China Organic Announces Agreement With Major Songyuan City Retail Distribution System

Exhibit 99.2

China Organic Announces Agreement With Major Songyuan City Retail Distribution

System

Agreement Targeting Fast-Growing Middle Class Market Segment to Generate $4

Million Within Calendar Year 2007

China Organic Agriculture, Inc. (OTCBB:CNOA), a growth-driven agricultural and

products company leading China's organic foods revolution, today announced that

the Company has reached a milestone 3-year retail distribution agreement with

Shunda Grain and Oil Company of Songyuan City, one of the largest cities in the

northeastern province of Jilin.

The agreement with Shunda Grain and Oil is the latest validation of CNOA's

stated strategic initiatives to expand market share by gaining new partnerships

with major retail distribution system partners in China and other emerging

economies in Asia.

The agreement is expected to contribute revenues of 30 million Yuan, equivalent

to approximately USD $4 million within calendar year 2007. The agreement states

that Shunda Grain and Oil will become one of CNOA's authorized retailers in the

supermarket chain store industry, selling "ErMaPao" award-winning series of

products to the Fuyu region with more than 2.8 million consumers.

"China Organic continues expand revenues and earnings from an ever-growing list

of agreements with some of China's largest retail distribution systems," said

Huizhi Xiao, Chairman of China Organic Agriculture. "This agreement as well as

other major retail distributors such as Suguo and Hualian will only help to

increase our growth as we look to move forward with expanding our distribution

systems and broaden our share of the large rice market in Songyuan City."

Shunda Grain and Oil joins a growing network of large retailers that CNOA has

established over the past several months including two of China's largest retail

chains Nanjing Suguo Supermarkets and Hulian Hypermarkets of Beijing with annual

revenues $3 billion and $780 million respectively.

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