | 2006                                     |   | 2007 |   | 2006 |   |
|                                                            |   | (Unaudited)                                |       | (Unaudited)                         |   | (Unaudited)  |   | (Unaudited)  |   |
| NUMERATOR                FOR BASIC AND DILUTED EPS              |   |                                       |       |                                     |   |   |   |   |   |
| Net                income (numerator for Diluted EPS)           |   | $                                          | 607,720    |                                     | $      | 3,312,179 |   | $ | 5,180,008 |   | $ | 5,887,143 |   |
| Net                income allocated to preferred stock          |   |                                       | (146,217   | )                                        |   | (1,225,248 | ) |   | (1,480,307 | ) |   | (1,934,062 | ) |
| Net                income to common stockholders (Basic)        |   | $                                          | 461,503    |                                     | $      | 2,086,931 |   | $ | 3,699,701 |   | $ | 3,953,081 |   |
|                                                            |   |                                       |       |                                     |   |   |   |   |   |   |   |   |   |
| DENOMINATORS                FOR BASIC AND DILUTED EPS           |   |                                       |       |                                     |   |   |   |   |   |   |   |   |   |
| Common                stock outstanding                         |   |                                       | 14,906,446 |                                     |   | 11,752,578 |   |   | 13,815,630 |   |   | 11,752,578 |   |
| DENOMINATOR                FOR BASIC EPS                        |   |                                       | 14,906,446 |                                     |   | 11,752,578 |   |   | 13,815,630 |   |   | 11,752,578 |   |
| Add:                Weighted average preferred as if converted  |   |                                       | 4,722,794  |                                     |   | 6,900,000 |   |   | 5,527,846 |   |   | 5,750,000 |   |
| Add:                Weighted average stock warrants outstanding |   |                                       | 1,003,993  |                                     |   | 4,485,000 |   |   | 943,069 |   |   | 3,737,500 |   |
| DENOMINATOR                FOR DILUTED EPS                      |   |                                       | 20,633,233 |                                     |   | 23,137,578 |   |   | 20,286,545 |   |   | 21,248,411 |   |
|                                                            |   |                                       |       |                                     |   |   |   |   |   |   |   |   |   |
| EPS                - Basic                                      |   | $                                          | 0.03       |                                     | $      | 0.18 |   | $ | 0.27 |   | $ | 0.34 |   |
| EPS                - Diluted                                    |   | $                                          | 0.03       |                                     | $      | 0.14 |   | $ | 0.26 |   | $ | 0.28 |   |

**SHIPPING      AND HANDLING COSTS**

----

**ZHONGPIN            INC.**

**NOTES            TO CONSOLIATED FINANCIAL STATEMENTS**

**ADVERTISING      COSTS**

**RESEARCH      AND DEVELOPMENT COSTS**

**PROPERTY      AND EQUIPMENT **

**OPERATING      LEASES **

**INCOME      TAXES **

----

**ZHONGPIN            INC.**

**NOTES            TO CONSOLIATED FINANCIAL STATEMENTS**

3.                   BUSINESS      ACQUISITIONS

4.                   ACCOUNTS      RECEIVABLE AND OTHER RECEIVABLES 

|                                   |   | June                30, 2007 |       | December                31, 2006 |   |
|----------------------------------------|--------|------------------------------|------------|----------------------------------|--------|
| Accounts                receivable     |   | $                            | 19,132,553 |                             | $      | 13,763,260 |   |
| Other                receivables       |   |                         | 2,202,614  |                             |   | 2,176,858 |   |
| Allowance                for bad debts |   |                         | (422,479   | )                                |   | (412,026 | ) |
|                                   |   | $                            | 20,912,688 |                             | $      | 15,528,092 |   |
|                                   |   |                         |       |                             |   |   |   |
| Current                                |   | $                            | 18,833,340 |                             | $      | 13,471,450 |   |
| Non-current                            |   |                         | 2,079,348  |                             |   | 2,056,642 |   |
|                                   |   | $                            | 20,912,688 |                             | $      | 15,528,092 |   |

----

**ZHONGPIN            INC.**

**NOTES            TO CONSOLIATED FINANCIAL STATEMENTS**

|                                                 |   | June                30, 2007 |       | December                31, 2006 |   |
|------------------------------------------------------|--------|------------------------------|------------|----------------------------------|--------|
| Raw                materials                         |   | $                            | 1,815,525  |                             | $      | 307,202 |   |
| Low                value consumables & packaging |   |                         | 893,586    |                             |   | 401,177 |   |
| Work-in-progress                                     |   |                         | 1,323,109  |                             |   | 487,930 |   |
| Finished                goods                        |   |                         | 6,484,141  |                             |   | 8,881,170 |   |
| Net                inventories                       |   | $                            | 10,516,361 |                             | $      | 10,077,479 |   |

|                                          |   | June                30, 2007 |       | December                31, 2006 |   |
|-----------------------------------------------|--------|------------------------------|------------|----------------------------------|--------|
| Machinery                and equipment        |   | $                            | 14,247,680 |                             | $      | 12,453,177 |   |
| Furniture                and office equipment |   |                         | 581,231    |                             |   | 434,128 |   |
| Motor                vehicles                 |   |                         | 647,199    |                             |   | 416,479 |   |
| Buildings                                     |   |                         | 26,529,969 |                             |   | 22,584,113 |   |
| Subtotal                                      |   |                         | 42,006,079 |                             |   | 35,887,897 |   |
| Less:                Acquisition gain         |   |                         | (84,357    | )                                |   | (92,510 | ) |
| Less:                accumulated depreciation |   |                         | (4,072,660 | )                                |   | (3,198,237 | ) |
| Net                property and equipment     |   | $                            | 37,849,062 |                             | $      | 32,597,150 |   |
| Depreciation                expense           |   | $                            | 782,677    |                             | $      | 973,618 |   |

7.             INTANGIBLE      ASSETS 

|                                    |   | June                30, 2007 |       | December                31, 2006 |   |
|-----------------------------------------|--------|------------------------------|------------|----------------------------------|--------|
| Land                use rights          |   | $                            | 14,708,105 |                             | $      | 9,250,410 |   |
| Accumulated                amortization |   |                         | (381,109   | )                                |   | (220,333 | ) |
|                                    |   | $                            | 14,326,996 |                             | $      | 9,030,077 |   |
| Amortization                expense     |   | $                            | 153,243    |                             | $      | 127,449 |   |

----

**ZHONGPIN      INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

8.                   CONSTRUCTION      IN PROGRESS 

|   Construction                Project                           |   | Completionor                Estimated Completion                Date |                          |   June                30, 2007 |   |   December                31, 2006 |   |
|---------------------------------------------------------------------------|--------|----------------------------------------------------------------------|-------------------------------|------------------------------------------|--------|----------------------------------------------|--------|
|                                                                      |   |                                                                 |                          |                                     |   |                                         |   |   |   |   |
| Production                line for chilled and frozen pork (in Zhumadian) |   |                                                                 | June                2007      |                                     | $      | 13,625,297                                   |   | $ | 9,313,544 |   |
| Production                line for chilled and frozen pork (in Anyang)    |   |                                                                 | September                2007 |                                     |   | 10,428,853                                   |   |   | 1,161,339 |   |
| Land                use right of Industrial Park No.4 land                |   |                                                                 | December                2007  |                                     |   | 1,122,412                                    |   |   | 970,147 |   |
| Production                line for prepared pork (in industrial plant)    |   |                                                                 | April                2007     |                                     |   | 2,570,055                                    |   |   | 542,493 |   |
| Logistic                Software                                          |   |                                                                 | July                2007      |                                     |   | 30,044                                       |   |   | 29,300 |   |
| Production                Line for chilled and frozen pork (in Luoyang)   |   |                                                                 | June                2008      |                                     |   | 58,281                                       |   |   | - |   |
| Logistic                Hub and Cooling Storage                           |   |                                                                 | December                2007  |                                     |   | 1,209,411                                    |   |   | - |   |
|                                                                      |   |                                                                 |                          |                                     | $      | 29,044,353                                   |   | $ | 12,016,823 |   |

**SHORT-TERM      LOANS **

**LONG-TERM      LOANS **

|                                         |   | June                30, 2007 |       | December                31, 2006 |   |
|----------------------------------------------|--------|------------------------------|------------|----------------------------------|--------|
| Short-Term                Loans Payable      |   | $                            | 38,763,049 |                             | $      | 23,845,198 |   |
| Total                Long-Term Loans Payable |   |                         | 1,988,525  |                             |   | 2,058,014 |   |
|                                         |   | $                            | 40,751,574 |                             | $      | 25,903,212 |   |

----

**ZHONGPIN          INC.**

**NOTES          TO CONSOLIATED FINANCIAL STATEMENTS**

| Payments                due in 2007 - current portion |   | $      | 72,836    |   |
|-------------------------------------------------------|--------|--------|-----------|--------|
| Payments                due in 2008 - current portion |   | $      | 72,835    |   |
| Payments                due in 2008                   |   |   | 72,836    |   |
| Payments                due in 2009                   |   |   | 145,671   |   |
| Payments                due in 2010                   |   |   | 145,671   |   |
| Payments                due in 2011              |   |   | 145,671   |   |
| Payments                due thereafter                |   |   | 1,333,006 |   |
|                                                  |   | $      | 1,988,526 |   |

**LEGAL      PROCEEDINGS **

**REGISTRATION      RIGHTS AGREEMENT**

June 29,      2006, we were required to pay the investors liquidated damages in an amount      equal to 1-1/2% per month times the amount paid by the investors for the      purchase of our Series A convertible preferred stock and warrants (approximately      $414,000 per month) until the registration statement we filed with the

----

**ZHONGPIN      INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

|                            |   |  Three                Months Ended June 30, |   |  Six                Months Ended June 30, |   |
|---------------------------------|--------|--------------------------------------------------|--------|------------------------------------------------|--------|
|                            |   | 2007                                             |   | 2006                                           |   | 2007 |   | 2006 |   |
| Allowance                income |   | $                                                | 3,449  |                                           | $      | 1,113,661 |   | $ | 3,449 |   | $ | 1,226,845 |   |

----

**ZHONGPIN        INC.**

**NOTES          TO CONSOLIATED FINANCIAL STATEMENTS**

*Dividends*

*Preference      on Liquidation*

*Voting*

*Appoint      and Elect a Director*

----

**ZHONGPIN        INC.**

**NOTES          TO CONSOLIATED FINANCIAL STATEMENTS**

*Conversion      Right*

*Automatic      Conversion*

*Protective      Provisions*

----

**ZHONGPIN        INC.**

**NOTES          TO CONSOLIATED FINANCIAL STATEMENTS**

|    |   |   | Exercise                Price  |   |   | Number                Outstanding |   |   | Weighted                Average Exercise                Price |   |   | Weighted                Average Life - Years |   |
|--------------|--------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|--------|---------------------------------------------------------------|--------|--------|----------------------------------------------|--------|
| Warrants     |   | $      | 4.00                - $6.50         |   |   | 2,337,437                         |   | $      | 4.85                                                          |   |   | 3.66                                         |   |

|     |   |  Exercise                Price |                        | Number                Outstanding |   | Weighted                Average Exercise                Price |   |
|----------|--------|-------------------------------------|-----------------------------|-----------------------------------|--------|---------------------------------------------------------------|--------|
| Warrants |   | $                                   | 4.00                - $6.50 |                              |   | 2,337,437                                                     |   | $ | 4.85 |   |

| Expected                life in years |   |   | 3                - 5       |   |
|---------------------------------------|--------|--------|----------------------------|--------|
| Interest                rate          |   |   | 4%                - 4.52   | %      |
| Volatility                            |   |   | 6.1%                - 68.5 | %      |
| Dividend                yield         |   |   | 0                          | %      |

----

**ZHONGPIN        INC.**

**NOTES          TO CONSOLIATED FINANCIAL STATEMENTS**

|                                  |   | **Sales                by Segment****(U.S.                dollars in millions)**                                                                                                                                                   |   |
|---------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Three                Months Ended****               June                30,            ** |   | **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                           |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                               |        |   |   |  |   |   |   |   |   |   |   |
| Chilled                Park           |   | $                                                                                                                                                                                                                                  | 32.88  |   | $ | 10.59 |   | $ | 22.29 |   |   | 210 | % |
| Frozen                pork            |   |                                                                                                                                                                                                                               | 22.20  |   |   | 16.22 |   |   | 5.98 |   |   | 37 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                               | 5.98   |   |   | 3.49 |   |   | 2.49 |   |   | 71 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                               | 2.62   |   |   | 1.48 |   |   | 1.14 |   |   | 77 | % |
| Total                                 |   | $                                                                                                                                                                                                                                  | 63.68  |   | $ | 31.78 |   | $ | 31.90 |   |   | 100 | % |

|                                  |   | **Sales                by Segment****(U.S.                dollars in millions)**                                                                                                                                                 |   |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Six                Months Ended****               June                30,            ** |   | **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                         |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Chilled                Park           |   | $                                                                                                                                                                                                                                | 61.36  |   | $ | 20.93 |   | $ | 40.43 |   |   | 193 | % |
| Frozen                pork            |   |                                                                                                                                                                                                                             | 42.49  |   |   | 32.39 |   |   | 10.10 |   |   | 31 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                             | 11.83  |   |   | 6.76 |   |   | 5.07 |   |   | 75 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                             | 3.79   |   |   | 2.20 |   |   | 1.59 |   |   | 72 | % |
| Total                                 |   | $                                                                                                                                                                                                                                | 119.47 |   | $ | 62.28 |   | $ | 57.19 |   |   | 92 | % |

|                                  |   | **Operating                Income by Segment****(U.S.                dollars in millions)**                                                                            |   |
|---------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   |  **Three                Months Ended****         June                30,       ** |   |   **Change** |   | **Operating****Margin                Three Months****     Ended                June                30,         ** |   |
|                                  |   | **2007**                                                                                                                                                               |   | **2006** |   | **2007/2006** |   | **2007** |   | **2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                                                                                                      | 0.45   |   | $ | 0.77 |   | $ | (0.32 | ) |   | 1.36 | % |   | 7.27 | % |
| Frozen                Pork            |   |                                                                                                                                                                   | 0.29   |   |   | 1.10 |   |   | (0.81 | ) |   | 1.32 | % |   | 6.78 | % |
| Prepared                Pork Product  |   |                                                                                                                                                                   | 0.50   |   |   | 0.39 |   |   | 0.11 |   |   | 8.36 | % |   | 11.17 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                   | 0.15   |   |   | 0.16 |   |   | (0.01 | ) |   | 5.73 | % |   | 10.81 | % |
| Total                                 |   | $                                                                                                                                                                      | 1.39   |   | $ | 2.42 |   | $ | (1.03 | ) |   | 2.18 | % |   | 7.61 | % |

----

**ZHONGPIN        INC.**

**NOTES          TO CONSOLIATED FINANCIAL STATEMENTS**

|                                  |   | **Operating                Income by Segment****(U.S.                dollars in millions)**                                                                          |   |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   |  **Six                Months Ended****         June                30,       ** |   |   **Change** |   | **Operating****Margin                Six Months****     Ended June                30,      ** |   |
|                                  |   | **2007**                                                                                                                                                             |   | **2006** |   | **2007/2006** |   | **2007** |   | **2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                                                                                                    | 2.93   |   | $ | 1.73 |   | $ | 1.20 |   |   | 4.78 | % |   | 8.27 | % |
| Frozen                Pork            |   |                                                                                                                                                                 | 2.04   |   |   | 2.54 |   |   | (0.50 | ) |   | 4.80 | % |   | 7.84 | % |
| Prepared                Pork Product  |   |                                                                                                                                                                 | 1.35   |   |   | 0.80 |   |   | 0.55 |   |   | 11.41 | % |   | 11.83 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                 | 0.28   |   |   | 0.23 |   |   | 0.05 |   |   | 7.39 | % |   | 10.45 | % |
| Total                                 |   | $                                                                                                                                                                    | 6.60   |   | $ | 5.30 |   | $ | 1.30 |   |   | 5.52 | % |   | 8.51 | % |

----

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

**Disclosure      Regarding Forward-Looking Statements**

*The      statements contained in this Report with respect to our financial condition,      results of operations and business that are not historical facts are“forward-looking statements” within the meaning of the Private Securities      Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act      of      1934, as amended (the “Exchange Act”). We intend such forward-looking statements      to be covered by the safe harbor provisions for forward-looking statements      contained in Section 21E of the Exchange Act. Forward-looking statements can      be      identified by the use of forward-looking terminology, such as “estimates,”“projects,” “plans,” “believes,” “expects,” “anticipates,” “intends,” or the      negative thereof or other variations thereon, or by discussions of strategy      that      involve risks and uncertainties. Management wishes to caution the reader of      the      forward-looking statements that such statements, which are contained in this      Report, reflect our current beliefs with respect to future events and involve      known and unknown risks, uncertainties and other factors, including, but not      limited to, economic, competitive, regulatory, technological, key employee,      and      general business factors affecting our operations, markets, growth, services,      products, licenses and other factors discussed in our other filings with the      Securities and Exchange Commission, and that these statements are only estimates      or predictions. No assurances can be given regarding the achievement of future      results, as actual results may differ materially as a result of risks facing      our      company, and actual events may differ from the assumptions underlying the      statements that have been made regarding anticipated events. *

*These      forward-looking statements are subject to numerous assumptions, risks and      uncertainties that may cause our actual results to be materially different      from      any future results expressed or implied by us in those statements. Some of      these      risks are described in “Risk Factors” in Item 1A of our Annual Report on      Form 10-K for the year ended December 31, 2006. *

*These      risk factors should be considered in connection with any subsequent written      or      oral forward-looking statements that we or persons acting on our behalf may      issue. All written and oral forward looking statements made in connection with      this Report that are attributable to our company or persons acting on our behalf      are expressly qualified in their entirety by these cautionary statements. Given      these uncertainties, we caution investors not to unduly rely on our      forward-looking statements. We do not undertake any obligation to review or      confirm analysts’ expectations or estimates or to release publicly any revisions      to any forward-looking statements to reflect events or circumstances after      the      date of this Report or to reflect the occurrence of unanticipated events.      Further, the information about our intentions contained in this Report is a      statement of our intention as of the date of this Report and is based upon,      among other things, the existing regulatory environment, industry conditions,      market conditions and prices, the economy in general and our assumptions as      of      such date. We may change our intentions, at any time and without notice, based      upon any changes in such factors, in our assumptions or      otherwise.*

**General**

----

**Overview**

----

**Critical      Accounting Policies **

***Accounts      Receivable.***
** **

***Inventory      Valuation***
**.      **

***Goodwill      and Other Intangibles***
**.      **

----

***Income      Taxes***
**.      **
** **

**Results      of Operations **

----

|                                                         |   | **Three                Months Ended****                       June 30,                       ** |                 | **Six                Months Ended****                       June 30,                        ** |   |
|--------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                         |   | **2007**                                                                                                                                                              |                 | **2006**                                                                                                                                                                  |   | **2007** |   | **2006** |   |
|                                                         |   | (U.S.                dollars in thousands)                                                                                                                            |                 |
|                                                         |   |                                                                                                                                                                  |                 |
| Revenues:                                                    |   |                                                                                                                                                                  |                 |                                                                                                                                                                      |   |   |   |   |   |
| Sales                revenues                           |   | $                                                                                                                                                                     | 63,678               |                                                                                                                                                                      | $      | 31,777 |   | $ | 119,470 |   | $ | 62,271 |   |
| Cost                of sales                            |   |                                                                                                                                                                  | 55,501               |                                                                                                                                                                      |   | 27,053 |   |   | 103,551 |   |   | 52,967 |   |
| Gross                profit                             |   |                                                                                                                                                                  | 8,177                |                                                                                                                                                                      |   | 4,724 |   |   | 15,919 |   |   | 9,304 |   |
|                                                         |   |                                                                                                                                                                  |                 |                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                           |   |                                                                                                                                                                  |                 |                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| General                and administrative expenses      |   |                                                                                                                                                                  | 1,539                |                                                                                                                                                                      |   | 1,580 |   |   | 2,944 |   |   | 2,479 |   |
| One                time non-cash compensation adjustment     |   |                                                                                                                                                                  | 4,135                |                                                                                                                                                                      |   | — |   |   | 4,135 |   |   | — |   |
| Operating                expenses                       |   |                                                                                                                                                                  | 1,118                |                                                                                                                                                                      |   | 716 |   |   | 2,244 |   |   | 1,520 |   |
| Total                operating expenses                 |   |                                                                                                                                                                  | 6,792                |                                                                                                                                                                      |   | 2,295 |   |   | 9,323 |   |   | 3,999 |   |
|                                                         |   |                                                                                                                                                                  |                 |                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Income                from operations                   |   |                                                                                                                                                                  | 1,385                |                                                                                                                                                                      |   | 2,429 |   |   | 6,596 |   |   | 5,305 |   |
|                                                         |   |                                                                                                                                                                  |                 |                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Other                income (expense):                       |   |                                                                                                                                                                  |                 |                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Interest                income                          |   |                                                                                                                                                                  | 105                  |                                                                                                                                                                      |   | 150 |   |   | 127 |   |   | 245 |   |
| Other                income                             |   |                                                                                                                                                                  | 135                  |                                                                                                                                                                      |   | 24 |   |   | 131 |   |   | 36 |   |
| Allowance                income                         |   |                                                                                                                                                                  | 3                    |                                                                                                                                                                      |   | 1,114 |   |   | 3 |   |   | 1,227 |   |
| Exchange                gain                            |   |                                                                                                                                                                  | 3                    |                                                                                                                                                                      |   | 4 |   |   | 6 |   |   | 18 |   |
| Interest                expense                         |   |                                                                                                                                                                  | (628                 | )                                                                                                                                                                         |   | (228 | ) |   | (1,071 | ) |   | (608 | ) |
| Total                other income (expense)                  |   |                                                                                                                                                                  | (                382 | )                                                                                                                                                                         |   | 1,064 |   |   | (804 | ) |   | 918 |   |
|                                                         |   |                                                                                                                                                                  |                 |                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Net                income before taxes                  |   |                                                                                                                                                                  | 1,003                |                                                                                                                                                                      |   | 3,493 |   |   | 5,792 |   |   | 6,223 |   |
| Provision                for income taxes               |   |                                                                                                                                                                  | 395                  |                                                                                                                                                                      |   | 172 |   |   | 612 |   |   | 317 |   |
|                                                         |   |                                                                                                                                                                  |                 |                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Net                income after taxes                   |   |                                                                                                                                                                  | 608                  |                                                                                                                                                                      |   | 3,321 |   |   | 5,180 |   |   | 5,906 |   |
| Minority                interest in gain                |   |                                                                                                                                                                  | —              |                                                                                                                                                                      |   | 9 |   |   | — |   |   | 19 |   |
| Net                income                               |   |                                                                                                                                                                  | 608                  |                                                                                                                                                                      |   | 3,312 |   |   | 5,180 |   |   | 5,887 |   |
| Foreign                currency translation adjustment  |   |                                                                                                                                                                  | 989                  |                                                                                                                                                                      |   | 124 |   |   | 1,535 |   |   | 265 |   |
| Comprehensive                income                     |   | $                                                                                                                                                                     | 1,597                |                                                                                                                                                                      | $      | 3,436 |   | $ | 6,715 |   | $ | 6,152 |   |

***Comparison      of Three Months Ended June 30, 2007 and June 30, 2006***

*Revenue.*

----

*Cost      of sales.*

*General      and administrative expenses.*

*Non-cash      compensation adjustment. *

----

*Operating      expenses. *

*Interest      expense.*

*Interest      income, allowance income, other income and exchange gain.*

*Income      Taxes.*

***Comparison      of Six Months Ended June 30, 2007 and June 30, 2006***

*Revenue.*

----

*Cost      of sales.*

*General      and administrative expenses.*

*Non-cash      compensation adjustment. *

*Operating      expenses. *

----

*Interest      expense.*

*Interest      income, allowance income, other income and exchange gain.*

*Income      Taxes.*

***Non-Gaap      Pro Forma Results of Operations***

----

|                                                         |   | **Three                Months Ended ****June                30,** |                 | **Six                Months Ended ****June                30, ** |   |
|--------------------------------------------------------------|--------|------------------------------------------------------------------------|----------------------|----------------------------------------------------------------------------|--------|
|                                                         |   | **2007**                                                               |                 | **2006**                                                                   |   | **2007** |   | **2006** |   |
|                                                         |   | (U.S.                dollars in thousands)                             |                 |
|                                                         |   |                                                                   |                 |                                                                       |   |   |   |   |   |
| Revenues:                                                    |   |                                                                   |                 |                                                                       |   |   |   |   |   |
| Sales                revenues                           |   | $                                                                      | 63,678               |                                                                       | $      | 31,777 |   | $ | 119,470 |   | $ | 62,271 |   |
| Cost                of sales                            |   |                                                                   | 55,501               |                                                                       |   | 27,053 |   |   | 103,551 |   |   | 52,967 |   |
| Gross                profit                             |   |                                                                   | 8,177                |                                                                       |   | 4,724 |   |   | 15,919 |   |   | 9,304 |   |
|                                                         |   |                                                                   |                 |                                                                       |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                           |   |                                                                   |                 |                                                                       |   |   |   |   |   |   |   |   |   |
| General                and administrative expenses      |   |                                                                   | 1,539                |                                                                       |   | 1,023 |   |   | 2,944 |   |   | 1,922 |   |
| Operating                expenses                       |   |                                                                   | 1,119                |                                                                       |   | 716 |   |   | 2,244 |   |   | 1,520 |   |
| Total                operating expenses                 |   |                                                                   | 2,658                |                                                                       |   | 1,739 |   |   | 5,188 |   |   | 3,442 |   |
|                                                         |   |                                                                   |                 |                                                                       |   |   |   |   |   |   |   |   |   |
| Income                from operations                   |   |                                                                   | 5,519                |                                                                       |   | 2,985 |   |   | 10,731 |   |   | 5,862 |   |
|                                                         |   |                                                                   |                 |                                                                       |   |   |   |   |   |   |   |   |   |
| Other                income (expense):                       |   |                                                                   |                 |                                                                       |   |   |   |   |   |   |   |   |   |
| Interest                income                          |   |                                                                   | 105                  |                                                                       |   | 150 |   |   | 127 |   |   | 245 |   |
| Other                income                             |   |                                                                   | 135                  |                                                                       |   | 24 |   |   | 131 |   |   | 36 |   |
| Allowance                income                         |   |                                                                   | 3                    |                                                                       |   | 1,114 |   |   | 3 |   |   | 1,227 |   |
| Exchange                gain (loss)                     |   |                                                                   | 3                    |                                                                       |   | 4 |   |   | 6 |   |   | 18 |   |
| Interest                expense                         |   |                                                                   | (628                 | )                                                                          |   | (228 | ) |   | (1,071 | ) |   | (608 | ) |
| Total                other income (expense)                  |   |                                                                   | (                382 | )                                                                          |   | 1,064 |   |   | (804 | ) |   | 918 |   |
|                                                         |   |                                                                   |                 |                                                                       |   |   |   |   |   |   |   |   |   |
| Net                income before taxes                  |   |                                                                   | 5,137                |                                                                       |   | 4,049 |   |   | 9,927 |   |   | 6,780 |   |
| Provision                for income taxes               |   |                                                                   | 395                  |                                                                       |   | 172 |   |   | 612 |   |   | 317 |   |
|                                                         |   |                                                                   |                 |                                                                       |   |   |   |   |   |   |   |   |   |
| Net                income after taxes                   |   |                                                                   | 4,742                |                                                                       |   | 3,877 |   |   | 9,315 |   |   | 6,463 |   |
| Minority                interest in gain (loss)         |   |                                                                   | —              |                                                                       |   | 9 |   |   | — |   |   | 19 |   |
| Net                income                               |   |                                                                   | 4,742                |                                                                       |   | 3,868 |   |   | 9,315 |   |   | 6,444 |   |
| Foreign                currency translation adjustment  |   |                                                                   | 989                  |                                                                       |   | 124 |   |   | 1,535 |   |   | 265 |   |
| Comprehensive                income                     |   | $                                                                      | 5,731                |                                                                       | $      | 3,992 |   | $ | 10,850 |   | $ | 6,709 |   |
|                                                         |   |                                                                   |                 |                                                                       |   |   |   |   |   |   |   |   |   |
| Basic                earnings per common share               |   | $                                                                      | 0.24                 |                                                                       | $      | 0.21 |   | $ | 0.48 |   | $ | 0.37 |   |
| Diluted                earnings per common share             |   | $                                                                      | 0.23                 |                                                                       | $      | 0.17 |   | $ | 0.46 |   | $ | 0.30 |   |
| Basic                weighted average shares outstanding     |   |                                                                   | 14,906,446           |                                                                       |   | 11,752,578 |   |   | 13,815,630 |   |   | 11,752,578 |   |
| Diluted                weighted average shares outstanding   |   |                                                                   | 20,633,233           |                                                                       |   | 23,137,578 |   |   | 20,286,545 |   |   | 21,240,078 |   |

----

**Segment      Information**

|                                  |   | **Sales                by Segment****(U.S.                dollars in millions)**                                                                                                                                                   |   |
|---------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Three                Months Ended****               June                30,            ** |   | **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                           |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| Chilled                Park           |   | $                                                                                                                                                                                                                                  | 32.88  |   | $ | 10.59 |   | $ | 22.29 |   |   | 210 | % |
| Frozen                pork            |   |                                                                                                                                                                                                                               | 22.20  |   |   | 16.22 |   |   | 5.98 |   |   | 37 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                               | 5.98   |   |   | 3.49 |   |   | 2.49 |   |   | 71 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                               | 2.62   |   |   | 1.48 |   |   | 1.14 |   |   | 77 | % |
| Total                                 |   | $                                                                                                                                                                                                                                  | 63.68  |   | $ | 31.78 |   | $ | 31.90 |   |   | 100 | % |

----

|                                  |   | **Sales                by Segment****(in                metric tons)**                                                                                                                                                             |   |
|---------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Three                Months Ended****              June                30,             ** |   |  **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                           |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| Chilled                Pork           |   |                                                                                                                                                                                                                               | 20,395 |   |   | 9,316 |   |   | 11,079 |   |   | 119 | % |
| Frozen                Pork            |   |                                                                                                                                                                                                                               | 14,185 |   |   | 14,183 |   |   | 2 |   |   | 0 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                               | 3,348  |   |   | 2,267 |   |   | 1,081 |   |   | 48 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                               | 2,487  |   |   | 1,450 |   |   | 1,037 |   |   | 72 | % |
| Total                                 |   |                                                                                                                                                                                                                               | 40,415 |   |   | 27,216 |   |   | 13,199 |   |   | 48 | % |

|                                  |   | **Operating                Income by Segment****(U.S.                dollars in millions)**                                                                            |   |
|---------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   |  **Three                Months Ended****         June                30,       ** |   |   **Change** |   | **Operating****Margin                Three Months****      Ended                June 30,       ** |   |
|                                  |   | **2007**                                                                                                                                                               |   | **2006** |   | **2007/2006** |   | **2007** |   | **2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                                                                                                      | 0.45   |   | $ | 0.77 |   | $ | (0.32 | ) |   | 1.36 | % |   | 7.27 | % |
| Frozen                Pork            |   |                                                                                                                                                                   | 0.29   |   |   | 1.10 |   |   | (0.81 | ) |   | 1.32 | % |   | 6.78 | % |
| Prepared                Pork Product  |   |                                                                                                                                                                   | 0.50   |   |   | 0.39 |   |   | 0.11 |   |   | 8.36 | % |   | 11.17 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                   | 0.15   |   |   | 0.16 |   |   | (0.01 | ) |   | 5.73 | % |   | 10.81 | % |
| Total                                 |   | $                                                                                                                                                                      | 1.39   |   | $ | 2.42 |   | $ | (1.03 | ) |   | 2.18 | % |   | 7.61 | % |

|                                  |   | **Production                by Segment****(in                metric tons)**                                                                                                                                                                                            |   |
|---------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Three                Months Ended****                 June                30,                ** |   |  **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                                                               |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |
| Chilled                Pork           |   |                                                                                                                                                                                                                                                                   | 20,589 |   |   | 9,314 |   |   | 11,275 |   |   | 121 | % |
| Frozen                Pork            |   |                                                                                                                                                                                                                                                                   | 14,320 |   |   | 15,428 |   |   | (1,108 | ) |   | (7 | %) |
| Prepared                Pork Products |   |                                                                                                                                                                                                                                                                   | 3,588  |   |   | 2,307 |   |   | 1,281 |   |   | 56 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                                                                   | 2,334  |   |   | 1,135 |   |   | 1,199 |   |   | 106 | % |
| Total                                 |   |                                                                                                                                                                                                                                                                   | 40,831 |   |   | 28,184 |   |   | 12,647 |   |   | 45 | % |

----

|                                  |   | **Sales                by Segment****(U.S.                dollars in millions)**                                                                                                                                                 |   |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Six                Months Ended****               June                30,            ** |   | **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                         |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Chilled                Park           |   | $                                                                                                                                                                                                                                | 61.36  |   | $ | 20.93 |   | $ | 40.43 |   |   | 193 | % |
| Frozen                pork            |   |                                                                                                                                                                                                                             | 42.49  |   |   | 32.39 |   |   | 10.10 |   |   | 31 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                             | 11.83  |   |   | 6.76 |   |   | 5.07 |   |   | 75 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                             | 3.79   |   |   | 2.20 |   |   | 1.59 |   |   | 72 | % |
| Total                                 |   | $                                                                                                                                                                                                                                | 119.47 |   | $ | 62.28 |   | $ | 57.19 |   |   | 92 | % |

|                                  |   | **Sales                by Segment****(in                metric tons)**                                                                                                                                                           |   |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Six                Months Ended****              June                30,             ** |   |  **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                         |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Chilled                Pork           |   |                                                                                                                                                                                                                             | 43,743 |   |   | 18,714 |   |   | 25,029 |   |   | 134 | % |
| Frozen                Pork            |   |                                                                                                                                                                                                                             | 30,988 |   |   | 28,966 |   |   | 2,022 |   |   | 7 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                             | 6,686  |   |   | 4,503 |   |   | 2,183 |   |   | 48 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                             | 4,670  |   |   | 2,471 |   |   | 2,199 |   |   | 89 | % |
| Total                                 |   |                                                                                                                                                                                                                             | 86,087 |   |   | 54,655 |   |   | 31,432 |   |   | 58 | % |

|                                  |   | **Operating                Income by Segment****(U.S.                dollars in millions)**                                                                          |   |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   |  **Six                Months Ended****         June                30,       ** |   |   **Change** |   | **Operating****Margin                Six Months****     Ended                June 30,    ** |   |
|                                  |   | **2007**                                                                                                                                                             |   | **2006** |   | **2007/2006** |   | **2007** |   | **2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                                                                                                    | 2.93   |   | $ | 1.73 |   | $ | 1.20 |   |   | 4.78 | % |   | 8.27 | % |
| Frozen                Pork            |   |                                                                                                                                                                 | 2.04   |   |   | 2.54 |   |   | (0.50 | ) |   | 4.80 | % |   | 7.84 | % |
| Prepared                Pork Product  |   |                                                                                                                                                                 | 1.35   |   |   | 0.80 |   |   | 0.55 |   |   | 11.41 | % |   | 11.83 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                 | 0.28   |   |   | 0.23 |   |   | 0.05 |   |   | 7.39 | % |   | 10.45 | % |
| Total                                 |   | $                                                                                                                                                                    | 6.60   |   | $ | 5.30 |   | $ | 1.30 |   |   | 5.52 | % |   | 8.51 | % |

----

|                                  |   | **Production                by Segment****(in                metric tons)**                                                                                                                                                                                          |   |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Six                Months Ended****                 June                30,                ** |   |  **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                                                             |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |
| Chilled                Pork           |   |                                                                                                                                                                                                                                                                 | 43,743 |   |   | 19,317 |   |   | 24,426 |   |   | 126 | % |
| Frozen                Pork            |   |                                                                                                                                                                                                                                                                 | 31,125 |   |   | 31,111 |   |   | 14 |   |   | 0 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                                                                 | 6,945  |   |   | 4,608 |   |   | 2,337 |   |   | 51 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                                                                 | 5,451  |   |   | 2,872 |   |   | 2,579 |   |   | 90 | % |
| Total                                 |   |                                                                                                                                                                                                                                                                 | 87,264 |   |   | 57,908 |   |   | 29,356 |   |   | 51 | % |

**Additional      Operating Data**

|                                          |   | **Sales                by Distribution Channel****(U.S.                dollars in millions)**                                                                                          |   |
|-----------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                               |   | **Three                Months Ended****June                30, **                                                                                                                 |   | ** Six                Months Ended ****June                30, ** |   |
| **Distribution                Channel**       |   | **               2007              ** |   | **             2006             ** |   | **              2007           ** |   | **            2006              ** |   |
|                                          |   | Amount                                                                                                                                                                                 |   | Percent |   | Amount |   | Percent |   | Amount |   | Percent |   | Amount |   | Percent |   |
| Branded                stores                 |   | $                                                                                                                                                                                      | 29.8   |   |   | 46.9 | % | $ | 15.6 |   |   | 49.2 | % | $ | 55.9 |   |   | 46.8 | % | $ | 30.5 |   |   | 49.0 | % |
| Food                services distributors     |   |                                                                                                                                                                                   | 11.5   |   |   | 18.0 |   |   | 4.8 |   |   | 15.1 |   |   | 22.0 |   |   | 18.4 |   |   | 9.8 |   |   | 15.7 |   |
| Restaurants                and non-commercial |   |                                                                                                                                                                                   | 18.3   |   |   | 28.7 |   |   | 8.8 |   |   | 27.8 |   |   | 32.6 |   |   | 27.3 |   |   | 16.5 |   |   | 26.5 |   |
| Export                    |   |                                                                                                                                                                                   | 4.1    |   |   | 6.4 |   |   | 2.5 |   |   | 7.9 |   |   | 9.0 |   |   | 7.5 |   |   | 5.5 |   |   | 8.8 |   |
| Total                                         |   | $                                                                                                                                                                                      | 63.7   |   |   | 100.0 | % | $ | 31.7 |   |   | 100.0 | % | $ | 119.5 |   |   | 100.0 | % | $ | 62.3 |   |   | 100.0 | % |

|                                           |   | **Six                Months Ended** |   | **Year                Ended December                31,** |   |
|------------------------------------------------|--------|-------------------------------------|--------|-----------------------------------------------------------|--------|
|                                           |   | **June                30, 2007**    |   | **2006**                                                  |   | **2005** |   | **2004** |   |
| No.                of products                 |   |                                | 281    |                                                      |   | 229 |   |   | 168 |   |   | 125 |   |
| No.                of retail stores            |   |                                | 2,863  |                                                      |   | 2,721 |   |   | 2,100 |   |   | 978 |   |
| Expansion                of Market Coverage    |   |                                |   |                                                      |   |   |   |   |   |   |   |   |   |
| No.                of Provinces                |   |                                | 24     |                                                      |   | 24 |   |   | 24 |   |   | 23 |   |
| No.                of first-tier cities        |   |                                | 29     |                                                      |   | 29 |   |   | 29 |   |   | 23 |   |
| No.                of second-tier cities  |   |                                | 84     |                                                      |   | 75 |   |   | 44 |   |   | 36 |   |
| No.                of third-tier cities        |   |                                | 255    |                                                      |   | 226 |   |   | 142 |   |   | 109 |   |

----

**Liquidity      and Capital Resources**

----

|   **Bank**                                               |   | **Maximum                Credit****Availability** |        |  **Amount****Borrowed**** ** |   |   **Interest                Rate** |   |   **Maturity                Date** |   |
|--------------------------------------------------------------------|--------|---------------------------------------------------|-------------|----------------------------------------|--------|----------------------------------------------|--------|----------------------------------------------|--------|
|                                                               |   |                                              |        |                                   |   |                                         |   |                                         |   |   |   |   |   |
| Agriculture                Bank of China                           |   | $                                                 | 23,636,006  |                                   | $      | 2,494,912                                    |   |                                         | 7.34   | % |   | 09/10/2007 |   |
|                                                               |   |                                              |        |                                   |   | 2,626,223                                    |   |                                         | 7.34   |   |   | 12/25/2007 |   |
|                                                               |   |                                              |        |                                   |   | 919,178                                      |   |                                         | 7.34   |   |   | 12/29/2007 |   |
|                                                               |   |                                              |        |                                   |   |                                         |   |                                         |   |   |   |   |   |
| Industrial                and Commercial Bank of China             |   |                                              | 26,262,228  |                                   |   | 1,969,667                                    |   |                                         | 5.85   | % |   | 07/23/2007 |   |
|                                                               |   |                                              |        |                                   |   | 1,969,667                                    |   |                                         | 6.12   |   |   | 10/11/2007 |   |
|                                                               |   |                                              |        |                                   |   | 1,969,667                                    |   |                                         | 5.85   |   |   | 01/23/2008 |   |
|                                                               |   |                                              |        |                                   |   |                                         |   |                                         |   |   |   |   |   |
| China                Construction Bank                             |   |                                              | 11,818,003  |                                   |   | 2,626,223                                    |   |                                         | 6.12   | % |   | 01/10/2008 |   |
|                                                               |   |                                              |        |                                   |   | 2,363,601                                    |   |                                         | 6.12   |   |   | 01/17/2008 |   |
|                                                               |   |                                              |        |                                   |   |                                         |   |                                         |   |   |   |   |   |
| CITIC                Industrial Bank                               |   |                                              | 6,565,557   |                                   |   | 5,252,446                                    |   |                                         | 5.85   | % |   | 07/16/2007 |   |
|                                                               |   |                                              |        |                                   |   | 2,626,223                                    |   |                                         | 8.40   |   |   | 10/28/2007 |   |
|                                                               |   |                                              |        |                                   |   |                                         |   |                                         |   |   |   |   |   |
| Agriculture                Development Bank of China               |   |                                              | 63,029,348  |                                   |   | 3,939,333                                    |   |                                         | 5.85   | % |   | 07/03/2007 |   |
|                                                               |   |                                              |             |                                   |   | 2,626,223                                    |   |                                         | 5.85   |   |   | 07/17/2007 |   |
|                                                               |   |                                              |        |                                   |   |                                         |   |                                         |   |   |   |   |   |
| Shanghai                Pudong Development Bank of China           |   |                                              | 6,565,557   |                                   |   | 787,867                                      |   |                                         | 6.12   | % |   | 01/18/2008 |   |
|                                                               |   |                                              |        |                                   |   | 3,939,333                                    |   |                                         | 6.39   |   |   | 03/29/2008 |   |
|                                                               |   |                                              |        |                                   |   |                                         |   |                                         |   |   |   |   |   |
| Bank                of China                                       |   |                                              | 13,131,114  |                                   |   | -                                            |   |                                         |   |   |   |   |   |
|                                                               |   |                                              |        |                                   |   |                                         |   |                                         |   |   |   |   |   |
| Commercial                Bank of China                            |   |                                              | 2,626,223   |                                   |   | 2,626,223                                    |   |                                         | 6.57   | % |   | 06/19/2008 |   |
| Guangdong                Development Bank                          |   |                                              | 3,939,334   |                                   |   | -                                            |   |                                         |   |   |   |   |   |
|                                                               |   |                                              |        |                                   |   |                                         |   |                                         |   |   |   |   |   |
| City                Finance -short-term                            |   |                                              | -           |                                   |   | 26,262                                       |   |                                         | 0.00   | % |   | Extendable |   |
| Total                                                         |   | $                                                 | 157,573,370 |                                   | $      | 38,763,048                                   |   |                                         |   |   |   |   |   |
|                                                               |   |                                              |        |                                   |   |                                         |   |                                         |   |   |   |   |   |
| Canadian                Government Transfer Loan                   |   |                                              |        |                                   | $      | 1,707,605                                    |   |                                         | *****  |   |   | 05/15/2043 |   |
| Canadian                Government Transfer Loan - Current portion |   |                                              |        |                                   | $      | 145,671                                      |   |                                         | 6.02   | % |   | 05/15/2008 |   |
|                                                               |   |                                              |        |                                   |   |                                         |   |                                         |   |   |   |   |   |
| City                Finance                                        |   |                                              |        |                                   | $      | 135,250                                      |   |                                         | 0.00   | % |   | None |   |

----

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**Contractual      Commitments**

|                                         |   |            |   | **Payments                Due by Period****(in                thousands)** |   |
|----------------------------------------------|--------|-----------------|--------|----------------------------------------------------------------------------|--------|
|  Contractual                Obligations |   |  **Total** |   | **Less                Than****1                Year**                      |   |  **1-3                Years** |   |  **3-5                Years** |   | **More                Than****5                Years** |   |
| Long-term                debt obligations    |   | $               | 1,989  |                                                                       | $      | 146 |   | $ | 292 |   | $ | 292 |   | $ | 1,259 |   |
| Capital                lease obligations     |   |            | -      |                                                                       |   | - |   |   | - |   |   | - |   |   | - |   |
| Operating                lease obligations   |   |            | 670    |                                                                       |   | 263 |   |   | 407 |   |   | - |   |   | - |   |
| Purchase                obligations          |   |            | -      |                                                                       |   | - |   |   | - |   |   | - |   |   | - |   |
| Other                obligations             |   |            | -      |                                                                       |   | - |   |   | - |   |   | - |   |   | - |   |
| Total                                        |   | $               | 2,659  |                                                                       | $      | 409 |   | $ | 699 |   | $ | 292 |   | $ | 1,259 |   |

**Inflation      and Seasonality**

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

*Disclosures      About Market Risk. *

*Currency      Fluctuations and Foreign Currency Risk.*

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*Interest      Rate Risk.*

*Credit      Risk.*

**Item      4.**
**Controls      and Procedures**

*Disclosure      Controls and Procedures*

*Internal      Control Over *
*Financial*
*      Reporting*

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**ZHONGPIN      INC.**

**Part      II - Other Information**

**Item      1.    **
**Legal      Proceedings**

**Item      1A.**
**Risk      Factors**

*Recent      amendments to the corporate income tax law in the PRC may increase the income      taxes payable by our operating subsidiaries located in the PRC, which could      adversely affect our profitability.*

**Item      2.    **
**Unregistered      Sales of Equity Securities and Use of Proceeds**

**Item      3.    **
**Defaults      Upon Senior Securities**

**Item      4.**
**Submission      of Matters to a Vote of Security Holders**

**Item      5.    **
**Other      Information**

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**Item      6.     **
**Exhibits**

|   | The                exhibits required by this item are set forth on the Exhibit Index                attached                hereto. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

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**ZHONGPIN      INC.**

**Signatures**

|   |                                                                                                   |                             |
|--------|--------------------------------------------------------------------------------------------------------|----------------------------------|
|   | ZHONGPIN                  INC.                            (Company) |
|   |                                                                                                   |                             |
|   | Date:                August 9, 2007                                                                    |
|   |                                                                                                   |                             |
|        | By:                                                                                          | /s/ Xianfu              Zhu |
|   | Xianfu              Zhu                                                                                |
|   | Chief                Executive Officer                                                                 |
|   |                                   |                             |
|--------|----------------------------------------|----------------------------------|
|        | By:                          | /s/ Yuanmei              Ma |
|   | Yuanmei              Ma                |
|   | Chief                Financial Officer |

----

**Exhibit      Index**

| **Exhibit****Number** |   | **Exhibit Title**                                                                                                                     |
|-----------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                       |
| 31.1                  |   | Certification                of our Chief Executive Officer pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002. |
|                  |   |                                                                                                                                       |
| 31.2                  |   | Certification                of our Chief Financial Officer pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002. |
|                  |   |                                                                                                                                       |
| 32.1                  |   | Certification                of our Chief Executive Officer pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002. |
|                  |   |                                                                                                                                       |
| 32.2                  |   | Certification                of our Chief Financial Officer pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002. |

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