Guangzhao Industrial Forest Biotechnology Group says it is planning to enter the business of selling, marketing and distributing organic agricultural products like vegetables, fruit, rice and edible oil.

To achieve that, the company says it will enter into a sales and marketing agency agreement with Shihua Co (SCL), a company wholly-owned by the controlling shareholders of Guangzhao.

Incorporated in China in 1999, SCL has about 11 years of operating track record. Leveraging on the biotechnological expertise of Madam Su and Mr. Song, SCL specialises in the production and sale of different organic agricultural products, in the domestic and export markets. Its established list of clients includes Walmart, the largest supermarket chain in the US.

At the initial stage, Guangzhao intends to sell and distribute organic vegetables to various supermarkets, wholesalers and other distributors in Singapore. In the longer run, there are plans to expand the business in terms of product range and geographical locations.

According to Datamonitor in December 2009, the organic food market in Asia Pacific has grown at a compound annual growth rate of 15.9% over a 5-year period, reaching a total value of US$2.1 billion ($2.7 billion) in 2009.