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SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2011
Segment Reporting [Abstract] 
SEGMENT INFORMATION
14.  SEGMENT INFORMATION

Tanke operates in four segments: organic trace mineral additives, functional regulation additives, herbal medicinal additives and other revenues. Management oversees each of these operations separately.

Organic trace mineral additives constitute the largest and fastest growing area of our business. These are various minerals added to animal feed to provide a balanced diet. Functional feed additives are widely used to enhance the properties of other products, improve feed efficiency and stimulate the rapid maturation of the immune system. Chinese herbal feed additives utilize traditional Chinese medicine theory to improve an animal’s digestion and appetite and to regulate the yin and yang balance of an animal’s health. Other revenue consists of the reselling of raw materials.

Property, equipment and other assets are shared and not tracked separately by segment. Administrative expenses are also not tracked by segment. Following is a breakdown of revenue and costs of sales by segment.

 

   
Three Months Ended
   
Six Months Ended
 
   
June 30,
    June 30,  
   
2011
   
2010
   
2011
   
2010
 
                         
Segment revenues
                       
Organic Trace Mineral Additives
  $ 3,939,129     $ 3,227,638     $ 8,801,243     $ 5,929,740  
Functional Regulation Additives
    948,663       781,688       1,658,775       1,196,671  
Herbal Medicinal Additives
    83,016       127,916       84,268       211,618  
Other
    19,035       135,186       387,027       268,078  
    $ 4,989,843     $ 4,272,428     $ 10,931,313     $ 7,606,107  
                                 
Segment costs of sales
                               
Organic Trace Mineral Additives
  $ 2,520,275     $ 2,057,493     $ 5,399,720     $ 3,657,626  
Functional Regulation Additives
    601,392       450,141       1,025,072       694,665  
Herbal Medicinal Additives
    74,878       119,763       75,674       149,628  
Other
    21,256       120,487       232,401       246,200  
    $ 3,217,801     $ 2,747,884     $ 6,732,867     $ 4,748,119  
                                 
Segment gross profit
                               
Organic Trace Mineral Additives
  $ 1,418,854     $ 1,170,145     $ 3,401,523     $ 2,272,114  
Functional Regulation Additives
    347,271       331,547       633,703       502,006  
Herbal Medicinal Additives
    8,138       8,153       8,594       61,990  
Other
    (2,221 )     14,699       154,626       21,878  
    $ 1,772,042     $ 1,524,544     $ 4,198,446     $ 2,857,988