**FORM      10-Q**

**xQUARTERLY      REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE **
**SECURITIES      EXCHANGE ACT OF 1934**

**oTRANSITION      REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE **
**SECURITIES      EXCHANGE ACT OF 1934**

| 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) |

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**ZHONGPIN      INC. **

**FORM      10-Q**

**INDEX**

| **Part                I**  |  **Financial              Information** | **Page**                                                                                                                                                                                |
|----------------------------|----------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                         |                                                                                                                                                                                    |   |
|                       | Item                1.                       | Unaudited                Financial Statements:                                                                                                                                          |   |
|                       |                                         |                                                                                                                                                                                    |   |
|                       |                                         | Consolidated                Balance Sheets as of September 30, 2007 (unaudited) and December                31,                2006                                                     | 2 |
|                       |                                         |                                                                                                                                                                                    |   |
|                       |                                         | Consolidated                Statements of Operations and Comprehensive Income (unaudited) for                the                three and nine months ended September 30, 2007 and 2006 | 3 |
|                       |                                         |                                                                                                                                                                                    |   |
|                       |                                         | Consolidated                Statement of Changes in Stockholders’ Equity (unaudited) for the nine                months ended September 30, 2007                                  |  4 |
|                       |                                         |                                                                                                                                                                                    |   |
|                       |                                         | Consolidated                Statements of Cash Flows (unaudited) for the nine months ended September                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                                                         | 24 |
|                       |                                         |                                                                                                                                                                                    |   |
|                       | 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                                           |

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**ZHONGPIN      INC.**

**Part      I – Financial Information**

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

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**ZHONGPIN      INC. **

**CONSOLIDATED      BALANCE SHEETS**

**(Amounts      in U.S. dollars)**

|                                                                                                                                          |   | **September 30, 2007** |        | **December 31, 2006** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-------------|---------------------------------|--------|
| **ASSETS**                                                                                                                                    |   | (Unaudited)                      |        |                            |   |
| Current                assets                                                                                                                 |   |                             |        |                            |   |   |   |
| Cash                and cash equivalents                                                                                                      |   | $                                | 36,714,734  |                            | $      | 21,692,814 |   |
| Accounts                receivable and other receivables                                                                                      |   |                             | 21,716,853  |                            |   | 13,471,450 |   |
| Purchase                deposits                                                                                                              |   |                             | 373,723     |                            |   | - |   |
| Prepaid                expenses and deferred charges                                                                                          |   |                             | 465,308     |                            |   | 200,436 |   |
| Inventories                                                                                                                                   |   |                             | 16,396,917  |                            |   | 10,077,479 |   |
| Tax                refund receivables                                                                                                         |   |                             | 1,574,021   |                            |   | 1,079,002 |   |
| Total                current assets                                                                                                           |   |                             | 77,241,556  |                            |   | 46,521,181 |   |
|                                                                                                                                          |   |                             |        |                            |   |   |   |
| Property,                plant and equipment (net)                                                                                            |   |                             | 45,964,124  |                            |   | 32,597,150 |   |
| Other                receivables                                                                                                              |   |                             | 4,054,827   |                            |   | 2,056,642 |   |
| Construction                contracts                                                                                                         |   |                             | 32,732,747  |                            |   | 12,016,823 |   |
| Intangible                assets                                                                                                              |   |                             | 16,849,397  |                            |   | 9,030,077 |   |
|                                                                                                                                          |   |                             |        |                            |   |   |   |
| Total                assets                                                                                                                   |   | $                                | 176,842,651 |                            | $      | 102,221,873 |   |
|                                                                                                                                          |   |                             |        |                            |   |   |   |
| **LIABILITIES                AND EQUITY**                                                                                                     |   |                             |        |                            |   |   |   |
| Current                liabilities                                                                                                            |   |                             |        |                            |   |   |   |
| Accounts                payable and other payables                                                                                            |   |                             | 30,598,365  |                            |   | 20,712,794 |   |
| Accrued                liabilities                                                                                                            |   |                             | 2,808,814   |                            |   | 1,597,557 |   |
| Short                term loans payable                                                                                                       |   |                             | 48,756,457  |                            |   | 23,845,198 |   |
| Taxes                payable                                                                                                                  |   |                             | 61,346      |                            |   | 378,705 |   |
| Deposits                from clients                                                                                                          |   |                             | 5,770,544   |                            |   | 683,814 |   |
| Research                and development grants payable                                                                                        |   |                             | 236,958     |                            |   | 248,572 |   |
| Long                term loans payable-current portion                                                                                        |   |                             | 145,671     |                            |   | 145,671 |   |
| Total                current liabilities                                                                                                      |   |                             | 88,378,155  |                            |   | 47,612,311 |   |
|                                                                                                                                          |   |                             |        |                            |   |   |   |
| Long                term loans payable                                                                                                        |   |                             | 1,844,740   |                            |   | 1,912,343 |   |
|                                                                                                                                          |   |                             |        |                            |   |   |   |
| Total                liabilities                                                                                                              |   |                             | 90,222,895  |                            |   | 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; 19,386,769 and                12,132,311shares issued and outstanding  |   |                             | 19,387      |                            |   | 12,133 |   |
| Additional                paid in capital                                                                                                     |   |                             | 52,724,502  |                            |   | 32,538,535 |   |
| Retained                earnings                                                                                                              |   |                             | 29,492,558  |                            |   | 18,456,884 |   |
| Accumulated                other comprehensive income                                                                                         |   |                             | 4,380,184   |                            |   | 1,682,767 |   |
| Total                equity                                                                                                                   |   |                             | 86,619,756  |                            |   | 52,697,219 |   |
|                                                                                                                                          |   |                             |        |                            |   |   |   |
| Total                liabilities and equity                                                                                                   |   | $                                | 176,842,651 |                            | $      | 102,221,873 |   |

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**ZHONGPIN      INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

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

|                                                       |   | **Three                Months Ended****             September                30,             ** |       | **Nine                Months Ended****           September                30,             ** |   |
|------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       |   | **2007**                                                                                                                                                                                                                          |       | **2006**                                                                                                                                                                                                             |   | **2007** |   | **2006** |   |
| Revenues                                                   |   |                                                                                                                                                                                                                              |       |                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Sales                revenues                              |   | $                                                                                                                                                                                                                                 | 71,312,992 |                                                                                                                                                                                                                 | $      | 33,829,525 |   | $ | 190,783,230 |   | $ | 96,100,380 |   |
| Cost                of sales                               |   |                                                                                                                                                                                                                              | 61,641,917 |                                                                                                                                                                                                                 |   | 28,674,782 |   |   | 165,192,668 |   |   | 81,641,757 |   |
| Gross                profit                                |   |                                                                                                                                                                                                                              | 9,671,075  |                                                                                                                                                                                                                 |   | 5,154,743 |   |   | 25,590,562 |   |   | 14,458,623 |   |
|                                                       |   |                                                                                                                                                                                                                              |       |                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Operating                expenses                          |   |                                                                                                                                                                                                                              |       |                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| General                and administrative expenses         |   |                                                                                                                                                                                                                              | 1,857,047  |                                                                                                                                                                                                                 |   | 2,528,877 |   |   | 4,801,207 |   |   | 5,007,525 |   |
| Non-cash                compensation expenses              |   |                                                                                                                                                                                                                              | -          |                                                                                                                                                                                                                 |   | - |   |   | 4,134,573 |   |   | - |   |
| Operating                expenses                          |   |                                                                                                                                                                                                                              | 1,067,048  |                                                                                                                                                                                                                 |   | 883,696 |   |   | 3,311,409 |   |   | 2,403,932 |   |
| Total                operating expenses                    |   |                                                                                                                                                                                                                              | 2,924,095  |                                                                                                                                                                                                                 |   | 3,412,573 |   |   | 12,247,189 |   |   | 7,411,457 |   |
|                                                       |   |                                                                                                                                                                                                                              |       |                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Income                from operations                      |   |                                                                                                                                                                                                                              | 6,746,980  |                                                                                                                                                                                                                 |   | 1,742,170 |   |   | 13,343,373 |   |   | 7,047,166 |   |
|                                                       |   |                                                                                                                                                                                                                              |       |                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Other                income (expense)                      |   |                                                                                                                                                                                                                              |       |                                                                                                                                                                                                                 |   |   |   |   |  |   |   |   |   |
| Interest                income                             |   |                                                                                                                                                                                                                              | 42,932     |                                                                                                                                                                                                                 |   | 23,456 |   |   | 169,856 |   |   | 268,794 |   |
| Other                income (expenses)                     |   |                                                                                                                                                                                                                              | 78,591     |                                                                                                                                                                                                                 |   | (724 | ) |   | 209,420 |   |   | 35,512 |   |
| Allowances                income                           |   |                                                                                                                                                                                                                              | 36,540     |                                                                                                                                                                                                                 |   | 6,664 |   |   | 39,989 |   |   | 1,233,509 |   |
| Exchange                gain                               |   |                                                                                                                                                                                                                              | 22,748     |                                                                                                                                                                                                                 |   | 15,020 |   |   | 28,895 |   |   | 33,048 |   |
| Interest                expense                            |   |                                                                                                                                                                                                                              | (701,616   | )                                                                                                                                                                                                                    |   | (300,855 | ) |   | (1,772,957 | ) |   | (908,670 | ) |
| Total                other income (expense)                |   |                                                                                                                                                                                                                              | (520,805   | )                                                                                                                                                                                                                    |   | (                256,439 | ) |   | (1,324,797 | ) |   | 662,193 |   |
|                                                       |   |                                                                                                                                                                                                                              |       |                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Net                income before taxes                     |   |                                                                                                                                                                                                                              | 6,226,175  |                                                                                                                                                                                                                 |   | 1,485,731 |   |   | 12,018,576 |   |   | 7,709,359 |   |
| Provision                for income taxes                  |   |                                                                                                                                                                                                                              | 370,509    |                                                                                                                                                                                                                 |   | 124,625 |   |   | 982,902 |   |   | 441,815 |   |
|                                                       |   |                                                                                                                                                                                                                              |       |                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Net                income after taxes                      |   |                                                                                                                                                                                                                              | 5,855,666  |                                                                                                                                                                                                                 |   | 1,361,106 |   |   | 11,035,674 |   |   | 7,267,544 |   |
| Minority                interest                           |   |                                                                                                                                                                                                                              | -          |                                                                                                                                                                                                                 |   | 2,390 |   |   | - |   |   | 21,685 |   |
|                                                       |   |                                                                                                                                                                                                                              |       |                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Net                income                                  |   | $                                                                                                                                                                                                                                 | 5,855,666  |                                                                                                                                                                                                                 | $      | 1,358,716 |   | $ | 11,035,674 |   | $ | 7,245,859 |   |
|                                                       |   |                                                                                                                                                                                                                              |       |                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment     |   | $                                                                                                                                                                                                                                 | 1,162,162  |                                                                                                                                                                                                                 | $      | 479,389 |   | $ | 2,697,417 |   | $ | 744,480 |   |
| Comprehensive                income                        |   | $                                                                                                                                                                                                                                 | 7,017,828  |                                                                                                                                                                                                                 | $      | 1,838,105 |   | $ | 13,733,091 |   | $ | 7,990,339 |   |
|                                                       |   |                                                                                                                                                                                                                              |       |                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Basic                earnings per common share             |   | $                                                                                                                                                                                                                                 | 0.26       |                                                                                                                                                                                                                 | $      | 0.07 |   | $ | 0.55 |   | $ | 0.41 |   |
| Diluted                earnings per common share           |   | $                                                                                                                                                                                                                                 | 0.25       |                                                                                                                                                                                                                 | $      | 0.06 |   | $ | 0.52 |   | $ | 0.33 |   |
| Basic                weighted average shares outstanding   |   |                                                                                                                                                                                                                              | 19,259,575 |                                                                                                                                                                                                                 |   | 11,752,568 |   |   | 15,604,355 |   |   | 11,752,568 |   |
| Diluted                weighted average shares outstanding |   |                                                                                                                                                                                                                              | 23,421,587 |                                                                                                                                                                                                                 |   | 23,237,568 |   |   | 21,259,956 |   |   | 21,911,457 |   |

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**ZHONGPIN      INC. **

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

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

|                                                                           |   |        Preferred                Stock        |       |         Common                Stock         |   | AdditionalPaid                In |   | Retained       |       | AccumulatedOtherComprehensive |   |     |   |
|--------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|------------|-----------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|----------------|------------|-------------------------------|--------|----------|--------|
|                                                                           |   | Shares                                                                                                             |       | Par value                                                                                                              |   | Shares                           |   | Par value |       | Capital                       |   | Earnings |   | Income |   | Total |   |
| December                31, 2006                                               |   |                                                                                                               | 6,900,000  |                                                                                                                        | $      | 6,900                            |   |           | 12,132,311 |                          | $      | 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 -                warrant exercise |   |                                                                                                               | -          |                                                                                                                        |   | **-**                            |   |           | 3,479,458  |                          |   | 3,479    |   |   | 16,007,032 |   |   | **-** |   |   | - |   |   | 16,010,511 |   |
| Warrant                expense                                                 |   |                                                                                                               | **-**      |                                                                                                                        |   | **-**                            |   |           | **-**      |                          |   | **-**    |   |   | 15,950 |   |   | **-** |   |   | **-** |   |   | 15,950 |   |
| One                time non-cash compensation adjustment                       |   |                                                                                                               | -          |                                                                                                                        |   | -                                |   |           | -          |                          |   | -        |   |   | 4,134,573 |   |   | - |   |   | - |   |   | 4,134,573 |   |
| Stock                option compensation expense                               |   |                                                                                                               | -          |                                                                                                                        |   | -                                |   |           | -          |                          |   | -        |   |   | 28,412 |   |   | - |   |   | - |   |   | 28,412 |   |
| Net                income for the period                                       |   |                                                                                                               | -          |                                                                                                                        |   | -                                |   |           | -          |                          |   | -        |   |   | - |   |   | 11,035,674 |   |   | - |   |   | 11,035,674 |   |
| Foreign                currency translation adjustment                         |   |                                                                                                               | -          |                                                                                                                        |   | -                                |   |           | -          |                          |   | -        |   |   | - |   |   | - |   |   | 2,697,417 |   |   | 2,697,417 |   |
| Balance                September 30, 2007                                      |   |                                                                                                               | 3,125,000  |                                                                                                                        | $      | 3,125                            |   |           | 19,386,769 |                          | $      | 20,587   |   | $ | 52,724,502 |   | $ | 29,492,558 |   | $ | 4,380,184 |   | $ | 86,619,756 |   |

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**ZHONGPIN      INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

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

|                                                                                                            |   | **Nine Months Ended September 30,** |                       |
|-----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|----------------------------|
|                                                                                                            |   | **2007**                                                |                       | **2006** |   |
| Cash                flows from operating activities:                                                            |   |                                                    |                       |   |   |   |   |
| Net                income                                                                                       |   | $                                                       | 11,035,674                 |   | $ | 7,245,859 |   |
| Adjustments                to reconcile net income to net cash provided by (used in)                operations: |   |                                                    |                       |   |   |   |   |
| Minority                interest                                                                                |   |                                                    | -                          |   |   | 21,685 |   |
| Depreciation                                                                                                    |   |                                                    | 1,318,451                  |   |   | 650,132 |   |
| Amortization                                                                                                    |   |                                                    | 247,493                    |   |   | 84,246 |   |
| Exchange                gain (loss)                                                                             |   |                                                    | -                          |   |   | (33,048 | ) |
| Provision                for allowance for bad debt                                                             |   |                                                    | -                          |   |   | (76 | ) |
| Warrants                issued for services                                                                     |   |                                                    | 15,950                     |   |   | 12,760 |   |
| One-time                non-cash compensation adjustments                                                       |   |                                                    | 4,134,573                  |   |   | - |   |
| Non-cash                compensation adjustment                                                                 |   |                                                    | 28,412                     |   |   | - |   |
|                                                                                                            |   |                                                    |                       |   |   |   |   |
| Changes                in operating assets and liabilities:                                                     |   |                                                    |                       |   |   |   |   |
| Accounts                receivable and other receivables                                                        |   |                                                    | (9,431,574                 | ) |   | (3,482,695 | ) |
| Purchase                deposits                                                                                |   |                                                    | (366,173                   | ) |   | (275,523 | )  |
| Prepaid                expense and deferred charges                                                             |   |                                                    | (254,292                   | ) |   | (33,237 | ) |
| Inventories                                                                                                     |   |                                                    | (5,799,057                 | ) |   | (7,782,998 | ) |
| Tax                refunds receivable                                                                           |   |                                                    | (443,004                   | ) |   | (279,514 | ) |
| Accounts                payable and Other payable                                                               |   |                                                    | 8,933,316                  |   |   | 96,754 |   |
| Accrued                liabilities                                                                              |   |                                                    | 1,130,281                  |   |   | - |   |
| Taxes                payable                                                                                    |   |                                                    | (325,604                   | ) |   | (973,392 | ) |
| Deposits                from clients                                                                            |   |                                                    | 4,956,464                  |   |   | (82,716 | ) |
| Net                cash provided by (used in) operating activities                                              |   |                                                    | 15,180,910                 |   |   | (4,831,763 | ) |
|                                                                                                            |   |                                                    |                       |   |   |   |   |
| Cash                flows from investing activities:                                                            |   |                                                    |                       |   |   |   |   |
| Construction                in progress                                                                         |   |                                                    | (27,345,849                | ) |   | (                6,725,968 | ) |
| Additions                to fixed assets                                                                        |   |                                                    | (5,627,248                 | ) |   | (5,070,015 | ) |
| Additions                to intangible assets                                                                   |   |                                                    | (                7,556,552 | ) |   | (3,976,049 | ) |
| Net                cash used in investing activities                                                            |   |                                                    | (40,529,649                | ) |   | (15,772,032 | ) |
|                                                                                                            |   |                                                    |                       |   |   |   |   |
| Cash                flows from financing activities:                                                            |   |                                                    |                       |   |   |   |   |
| Repayment                of bank overdraft                                                                      |   |                                                    | -                          |   |   | (619,579 | ) |
| Repayment                of bank notes                                                                          |   |                                                    | (                65,214    | ) |   | - |   |
| Proceeds                from short-term loans                                                                   |   |                                                    | 44,214,892                 |   |   | 24,390,081 |   |
| Repayment                of short-term loans                                                                    |   |                                                    | (20,737,958                | ) |   | (21,435,425 | ) |
| Repayment                of long-term loans                                                                     |   |                                                    | (146,188                   | ) |   | (154,497 | ) |
| Proceeds                from preferred stock                                                                    |   |                                                    | -                          |   |   | 23,110,703 |   |
| Proceeds                from exercise of warrants                                                               |   |                                                    | 16,010,511                 |   |   | - |   |
| Net                cash provided by financing activities                                                        |   |                                                    | 39,276,043                 |   |   | 25,291,283 |   |
|                                                                                                            |   |                                                    |                       |   |   |   |   |
| Effect                of rate changes on cash                                                                   |   |                                                    | 1,094,616                  |   |   | 777,605 |   |
| Increase                (decrease) in cash and cash equivalents                                                 |   |                                                    | 15,021,920                 |   |   | 5,465,093 |   |
| Cash                and cash equivalents, beginning of period                                                   |   |                                                    | 21,692,814                 |   |   | 10,142,394 |   |
| Cash                and cash equivalents, end of period                                                         |   | $                                                       | 36,714,734                 |   | $ | 15,607,487 |   |
|                                                                                                            |   |                                                    |                       |   |   |   |   |
| Supplemental                disclosures of cash flow information:                                               |   |                                                    |                       |   |   |   |   |
| Cash                paid for interest                                                                           |   | $                                                       | 1,791,177                  |   | $ | 901,642 |   |
| Cash                paid for income taxes                                                                       |   | $                                                       | 673,165                    |   | $ | 313,540 |   |

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

| 1. | ORGANIZATION                AND NATURE OF OPERATIONS |
|----|------------------------------------------------------|

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

| 1. | ORGANIZATION                AND NATURE OF OPERATIONS                (continued) |
|----|---------------------------------------------------------------------------------|

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

| 1. | ORGANIZATION                AND NATURE OF OPERATIONS                (continued) |
|----|---------------------------------------------------------------------------------|

| **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%                                       |
|                                                               |   |                                     |   |                                                    |   |                                          |
| 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%                                 |
|                                                               |   |                                     |   |                                                    |   |                                          |
| Tianjin                Zhongpin Food Company Limited               |   | PRC/Sept.                14, 2007        |   | 5,000,000                RMB(                $664,699 ) |   |  100.00%                                 |

**BASIS      OF PRESENTATION **

----

**ZHONGPIN      INC.**

**NOTES      TO CONSOLIATED FINANCIAL STATEMENTS**

|   |   |
|--------|--------|
| 2. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES                (continued) |
|----|--------------------------------------------------------------------------------------|

**FISCAL      YEAR **

**MINORITY      INTEREST IN SUBSIDIARIES **

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

**CONTROL      BY PRINCIPAL STOCKHOLDERS **

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

|   |   |
|--------|--------|
| 2. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES                (continued) |
|----|--------------------------------------------------------------------------------------|

**START-UP      COSTS **

**USE      OF ESTIMATES **

**SIGNIFICANT      ESTIMATES **

**CASH      EQUIVALENTS **

**ACCOUNTS      RECEIVABLE **

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

|   |   |
|--------|--------|
| 2. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES                (continued) |
|----|--------------------------------------------------------------------------------------|

**INVENTORIES      **

**LAND      USE RIGHTS **

**REVENUE      RECOGNITION**

**EARNINGS      PER SHARE **

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

|   |   |
|--------|--------|
| 2. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES                (continued) |
|----|--------------------------------------------------------------------------------------|

|                                                                                                               |   | Three                  Months EndedSeptember                  30,     |       | Nine                  months Ended    September                  30,      |   |
|--------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|------------|------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                               |   | 2007                                                                                      |       | 2006                                                                                                                   |   | 2007 |   | 2006 |   |
|                                                                                                               |   |  (Unaudited)                                                                         |       |  (Unaudited)                                                                                                      |   | (Unaudited) |   | (Unaudited)  |   |
| NUMERATOR                  FOR BASIC AND DILUTED EPS                                                               |   |                                                                                      |       |                                                                                                                   |   |   |   |   |   |   |   |   |   |
| Net                  income (numerator for Diluted EPS)                                                            |   | $                                                                                         | 5,855,666  |                                                                                                                   | $      | 1,358,716 |   | $ | 11,035,674 |   | $ | 7,245,859 |   |
| Net                  income allocated to preferred stock                                                           |   |                                                                                      | (819,793   | )                                                                                                                      |   | (502,619 | ) |   | (2,410,191 | ) |   | (2,484,708 | ) |
| Net                  income to common stockholders (Basic)                                                         |   | $                                                                                         | 5,035,873  |                                                                                                                   | $      | 856,097 |   | $ | 8,625,483 |   | $ | 4,761,151 |   |
|                                                                                                               |   |                                                                                      |       |                                                                                                                   |   |   |   |   |   |   |   |   |   |
| DENOMINATORS                  FOR BASIC AND DILUTED EPS                                                            |   |                                                                                      |       |                                                                                                                   |   |   |   |   |   |   |   |   |   |
| Common                  stock outstanding after recapitalization and 1:35.349 reverse stock                  split |   |                                                                                      | 19,259,575 |                                                                                                                   |   | 11,752,568 |   |   | 15,604,355 |   |   | 11,752,568 |   |
| DENOMINATOR                  FOR BASIC EPS                                                                         |   |                                                                                      | 19,259,575 |                                                                                                                   |   | 11,752,568 |   |   | 15,604,355 |   |   | 11,752,568 |   |
| Add:                  Weighted average preferred as if converted                                                   |   |                                                                                      | 3,125,000  |                                                                                                                   |   | 6,900,000 |   |   | 4,359,249 |   |   | 6,133,333 |   |
| Add:                  Weighted average stock warrants outstanding                                                  |   |                                                                                      | 1,037,012  |                                                                                                                   |   | 4,585,000 |   |   | 915,331 |   |   | 4,025,556 |   |
| DENOMINATOR                  FOR DILUTED EPS                                                                       |   |                                                                                      | 23,421,587 |                                                                                                                   |   | 23,237,568 |   |   | 21,259,956 |   |   | 21,911,457 |   |
|                                                                                                               |   |                                                                                      |       |                                                                                                                   |   |   |   |   |   |   |   |   |   |
| EPS –                  Basic                                                                            |   | $                                                                                         | 0.26       |                                                                                                                   | $      | 0.07 |   | $ | .055 |   | $ | 0.41 |   |
| EPS –                  Diluted                                                                          |   | $                                                                                         | 0.25       |                                                                                                                   | $      | 0.06 |   | $ | 0.52 |   | $ | 0.33 |   |

**SHIPPING      AND HANDLING COSTS**

**ADVERTISING      COSTS**

**RESEARCH      AND DEVELOPMENT COSTS**

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

|   |   |
|--------|--------|
| 2. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES                (continued) |
|----|--------------------------------------------------------------------------------------|

**PROPERTY      AND EQUIPMENT **

**OPERATING      LEASES **

**INCOME      TAXES **

| 3. | BUSINESS                ACQUISITIONS |
|----|--------------------------------------|

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

|   |   |
|--------|--------|
| 3. | BUSINESS                ACQUISITIONS (continued) |
|----|--------------------------------------------------|

| 4. | ACCOUNTS                RECEIVABLE AND OTHER RECEIVABLES |
|----|----------------------------------------------------------|

|                                   |   | September 30, 2007 |       | December 31, 2006 |   |
|----------------------------------------|--------|------------------------------|------------|-----------------------------|--------|
| Accounts                receivable     |   | $                            | 22,020,236 |                        | $      | 13,763,260 |   |
| Other                receivables       |   |                         | 4,179,811  |                        |   | 2,176,858 |   |
| Allowance                for bad debts |   |                         | (428,367   | )                           |   | (412,026 | ) |
|                                   |   | $                            | 25,771,680 |                        | $      | 15,528,092 |   |
|                                   |   |                         |       |                        |   |   |   |
| Current                                |   | $                            | 21,716,853 |                        | $      | 13,471,450 |   |
| Non-current                            |   |                         | 4,054,827  |                        |   | 2,056,642 |   |
|                                   |   | $                            | 25,771,680 |                        | $      | 15,528,092 |   |

| 5. | INVENTORIES |
|----|-------------|

|                                                 |   | September 30, 2007 |       | December 31, 2006 |   |
|------------------------------------------------------|--------|------------------------------|------------|-----------------------------|--------|
| Raw                materials                         |   | $                            | 1,383,132  |                        | $      | 307,202 |   |
| Low                value consumables & packaging |   |                         | 1,009,466  |                        |   | 401,177 |   |
| Work-in-progress                                     |   |                         | 2,764,851  |                        |   | 487,930 |   |
| Finished                goods                        |   |                         | 11,239,468 |                        |   | 8,881,170 |   |
| Net                inventories                       |   | $                            | 16,396,917 |                        | $      | 10,077,479 |   |

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

|   |   |
|--------|--------|
| 6. | PROPERTY,                PLANT AND EQUIPMENT |
|----|----------------------------------------------|

|                                          |   | September 30, 2007 |       | December 31, 2006 |   |
|-----------------------------------------------|--------|------------------------------|------------|-----------------------------|--------|
| Machinery                and equipment        |   | $                            | 17,912,945 |                        | $      | 12,453,177 |   |
| Furniture                and office equipment |   |                         | 639,787    |                        |   | 434,128 |   |
| Motor                vehicles                 |   |                         | 881,792    |                        |   | 416,479 |   |
| Buildings                                     |   |                         | 31,286,109 |                        |   | 22,584,113 |   |
| Subtotal                                      |   | $                            | 50,720,633 |                        |   | 35,887,897 |   |
| Less:                Acquisition gain         |   |                         | (85,533    | )                           |   | (92,510 | ) |
| Less:                accumulated depreciation |   |                         | (4,670,976 | )                           |   | (3,198,237 | ) |
| Net                property and equipment     |   | $                            | 45,964,124 |                        | $      | 32,597,150 |   |
| Depreciation                expense           |   | $                            | 1,329,342  |                        | $      | 973,618 |   |

| 7. | INTANGIBLE                ASSETS |
|----|----------------------------------|

|                                    |   | September 30, 2007 |       | December 31, 2006 |   |
|-----------------------------------------|--------|------------------------------|------------|-----------------------------|--------|
| Land                use rights          |   | $                            | 17,331,112 |                        | $      | 9,250,410 |   |
| Accumulated                amortization |   |                         | (481,715   | )                           |   | (220,333 | ) |
|                                    |   | $                            | 16,849,397 |                        | $      | 9,030,077 |   |
| Amortization                expense     |   | $                            | 247,493    |                        | $      | 127,449 |   |

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

| 8. | CONSTRUCTION                IN PROGRESS |
|----|-----------------------------------------|

|   Construction                Project                           |   | Date orEstimated DatePut in Service(1) |                         |   September 30, 2007 |   |   December 31, 2006 |   |
|---------------------------------------------------------------------------|--------|------------------------------------------------------------|------------------------------|------------------------------------------|--------|-----------------------------------------|--------|
|                                                                      |   |                                                       |                         |                                     |   |                                    |   |   |   |   |
| Production                line for chilled and frozen pork (in Zhumadian) |   |                                                       | December 2007           |                                     | $      | 6,787,073                               |   | $ | 9,313,544 |   |
| Production                line for chilled and frozen pork (in Anyang)    |   |                                                       | March                2008    |                                     |   | 12,175,845                              |   |   | 1,161,339 |   |
| Land                use right of Industrial Park No.4 land                |   |                                                       | March                2008    |                                     |   | 1,413,967                               |   |   | 970,147 |   |
| Production                line for prepared pork (in industrial plant)    |   |                                                       | November                2007 |                                     |   | 2,764,381                               |   |   | 542,493 |   |
| Logistic                Software                                          |   |                                                       | December 2007           |                                     |   | 30,463                                  |   |   | 29,300 |   |
| Production                Line for chilled and frozen pork (in Luoyang)   |   |                                                       | December                2008 |                                     |   | 5,923,171                               |   |   | - |   |
| Logistic                Hub and Cooling Storage                           |   |                                                       | May                2008      |                                     |   | 3,637,847                               |   |   | - |   |
|                                                                      |   |                                                       |                         |                                     | $      | 32,732,747                              |   | $ | 12,016,823 |   |

| (1) | Represents                the date on which all regulatory permits and approvals have been, or                are expected to be, received and the project has been, or is                expected to be, placed in service. In certain cases, construction of                a project may be substantially completed and the project may be                operational during a testing period prior to such                date. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**SHORT-TERM      LOANS **

**LONG-TERM      LOANS **

|                                         |   | September 30, 2007 |            | December 31, 2006 |   |
|----------------------------------------------|--------|------------------------------|------------|-----------------------------|--------|
| Short-Term                Loans Payable      |   | $                            | 48,756,457 |                             | $      | 23,845,198 |  |
| Total                Long-Term Loans Payable |        |                              | 1,990,411  |                             |        | 2,058,014 |  |
|                                         |   | $                            | 50,746,868 |                             | $      | 25,903,212 |   |

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

| 9. | LOANS                PAYABLE (continued) |
|----|------------------------------------------|

| 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                           |   |   | 1,334,891 |   |
|                                                             |   | $      | 1,990,411 |   |

| 10. | COMMITMENTS                AND CONTINGENCIES |
|-----|----------------------------------------------|

**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**

| 11. | ALLOWANCES                INCOME |
|-----|----------------------------------|

|                              |   | Three                  Months Ended  September                  30, |   | Nine                  Months EndedSeptember                  30, |   |
|-----------------------------------|--------|-------------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|
|                              |   | 2007                                                                          |   | 2006                                                             |   | 2007 |   | 2006 |   |
| Allowance                  income |   | $                                                                             | 36,540 |                                                             | $      | 6,664 |   | $ | 39,989 |   | $ | 1,233,509 |   |

| 12. | FAIR                VALUE OF FINANCIAL INSTRUMENTS |
|-----|----------------------------------------------------|

| 13. | NEW                ACCOUNTING PRONOUNCEMENTS |
|-----|----------------------------------------------|

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

| 13. | NEW                ACCOUNTING PRONOUNCEMENTS                (continued) |
|-----|-------------------------------------------------------------------------|

| 14. | PREFERRED                STOCK |
|-----|--------------------------------|

*Dividends*

*Preference      on Liquidation*

*Voting*

*Appoint      and Elect a Director*

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

| 14. | PREFERRED                STOCK (continued) |
|-----|--------------------------------------------|

*Conversion      Right*

*Automatic      Conversion*

*Protective      Provisions*

| 15. | WARRANTS |
|-----|----------|

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

| 15. | WARRANTS                (continued) |
|-----|-------------------------------------|

|     |   | Exercise                  Price |                           | Number                  Outstanding |   | Weighted                  Average                  Exercise                  Price |   | Weighted                  Average                  Life - Years |   |
|----------|--------|---------------------------------|--------------------------------|-------------------------------------|--------|------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|
| Warrants |   | $                               | 4.00                  - $10.00 |                                |   | 2,040,338                                                                          |   | $                                                               | 4.91   |   |   | 3.34 |   |
| Options  |   | $                               | 9.20                           |                                |   | 130,000                                                                            |   | $                                                               | 9.20   |   |   | 4.90 |   |

|     |   | Exercise                Price |                         | Number                Outstanding |   | Weighted                Average                Exercise                Price |   |
|----------|--------|-------------------------------|------------------------------|-----------------------------------|--------|------------------------------------------------------------------------------|--------|
| Warrants |   | $                             | 4.00                - $10.00 |                              |   | 2,040,338                                                                    |   | $ | 4.91 |   |
| Options  |   |                          | N/A                          |                              |   | None                                                                         |   |   | N/A |   |

| 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**

| 16. | SEGMENT                REPORTING |
|-----|----------------------------------|

|                                  |   | **Sales                by Segment****(U.S.                dollars in millions)**                                                                                                                                                   |   |
|---------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Three                Months Ended****               September                30,            ** |   |  **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                                |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                                    |        |   |   |  |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                                                                                                                                                                       | 37.01  |   | $ | 11.98 |   | $ | 25.03 |   |   | 209 | % |
| Frozen                Pork            |   |                                                                                                                                                                                                                                    | 24.78  |   |   | 15.88 |   |   | 8.90 |   |   | 56 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                                    | 6.72   |   |   | 3.72 |   |   | 3.00 |   |   | 81 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                                    | 2.80   |   |   | 2.25 |   |   | 0.55 |   |   | 24 | % |
| Total                                 |   | $                                                                                                                                                                                                                                       | 71.31  |   | $ | 33.83 |   | $ | 37.48 |   |   | 111 | % |

|                                  |   | **Sales                by Segment****(U.S.                dollars in millions)**                                                                                                                                                  |   |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Nine                months Ended****               September                30,            ** |   | **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                               |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                                                                                                                                                                      | 98.37  |   | $ | 32.91 |   | $ | 65.46 |   |   | 199 | % |
| Frozen                Pork            |   |                                                                                                                                                                                                                                   | 67.27  |   |   | 48.27 |   |   | 19.00 |   |   | 39 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                                   | 18.55  |   |   | 10.47 |   |   | 8.08 |   |   | 77 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                                   | 6.59   |   |   | 4.45 |   |   | 2.14 |   |   | 48 | % |
| Total                                 |   | $                                                                                                                                                                                                                                      | 190.78 |   | $ | 96.10 |   | $ | 94.68 |   |   | 99 | % |

----

**ZHONGPIN        INC.**

**NOTES        TO CONSOLIATED FINANCIAL STATEMENTS**

| 16. | SEGMENT                REPORTING (continued) |
|-----|----------------------------------------------|

|                                  |   | **Operating                Income by Segment****(U.S.                dollars in millions)**                                                                            |   |
|---------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   |  **Three                Months Ended****         September                30,       ** |   |   **Change** |   | **Operating****Margin**** Three                Months****  Ended                September 30,    ** |   |
|                                  |   | **2007**                                                                                                                                                                    |   | **2006** |   | **2007/2006** |   | **2007** |   | **2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                                                                                                           | 3.45   |   | $ | 0.59 |   | $ | 2.86 |   |   | 9.33 | % |   | 4.95 | % |
| Frozen                Pork            |   |                                                                                                                                                                        | 1.99   |   |   | 0.69 |   |   | 1.30 |   |   | 8.01 | % |   | 4.33 | % |
| Prepared                Pork Product  |   |                                                                                                                                                                        | 0.97   |   |   | 0.30 |   |   | 0.67 |   |   | 14.43 | % |   | 8.06 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                        | 0.34   |   |   | 0.16 |   |   | 0.18 |   |   | 12.14 | % |   | 7.11 | % |
| Total                                 |   | $                                                                                                                                                                           | 6.75   |   | $ | 1.74 |   | $ | 5.01 |   |   | 9.47 | % |   | 5.14 | % |

|                                  |   | **Operating                Income by Segment****(U.S.                dollars in millions)**                                                                           |   |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   |  **Nine                Months Ended****         September                30,       ** |   |   **Change** |   | **Operating                Margin****Nine                Months  Ended**** September                30,      ** |   |
|                                  |   | **2007**                                                                                                                                                                   |   | **2006** |   | **2007/2006** |   | **2007** |   | **2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                                                                                                          | 6.38   |   | $ | 2.32 |   | $ | 4.06 |   |   | 6.49 | % |   | 7.05 | % |
| Frozen                Pork            |   |                                                                                                                                                                       | 4.03   |   |   | 3.23 |   |   | 0.80 |   |   | 5.99 | % |   | 6.69 | % |
| Prepared                Pork Product  |   |                                                                                                                                                                       | 2.32   |   |   | 1.10 |   |   | 1.22 |   |   | 12.51 | % |   | 10.51 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                       | 0.62   |   |   | 0.39 |   |   | 0.23 |   |   | 9.41 | % |   | 8.76 | % |
| Total                                 |   | $                                                                                                                                                                          | 13.35  |   | $ | 7.04 |   | $ | 6.31 |   |   | 7.00 | % |   | 7.33 | % |

| 17. | SUBSEQUENT                EVENTS |
|-----|----------------------------------|

----

**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**

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**Overview**

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**Critical      Accounting Policies **

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

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

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

**Results      of Operations **

----

|                                                         |   | **Three                Months Ended****September                30,** |    | **Nine                months Ended****September                30,** |   |
|--------------------------------------------------------------|--------|-----------------------------------------------------------------------|---------|----------------------------------------------------------------------|--------|
|                                                         |   | **2007**                                                              |    | **2006**                                                             |   | **2007** |   | **2006** |   |
|                                                         |   | (U.S.                dollars in thousands)                            |    |
|                                                         |   |                                                                  |
| Revenues:                                                    |   |                                                                  |    |                                                                 |   |   |   |   |   |   |   |   |   |
| Sales                revenues                           |   | $                                                                     | 71,313  |                                                                 | $      | 33,830 |   | $ | 190,783 |   | $ | 96,100 |   |
| Cost                of sales                            |   |                                                                  | 61,642  |                                                                 |   | 28,675 |   |   | 165,193 |   |   | 81,642 |   |
| Gross                profit                             |   |                                                                  | 9,671   |                                                                 |   | 5,155 |   |   | 25,590 |   |   | 14,458 |   |
|                                                         |   |                                                                  |    |                                                                 |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                           |   |                                                                  |    |                                                                 |   |   |   |   |   |   |   |   |   |
| General                and administrative expenses      |   |                                                                  | 1,857   |                                                                 |   | 2,529 |   |   | 4,801 |   |   | 5,007 |   |
| One                time non-cash compensation adjustment     |   |                                                                  | — |                                                                 |   | — |   |   | 4,135 |   |   | — |   |
| Operating                expenses                       |   |                                                                  | 1,607   |                                                                 |   | 884 |   |   | 3,311 |   |   | 2,404 |   |
| Total                operating expenses                 |   |                                                                  | 2,924   |                                                                 |   | 3,413 |   |   | 12,247 |   |   | 7,411 |   |
|                                                         |   |                                                                  |    |                                                                 |   |   |   |   |   |   |   |   |   |
| Income                from operations                   |   |                                                                  | 6,747   |                                                                 |   | 1,742 |   |   | 13,343 |   |   | 7,047 |   |
|                                                         |   |                                                                  |    |                                                                 |   |   |   |   |   |   |   |   |   |
| Other                income (expense):                       |   |                                                                  |    |                                                                 |   |   |   |   |   |   |   |   |   |
| Interest                income                          |   |                                                                  | 43      |                                                                 |   | 24 |   |   | 170 |   |   | 269 |   |
| Other                income                             |   |                                                                  | 79      |                                                                 |   | (1 | ) |   | 210 |   |   | 35 |   |
| Allowance                income                         |   |                                                                  | 36      |                                                                 |   | 7 |   |   | 40 |   |   | 1,234 |   |
| Exchange                gain (loss)                     |   |                                                                  | 23      |                                                                 |   | 15 |   |   | 29 |   |   | 33 |   |
| Interest                expense                         |   |                                                                  | (702    | )                                                                    |   | (301 | ) |   | (1,773 | ) |   | (909 | ) |
| Total                other income (expense)                  |   |                                                                  | (521    | )                                                                    |   | (256 | ) |   | (1,324 | ) |   | 662 |   |
|                                                         |   |                                                                  |    |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                income before taxes                  |   |                                                                  | 6,226   |                                                                 |   | 1,486 |   |   | 12,019 |   |   | 7,709 |   |
| Provision                for income taxes               |   |                                                                  | 370     |                                                                 |   | 125 |   |   | 983 |   |   | 441 |   |
|                                                         |   |                                                                  |    |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                income after taxes                   |   |                                                                  | 5,856   |                                                                 |   | 1,361 |   |   | 11,036 |   |   | 7,268 |   |
| Minority                interest in gain                |   |                                                                  | — |                                                                 |   | 2 |   |   | -- |   |   | 22 |   |
| Net                income                               |   |                                                                  | 5,856   |                                                                 |   | 1,359 |   |   | 11,036 |   |   | 7,246 |   |
| Foreign                currency translation adjustment  |   |                                                                  | 1,162   |                                                                 |   | 479 |   |   | 2,697 |   |   | 744 |   |
| Comprehensive                income                     |   | $                                                                     | 7,018   |                                                                 | $      | 1,838 |   | $ | 13,733 |   | $ | 7,990 |   |

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

*Revenue.*

*Cost      of sales.*

----

*General      and administrative expenses.*

*Operating      expenses. *

*Interest      expense.*

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

*Income      Taxes.*

***Comparison      of Nine months Ended September 30, 2007 and September 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.*

***Pro      Forma Results of Operations***

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|                                                         |   | **Nine                Months Ended****September                30,** |       |
|--------------------------------------------------------------|--------|----------------------------------------------------------------------|------------|
|                                                         |   | **2007**                                                             |       | **2006** |   |
|                                                         |   | (U.S.                dollars in thousands)                           |       |
|                                                         |   |                                                                 |       |   |   |   |   |
| Revenues:                                                    |   |                                                                 |       |   |   |   |   |
| Sales                revenues                           |   | $                                                                    | 190,783    |   | $ | 96,100 |   |
| Cost                of sales                            |   |                                                                 | 165,193    |   |   | 81,642 |   |
| Gross                profit                             |   |                                                                 | 25,590     |   |   | 14,458 |   |
|                                                         |   |                                                                 |       |   |   |   |   |
| Operating                expenses:                           |   |                                                                 |       |   |   |   |   |
| General                and administrative expenses      |   |                                                                 | 4,801      |   |   | 5,007 |   |
| Operating                expenses                       |   |                                                                 | 3,311      |   |   | 2,404 |   |
| Total                operating expenses                 |   |                                                                 | 8,112      |   |   | 7,411 |   |
|                                                         |   |                                                                 |       |   |   |   |   |
| Income                from operations                   |   |                                                                 | 17,478     |   |   | 7,047 |   |
|                                                         |   |                                                                 |       |   |   |   |   |
| Other                income (expense):                       |   |                                                                 |       |   |   |   |   |
| Interest                income                          |   |                                                                 | 170        |   |   | 269 |   |
| Other                income                             |   |                                                                 | 290        |   |   | 36 |   |
| Allowance                income                         |   |                                                                 | 40         |   |   | 1,234 |   |
| Exchange                gain (loss)                     |   |                                                                 | 29         |   |   | 33 |   |
| Interest                expense                         |   |                                                                 | (1,773     | ) |   | (909 | ) |
| Total                other income (expense)                  |   |                                                                 | (1,325     | ) |   | 662 |   |
|                                                         |   |                                                                 |       |   |   |   |   |
| Net                income before taxes                  |   |                                                                 | 16,153     |   |   | 7,209 |   |
| Provision                for income taxes               |   |                                                                 | 9,831      |   |   | 442 |   |
|                                                         |   |                                                                 |       |   |   |   |   |
| Net                income after taxes                   |   |                                                                 | 15,170     |   |   | 7,267 |   |
| Minority                interest in gain (loss)         |   |                                                                 | —    |   |   | 22 |   |
| Net                income                               |   |                                                                 | 15,170     |   |   | 7,245 |   |
| Foreign                currency translation adjustment  |   |                                                                 | 2,697      |   |   | 744 |   |
| Comprehensive                income                     |   |                                                                 | 17,867     |   |   | 7,989 |   |
|                                                         |   |                                                                 |       |   |   |   |   |
| Basic                earnings per common share               |   | $                                                                    | 0.76       |   | $ | 0.41 |   |
| Diluted                earnings per common share             |   | $                                                                    | 0.71       |   | $ | 0.33 |   |
| Basic                weighted average shares outstanding     |   |                                                                 | 15,604,355 |   |   | 11,752,568 |   |
| Diluted                weighted average shares outstanding   |   |                                                                 | 21,259,956 |   |   | 21,911,457 |   |

----

**Segment      Information**

|                                  |   | **Sales                by Segment****(U.S.                dollars in millions)**  |   |
|---------------------------------------|--------|----------------------------------------------------------------------------------------|--------|
|                                  |   | **Three                Months Ended****September                30,**                  |   |  **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                               |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                   |        |   |   |  |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                      | 37.01  |   | $ | 11.98 |   | $ | 25.03 |   |   | 209 | % |
| Frozen                Pork            |   |                                                                                   | 24.78  |   |   | 15.88 |   |   | 8.90 |   |   | 56 | % |
| Prepared                Pork Products |   |                                                                                   | 6.72   |   |   | 3.72 |   |   | 3.00 |   |   | 81 | % |
| Vegetables                and Fruits  |   |                                                                                   | 2.80   |   |   | 2.25 |   |   | 0.55 |   |   | 24 | % |
| Total                                 |   | $                                                                                      | 71.31  |   | $ | 33.83 |   | $ | 37.48 |   |   | 111 | % |

----

|                                  |   | **Sales                by Segment****(in                metric tons)**                                                                                                                                                             |   |
|---------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Three                Months Ended****              September                30,             ** |   |  **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                                |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                                                                                                                                                                       | 21,348 |   | $ | 9,727 |   | $ | 11,621 |   |   | 119 | % |
| Frozen                Pork            |   |                                                                                                                                                                                                                                    | 15,039 |   |   | 13,409 |   |   | 1,630 |   |   | 12 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                                    | 3,756  |   |   | 2,416 |   |   | 1,340 |   |   | 55 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                                    | 5,257  |   |   | 4,347 |   |   | 910 |   |   | 21 | % |
| Total                                 |   | $                                                                                                                                                                                                                                       | 45,400 |   | $ | 29,899 |   | $ | 15,501 |   |   | 52 | % |

|                                  |   | **Operating                Income by Segment****(U.S.                dollars in millions)**                                                                      |   |
|---------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Three                Months Ended****         September                30,       ** |   |  **Change** |   | **Operating****Margin****Three                Months****    Ended                September 30,   ** |   |
|                                  |   | **2007**                                                                                                                                                              |   | **2006** |   | **2007/2006** |   | **2007** |   | **2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                                                                                                     | 3.45   |   | $ | 0.59 |   | $ | 2.86 |   |   | 9.33 | % |   | 4.95 | % |
| Frozen                Pork            |   |                                                                                                                                                                  | 1.99   |   |   | 0.69 |   |   | 1.30 |   |   | 8.01 | % |   | 4.33 | % |
| Prepared                Pork Product  |   |                                                                                                                                                                  | 0.97   |   |   | 0.30 |   |   | 0.67 |   |   | 14.43 | % |   | 8.06 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                  | 0.34   |   |   | 0.16 |   |   | 0.18 |   |   | 12.14 | % |   | 7.11 | % |
| Total                                 |   | $                                                                                                                                                                     | 6.75   |   | $ | 1.74 |   | $ | 5.01 |   |   | 9.47 | % |   | 5.14 | % |

|                                  |   | **Production                by Segment****(in                metric tons)**                                                                                                                                                                             |   |
|---------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Three Months Ended****                 September 30,                ** |   | **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                                                     |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   |                                                                                                                                                                                                                                                         | 21,700 |   |   | 9,693 |   |   | 12,007 |   |   | 124 | % |
| Frozen                Pork            |   |                                                                                                                                                                                                                                                         | 16,721 |   |   | 13,475 |   |   | 3,246 |   |   | 24 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                                                         | 3,779  |   |   | 2,458 |   |   | 1,321 |   |   | 54 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                                                         | 5,948  |   |   | 4,226 |   |   | 1,722 |   |   | 41 | % |
| Total                                 |   |                                                                                                                                                                                                                                                         | 48,148 |   |   | 29,852 |   |   | 18,296 |   |   | 61 | % |

----

|                                  |   | **Sales                by Segment****(U.S.                dollars in millions)**                                                                                                                                                  |   |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Nine                Months Ended****               September                30,            ** |   | **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                               |   | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                                                                                                                                                                      | 98.37  |   | $ | 32.91 |   | $ | 65.46 |   |   | 199 | % |
| Frozen                Pork            |   |                                                                                                                                                                                                                                   | 67.27  |   |   | 48.27 |   |   | 19.00 |   |   | 39 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                                   | 18.55  |   |   | 10.47 |   |   | 8.08 |   |   | 77 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                                   | 6.59   |   |   | 4.45 |   |   | 2.14 |   |   | 48 | % |
| Total                                 |   | $                                                                                                                                                                                                                                      | 190.78 |   | $ | 96.10 |   | $ | 94.68 |   |   | 99 | % |

|                                  |   | **Sales                by Segment****(in                metric tons)**                                                                                                                                                            |    |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                  |   | **Nine                Months Ended****              September                30,             ** |    |  **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                               |    | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   |                                                                                                                                                                                                                                   | 65,091  |   |   | 28,441 |   |   | 36,650 |   |   | 129 | % |
| Frozen                Pork            |   |                                                                                                                                                                                                                                   | 46,027  |   |   | 42,375 |   |   | 3,652 |   |   | 9 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                                   | 10,442  |   |   | 6,919 |   |   | 3,523 |   |   | 51 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                                   | 9,927   |   |   | 6,818 |   |   | 3,109 |   |   | 46 | % |
| Total                                 |   |                                                                                                                                                                                                                                   | 131,487 |   |   | 84,553 |   |   | 46,934 |   |   | 56 | % |

|                                  |   | **Operating                Income by Segment****(U.S.                dollars in millions)**                                                                     |   |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Nine                Months Ended****         September                30,       ** |   | **Change** |   | **Operating                Margin****Nine                Months  Ended**** September                30,      ** |   |
|                                  |   | **2007**                                                                                                                                                             |   | **2006** |   | **2007/2006** |   | **2007** |   | **2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   | $                                                                                                                                                                    | 6.38   |   | $ | 2.32 |   | $ | 4.06 |   |   | 6.49 | % |   | 7.05 | % |
| Frozen                Pork            |   |                                                                                                                                                                 | 4.03   |   |   | 3.23 |   |   | 0.80 |   |   | 5.99 | % |   | 6.69 | % |
| Prepared                Pork Product  |   |                                                                                                                                                                 | 2.32   |   |   | 1.10 |   |   | 1.22 |   |   | 12.51 | % |   | 10.51 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                 | 0.62   |   |   | 0.39 |   |   | 0.23 |   |   | 9.41 | % |   | 8.76 | % |
| Total                                 |   | $                                                                                                                                                                    | 13.35  |   | $ | 7.04 |   | $ | 6.31 |   |   | 7.00 | % |   | 7.33 | % |

----

|                                  |   | **Production                by Segment****(in                metric tons)**                                                                                                                                                                            |    |
|---------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                  |   | **Nine Months Ended****                 September 30,                ** |    |  **Net                Change** |   | **Percentage****Change** |   |
|                                  |   | **2007**                                                                                                                                                                                                                                                    |    | **2006** |   | **2007/2006** |   | **2007/2006** |   |
| Pork                and Pork Products |   |                                                                                                                                                                                                                                                        |    |   |   |   |   |   |   |   |   |   |   |
| Chilled                Pork           |   |                                                                                                                                                                                                                                                        | 65,443  |   |   | 29,010 |   |   | 36,433 |   |   | 126 | % |
| Frozen                Pork            |   |                                                                                                                                                                                                                                                        | 47,846  |   |   | 44,586 |   |   | 3,260 |   |   | 7 | % |
| Prepared                Pork Products |   |                                                                                                                                                                                                                                                        | 10,724  |   |   | 7,066 |   |   | 3,658 |   |   | 52 | % |
| Vegetables                and Fruits  |   |                                                                                                                                                                                                                                                        | 11,399  |   |   | 7,098 |   |   | 4,301 |   |   | 61 | % |
| Total                                 |   |                                                                                                                                                                                                                                                        | 135,412 |   |   | 87,760 |   |   | 47,652 |   |   | 54 | % |

**Additional      Operating Data**

|                                          |   | **Sales                by Distribution Channel****(U.S.                dollars in millions)**                                                                                     |   |
|-----------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                          |   |  **Three                Months Ended September 30,**                                                                                                                              |   |  **Nine                Months Ended September 30,** |   |
| **Distribution                Channel**       |   | **               2007              ** |   | **             2006             ** |   | **              2007           ** |   | **           2006              ** |   |
|                                          |   | Amount                                                                                                                                                                                 |   | Percent |   | Amount |   | Percent |   | Amount |   | Percent |   | Amount |   | Percent |   |
| Branded                stores                 |   | $                                                                                                                                                                                      | 32.5   |   |   | 45.6 | % | $ | 15.7 |   |   | 46.5 | % | $ | 88.4 |   |   | 46.4 | % | $ | 46.2 |   |   | 48.1 | % |
| Food                services distributors     |   |                                                                                                                                                                                   | 13.1   |   |   | 18.4 |   |   | 6.2 |   |   | 18.3 |   |   | 35.1 |   |   | 18.4 |   |   | 16.0 |   |   | 16.6 |   |
| Restaurants                and non-commercial |   |                                                                                                                                                                                   | 20.9   |   |   | 29.3 |   |   | 9.3 |   |   | 27.4 |   |   | 53.5 |   |   | 28.0 |   |   | 25.8 |   |   | 26.8 |   |
| Export                                        |   |                                                                                                                                                                                   | 4.8    |   |   | 6.7 |   |   | 2.6 |   |   | 7.8 |   |   | 13.8 |   |   | 7.2 |   |   | 8.1 |   |   | 8.5 |   |
| Total                                         |   | $                                                                                                                                                                                      | 71.3   |   |   | 100.0 | % | $ | 33.8 |   |   | 100.0 | % | $ | 190.8 |   |   | 100.0 | % | $ | 96.1 |   |   | 100.0 | % |

|                                                 |   | **            Year                Ended December                31,             ** |   | **Nine Months Ended** |   |
|------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                 |   | **2004**                                                                                                                                                                                                        |   | **2005**                        |   | **2006** |   | **September 30, 2007** |   |
| No.                of products                       |   |                                                                                                                                                                                                            | 125    |                            |   | 168 |   |   | 229 |   |   | 298 |   |
| No.                of retail stores                  |   |                                                                                                                                                                                                            | 978    |                            |   | 2,100 |   |   | 2,721 |   |   | 2,902 |   |
| Expansion                of Market Coverage          |   |                                                                                                                                                                                                            |   |                            |   |   |   |   |   |   |   |   |   |
| No.                of Provinces                      |   |                                                                                                                                                                                                            | 23     |                            |   | 24 |   |   | 24 |   |   | 24 |   |
| No.                of first-tier cities              |   |                                                                                                                                                                                                            | 23     |                            |   | 29 |   |   | 29 |   |   | 29 |   |
| No.                of second-tier cities   |   |                                                                                                                                                                                                            | 36     |                            |   | 44 |   |   | 75 |   |   | 89 |   |
| No.                of third-tier cities              |   |                                                                                                                                                                                                            | 109    |                            |   | 142 |   |   | 226 |   |   | 267 |   |

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**Liquidity      and Capital Resources**

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| **Bank**                                                                 |   | **Maximum ****Credit****Availability** |        | **Amount ****Borrowed**** ** |   | **Interest Rate** |   | **Maturity Date** |   |
|--------------------------------------------------------------------------|--------|---------------------------------------------|-------------|----------------------------------------|--------|------------------------|--------|------------------------|--------|
| Agriculture                Bank of China                                 |   | $                                           | 23,965,490  |                                   | $      | 2,662,832              |   |                   | 7.34   | % |   | 12/25/2007 |   |
|                                                                     |   |                                        |        |                                   |   | 931,991                |   |                   | 7.34   |   |   | 12/29/2007 |   |
|                                                                     |   |                                        |        |                                   |   |                   |   |                   |   |   |   |   |   |
| Industrial                and Commercial Bank of China                   |   |                                        | 26,628,322  |                                   |   | 1,997,124              |   |                   | 6.12   | % |   | 10/11/2007 |   |
|                                                                     |   |                                        |        |                                   |   | 1,997,124              |   |                   | 6.12   |   |   | 01/23/2008 |   |
|                                                                     |   |                                        |        |                                   |   | 1,997,124              |   |                   | 5.85   |   |   | 01/23/2008 |   |
|                                                                     |   |                                        |        |                                   |   |                   |   |                   |   |   |   |   |   |
| China                Construction Bank                                   |   |                                        | 11,982,745  |                                   |   | 2,662,832              |   |                   | 6.12   | % |   | 01/10/2008 |   |
|                                                                     |   |                                        |        |                                   |   | 2,396,549              |   |                   | 6.12   |   |   | 01/17/2008 |   |
|                                                                     |   |                                        |        |                                   |   |                   |   |                   |   |   |   |   |   |
| CITIC                Industrial Bank                                     |   |                                        | 6,657,080   |                                   |   | 2,662,832              |   |                   | 8.40   |   |   | 10/28/2007 |   |
|                                                                     |   |                                        |        |                                   |   |                   |   |                   |   |   |   |   |   |
| Agriculture                Development Bank of China                     |   |                                        | 63,907,973  |                                   |   | 7,988,497              |   |                   | 7.29   | % |   | 06/26/2008 |   |
|                                                                     |   |                                        |             |                                   |   | 13,314,161             |   |                   | 7.29   |   |   | 06/28/2008 |   |
|                                                                     |   |                                        |        |                                   |   |                   |   |                   |   |   |   |   |   |
| Shanghai                Pudong development Bank of China                 |   |                                        | 6,657,080   |                                   |   | 798,850                |   |                   | 6.12   | % |   | 01/18/2008 |   |
|                                                                     |   |                                        |        |                                   |   | 3,994,248              |   |                   | 6.39   |   |   | 03/29/2008 |   |
|                                                                     |   |                                        |        |                                   |   |                   |   |                   |   |   |   |   |   |
| Bank                of China                                             |   |                                        | 13,314,161  |                                   |   | -                      |   |                   |   |   |   |   |   |
|                                                                     |   |                                        |        |                                   |   |                   |   |                   |   |   |   |   |   |
| Commercial                Bank of China                                  |   |                                        | 2,662,832   |                                   |   | 2,662,832              |   |                   | 6.57   | % |   | 06/19/2008 |   |
| Guangdong                Development Bank                                |   |                                        | 3,994,248   |                                   |   | -                      |   |                   |   |   |   |   |   |
|                                                                     |   |                                        |        |                                   |   |                   |   |                   |   |   |   |   |   |
| China                Communication Bank                                  |   |                                        | 2,662,832   |                                   |   | 2,662,832              |   |                   | 6.52   | % |   | 11/22/2007 |   |
|                                                                     |   |                                        |        |                                   |   |                   |   |                   |   |   |   |   |   |
| City                Finance – short-term                           |   |                                        | -           |                                   |   | 26,628                 |   |                   | 0.00   | % |   | Extendable |   |
| Total                                                               |   | $                                           | 162,432,763 |                                   | $      | 48,756,457             |   |                   |   |   |   |   |   |
|                                                                     |   |                                        |        |                                   |   |                   |   |                   |   |   |   |   |   |
| Canadian                Government Transfer Loan                         |   |                                        |        |                                   | $      | 1,707,604              |   |                   | *****  |   |   | 05/15/2043 |   |
| Canadian                Government Transfer Loan – Current portion |   |                                        |        |                                   | $      | 145,671                |   |                   | 6.02   | % |   | 05/15/2008 |   |
|                                                                     |   |                                        |        |                                   |   |                   |   |                   |   |   |   |   |   |
| City                Finance                                              |   |                                        |        |                                   | $      | 137,136                |   |                   | 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    |   | $               | 1,990  |                                                                       | $      | 146 |   | $ | 292 |   | $ | 292 |   | $ | 1,260 |   |
| Capital                lease obligations     |   |            | -      |                                                                       |   | - |   |   | - |   |   | - |   |   | - |   |
| Operating                lease obligations   |   |            | 604    |                                                                       |   | 263 |   |   | 341 |   |   | - |   |   | - |   |
| Purchase                obligations          |   |            | -      |                                                                       |   | - |   |   | - |   |   | - |   |   | - |   |
| Other                obligations             |   |            | -      |                                                                       |   | - |   |   | - |   |   | - |   |   | - |   |
| Total                                        |   | $               | 2,594  |                                                                       | $      | 409 |   | $ | 633 |   | $ | 292 |   | $ | 1,260 |   |

**Inflation      and Seasonality**

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

*Disclosures      About Market Risk. *

*Currency      Fluctuations and Foreign Currency Risk.*

*Interest      Rate Risk.*

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*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**

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**ZHONGPIN      INC.**

**Signatures**

| Zhongpin                Inc. |
|------------------------------|
| (Company)                    |
|                         |   |
| Date:                        | November                9, 2007 |
|                         |   |
|                         |   |
| By:                          | /s/                Xianfu Zhu |
|                         | Xianfu                Zhu |
|                         | Chief                Executive Officer |
|                         |   |
| By:                          | /s/                Yuanmei Ma |
|                         | Yuanmei                Ma |
|                         | Chief                Financial Officer |

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**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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