Farmmi, Inc. (FAMI): History, Ownership, Mission, How It Works & Makes Money

When you look at Farmmi, Inc. (FAMI), a company rooted in the agricultural supply chain, do you see a struggling mushroom processor or a logistics player making a strategic pivot? Honestly, the numbers show a business in flux: the company's annual revenue for the fiscal year 2024 stood at $64.13 Million, which marked a significant drop from the prior year, so you have to ask what the new growth engine is. Still, the firm is aggressively expanding its logistics footprint, adding a new 183,000 square foot warehouse in New Jersey by September 2025, bringing their total U.S. warehousing capacity to 640,000 square feet-a defintely clear signal of where the real investment is going. This shift from a pure edible fungi supplier to a diversified logistics and agriculture entity is what makes Farmmi's history, ownership, and business model a must-read for any trend-aware investor right now.

Farmmi, Inc. (FAMI) History

You want to understand the foundation of Farmmi, Inc. (FAMI) to better assess its current trajectory, and that's smart. The company's history is a classic case of an established Chinese agricultural business adapting to global capital markets, a move that brought both significant funding and recent compliance challenges. Farmmi's roots in edible fungi production go back decades, but its current corporate structure is much newer.

Given Company's Founding Timeline

The company's operational history began long before its NASDAQ listing. The core business of processing and selling edible fungi, like Shiitake and Mu Er mushrooms, was established in the late 1990s, but the current Cayman Islands-incorporated entity is a 2015 creation.

Year established

The original agricultural business was established in 1998, while the current holding company, Farmmi, Inc., was incorporated in July 2015.

Original location

The primary operations and initial headquarters were in Lishui, Zhejiang, China.

Founding team members

The ultimate controlling shareholders and key leaders are Ms. Yefang Zhang, who has served as Chairwoman and CEO since July 2015, and her husband, Mr. Zhengyu Wang, a director and veteran in the business.

Initial capital/funding

The first major public funding event was the Initial Public Offering (IPO) on the NASDAQ Capital Market in February 2018, which raised $6,720,000 in gross proceeds.

Given Company's Evolution Milestones

The company's evolution shows a clear pivot from a domestic Chinese agricultural supplier to an international supply chain platform, especially with its recent aggressive expansion in the U.S. market. That US expansion is defintely a key focus for 2025.

Given Company's Transformative Moments

The most transformative moments for Farmmi have centered on its globalization and the recent, intense focus on maintaining its U.S. market presence and NASDAQ listing. The financial reality is that while the company is expanding assets, profitability remains a challenge.

The shift to a global supply chain platform is the biggest change. This wasn't just about exporting; it was about building a complete system, establishing U.S. subsidiaries and logistics hubs in key markets like Los Angeles and New Jersey. This physical expansion is what underpins its goal to export high-quality agricultural products from North America back to China and other markets, a true two-way street.

• NASDAQ Listing (2018): Moving from a private Chinese entity to a publicly traded U.S. company was the single most important financial pivot. It provided the $6.72 million in gross IPO proceeds and the capital-raising mechanism needed for global expansion.
• 2025 Compliance Actions: The 1-for-12 share consolidation in March 2025 was a critical, defensive move to avoid delisting from NASDAQ, which would have severely hampered its ability to raise capital and its global reputation. The company successfully regained compliance in April 2025.
• U.S. Logistics Build-Out (2024-2025): The strategic investment in U.S. warehousing is a clear action mapping to its new global mission. The lease of the 183,000 square foot New Jersey warehouse in August 2025, bringing the total U.S. footprint to 640,000 square feet, shows a commitment to controlling the supply chain end-to-end.
• Financial Headwinds in 2025: Despite the asset growth-total assets hit $230.43 million as of March 31, 2025-the company faces operational pressure. Sales for the half-year ended March 31, 2025, were $16.14 million, down significantly from the prior year, and the trailing 12-month earnings were negative -$5.3M. This highlights the execution risk inherent in its aggressive expansion.

To understand the philosophy driving these moves, you should look at the company's stated principles: Mission Statement, Vision, & Core Values of Farmmi, Inc. (FAMI).

Farmmi, Inc. (FAMI) Ownership Structure

Farmmi, Inc.'s ownership structure is highly concentrated in public hands, with a negligible percentage held by traditional institutional investors and company insiders. This means retail investors and other non-reporting entities hold nearly all the shares, which can lead to higher stock price volatility.

Farmmi, Inc.'s Current Status

Farmmi, Inc. is a publicly traded company, listed on the NASDAQ Stock Exchange under the ticker symbol FAMI. As of November 2025, the company's market capitalization stands at approximately $8.55 million, reflecting its small-cap status. The company completed a 1-for-12 reverse stock split in March 2025 to maintain compliance with NASDAQ's minimum bid price requirement, a key event to note when assessing share history. With 5.48 million shares outstanding, the float is small, which can amplify price movements both up and down. For a deeper dive into the financials, you should read Breaking Down Farmmi, Inc. (FAMI) Financial Health: Key Insights for Investors.

The company's operational performance through the trailing twelve months (TTM) ending March 31, 2025, shows total revenue of $43.83 million, but reported a net loss of approximately -$5.3 million. That's a tough environment for a small-cap stock, so be defintely mindful of the risk.

Farmmi, Inc.'s Ownership Breakdown

The company exhibits an extremely low level of institutional and insider ownership, a pattern often seen in micro-cap stocks with a high retail investor base. This structure suggests that outside fund managers and company executives have minimal skin in the game relative to the total outstanding shares.

Farmmi, Inc.'s Leadership

The company is steered by a small team, with significant control vested in the Chief Executive Officer, who has a long tenure with the company.

• Yefang Zhang: Serves as both Chairwoman and Chief Executive Officer (CEO), a dual role she has held since July 2015. This combined role gives her substantial influence over both strategic direction and day-to-day operations.
• Zhengyu Wang: A Director since February 2017, Mr. Wang also manages the business operations of the Forasen Group, which he co-owns with Ms. Zhang.
• Independent Directors: The board includes three independent directors: Hongdao Qian, Qinyi Fu, and Hui Ruan. This independent oversight is crucial for corporate governance, though the overall board size is small.
• Chenyang Wang: Also listed as a Director.

The average tenure for the board members is 5.4 years, showing a reasonably experienced group at the helm. The concentration of power in the CEO role is a governance factor you need to weigh against the company's strategic execution.

Farmmi, Inc. (FAMI) Mission and Values

Farmmi, Inc.'s core purpose transcends simply selling edible fungi; it centers on being a leading agricultural technology enterprise dedicated to building a global supply chain for sustainable, healthy products. This mission is currently playing out against a backdrop of financial pressure, with trailing twelve-month earnings as of March 31, 2025, showing a loss of -$5.3 million.

You're looking for the DNA of the company, what drives their long-term strategy beyond the quarterly report. Their stated values clearly map to food safety and global expansion, which is a big commitment for a company with a market capitalization of roughly $2 million as of November 2025.

Farmmi, Inc.'s Core Purpose

The company's core purpose is two-fold: to promote its key product, edible mushrooms, and related agricultural technology worldwide, and to build a robust, two-way global supply chain. This means not only distributing their own products, but also exporting high-quality agricultural goods from North America to major markets like China. That's a defintely complex logistical challenge.

Official Mission Statement

Farmmi's official mission is focused on becoming a significant player in the global food supply chain, emphasizing both technology and product quality. This is what guides their strategic moves, like establishing new logistics hubs in the U.S.

• Promote edible mushroom products and agriculture technology worldwide.
• Expand the global supply chain platform.
• Export high-quality agricultural products from North America to China and other major geographic markets.
• Advocate for sustainable, organic, green, and healthy agricultural products.

Vision Statement

While Farmmi, Inc. does not explicitly publish a separate, formal 'Vision Statement' distinct from its mission, its actions and stated aspirations point to a clear long-term goal. The vision is to be the trusted, high-volume supplier in the global food chain, leveraging technology and a vertically integrated model for quality control. They want to be the benchmark for safety and quality, which is why they invest in a network of standardized family farms and hold gold standard certifications like HACCP and BRC international food safety.

Here's the quick math on their current scale: the company reported $16.14 million in revenue for the half year ending March 31, 2025. To achieve their global vision, they need to turn that revenue into consistent profitability, which they haven't done yet. Mission Statement, Vision, & Core Values of Farmmi, Inc. (FAMI).

Farmmi, Inc. Slogan/Tagline

Farmmi, Inc. does not currently emphasize a single, public-facing corporate slogan or tagline in its investor or corporate materials. Instead, the company focuses on its established product brand names, primarily Forasen and Farmmi, which are popular across global markets including North America, Europe, and Asia.

The emphasis is on the brand's reputation as a trusted supplier of premium agricultural products, letting the product quality speak for itself rather than relying on a catchy phrase. This focus on tangible quality is a smart move, especially in the high-risk food sector.

Farmmi, Inc. (FAMI) How It Works

Farmmi, Inc. operates as a vertically integrated agricultural products supplier, primarily focusing on processing and distributing edible fungi globally. The company makes money by controlling the supply chain from standardized family farms to its certified processing facilities, then selling high-quality, packaged mushroom and other agricultural products to a diverse, international customer base both online and offline.

Farmmi, Inc.'s Product/Service Portfolio

Farmmi, Inc.'s Operational Framework

The company's operational framework is built on a 'farm-to-table' model, emphasizing control over quality and logistics to drive value. This model is crucial given the volatility in the agricultural sector, and it's how they managed a TTM Revenue of $43.83 million ending March 31, 2025, even while reporting TTM Earnings of -$5.3 million in the same period. Here's the quick math: managing costs is defintely a priority when your TTM Gross Profit is only $2.54 million.

• Controlled Sourcing: Manages a network of standardized family farms, primarily in China, for its core edible fungi products. This allows for strict control over food safety and quality right at the source, which is a major concern for global food importers.
• Certified Processing: Operates a processing facility that has achieved gold standard international food safety certifications, including HACCP and BRC. This facility handles the washing, slicing, and drying of raw mushrooms into marketable, long-shelf-life products.
• Global Distribution & Logistics: Utilizes a global supply chain platform, supported by strategic warehousing. The 2025 expansion in the US, including a new 183,000 square foot warehouse in New Jersey, brings their total US warehousing footprint to 640,000 square feet. This move directly improves supply chain efficiency and speeds up delivery across the US market.
• Omni-Channel Sales: Products are sold through traditional offline distribution channels (to wholesalers, restaurants, and retailers) and online via its Farmmi Jicai platform, ensuring broad market access.

If you want a deeper dive into the company's financial stability, you should read Breaking Down Farmmi, Inc. (FAMI) Financial Health: Key Insights for Investors.

Farmmi, Inc.'s Strategic Advantages

Farmmi's market success hinges on a few clear, actionable advantages that differentiate it from smaller, regional competitors. They are playing a long game focused on scale and quality assurance.

• Quality and Safety Certifications: Holding gold standard international food safety certifications (HACCP, BRC, QS) is a non-negotiable entry barrier for high-value export markets like North America and Europe. This immediately positions the company as a trusted, high-volume supplier.
• Integrated Supply Chain Control: Direct oversight of standardized family farms mitigates supply risk and ensures consistent product quality, a significant advantage over competitors relying solely on fragmented third-party sourcing.
• North American Logistics Footprint: The aggressive 2025 expansion of its US warehousing to 640,000 square feet is a clear strategic move. This infrastructure investment directly reduces shipping costs and cuts delivery times for US customers, making their product more competitive against local and other international suppliers.
• Product Diversification: The strategic move into corn and cotton leverages their existing logistics and supply chain expertise to capture new, large commodity markets, which helps balance the revenue stream against the more specialized edible fungi business.

Farmmi, Inc. (FAMI) How It Makes Money

Farmmi, Inc. generates revenue primarily through the sale of processed edible fungi products, such as Shiitake and Mu Er mushrooms, and secondarily through its bulk agricultural commodity trading business, which includes products like corn and cotton. The core business model is centered on sourcing, processing, branding, and distributing specialty agricultural goods, but the company has recently relied on the volatile, lower-margin commodity trading for a significant portion of its top line.

The company's trailing twelve months (TTM) revenue, as of March 31, 2025, stood at $43.83 Million, representing a sharp decline of -49.19% year-over-year. This significant contraction is the central financial reality you must consider.

Farmmi, Inc.'s Revenue Breakdown

While the precise 2025 TTM revenue split is not explicitly detailed in the latest public filings, the business operates on two distinct revenue pillars. We can approximate the mix based on the company's stated business activities: the stable, but currently declining, specialty food segment and the volatile commodity trading arm. Both streams show a decreasing trend in line with the overall -49.19% TTM revenue drop.

Here's the quick math: The edible fungi business, which includes products like Shiitake mushrooms, is the historical core, typically carrying higher gross margins but facing reduced market demand. Commodity trading, which involves high-volume, low-margin transactions, has been a significant, albeit volatile, revenue filler since its start in June 2021. Both segments are defintely under pressure.

Business Economics

The economics of Farmmi, Inc. are split between a value-added processing model and a pure trading model, which creates a complex and challenging cost structure. The company's overall Gross Profit Margin (GPM) for the TTM ending March 31, 2025, was a very thin 5.79%. That is a low margin for a food processing company and signals significant cost-of-goods-sold pressure, likely from the commodity trading volume or inefficient processing operations.

• Pricing Strategy: Edible fungi products are sold under brands like Lishui Shangeng and Farmmi Liangpin, suggesting a premium, brand-driven pricing model, but this is undermined by the low overall GPM. Commodity trading uses a market-price-plus-commission model, which is inherently low-margin and sensitive to global price fluctuations in corn and cotton.
• Main Cost Drivers: The primary cost driver is the raw material purchase price for both fungi and bulk commodities, followed by processing and logistics costs. The low GPM suggests they are not passing on cost increases effectively or are overpaying for raw materials.
• Inventory Turnover: The projected Inventory Turnover is expected to decrease to 9.38, which is a sign of slower sales velocity or increasing inventory stockpiles. Slow inventory turnover ties up capital, especially in a business dealing with perishable or commodity-priced goods.
• Customer Concentration: Historically, a significant portion of revenue came from a limited number of state-owned enterprises in China, which introduces a major concentration risk. Losing a key customer could instantly halve your revenue.

You need to understand that a low GPM of 5.79% leaves almost no buffer against operating expenses, which is why the company is reporting losses.

Farmmi, Inc.'s Financial Performance

The key financial metrics paint a picture of a company facing significant operational headwinds as of November 2025. The overall financial health is weak, despite a seemingly solid liquidity position.

• Profitability: The company reported a TTM Net Loss of -$5.33 Million (ending March 31, 2025). The Operating Margin is negative at -1.79%, meaning the company loses money even before accounting for interest and taxes.
• Efficiency: The Return on Equity (ROE) is deeply negative at -3.33%, indicating that management is destroying shareholder value with the capital they employ.
• Liquidity: The Current Ratio is 1.88, which is generally a healthy sign of liquidity, meaning current assets (like cash and receivables) are almost double the current liabilities. However, given the slow inventory and receivables turnover, the quality of those current assets needs scrutiny.
• Leverage: The Debt-to-Equity ratio is very low at 0.08, suggesting the company is not heavily reliant on debt financing. This low leverage is a positive factor, as it means they have room to take on debt if they find a profitable growth opportunity.

The financial takeaway is simple: the balance sheet is relatively clean, but the income statement is broken. They are not generating a profit from their core operations, which is the most critical issue. For a deeper dive into the company's long-term strategy, you can review their Mission Statement, Vision, & Core Values of Farmmi, Inc. (FAMI).

Farmmi, Inc. (FAMI) Market Position & Future Outlook

Farmmi, Inc. operates as a micro-cap player in the global agricultural products and edible fungi market, a sector projected to reach $86.6 billion by 2025. The company's future hinges on its ability to transition from a China-centric supplier to a globally integrated logistics and distribution provider, especially as its projected total revenue for the next fiscal year is expected to decrease to $50.9 million from a reported $64.13 million.

This is a high-volatility stock with a current market capitalization of just $8.45 million (as of November 14, 2025), so any strategic win or operational misstep will have an outsized impact. The core challenge is scaling the business while managing the financial risk, which currently includes a probability of distress under 36%. Breaking Down Farmmi, Inc. (FAMI) Financial Health: Key Insights for Investors

Competitive Landscape

Farmmi's competitive position is defined less by market share and more by its unique hybrid business model, combining agricultural supply chain management with an e-commerce platform. Because the edible fungi market is highly fragmented, and Farmmi's listed peers often operate in adjacent 'food products' or logistics niches, direct market share comparison is difficult to pin down with precision.

Here's the quick math: Farmmi's latest reported revenue is $64.13 million in an $86.6 billion global market, so its share is defintely less than 0.1%. Still, its integrated supply chain offers a key advantage over pure-play logistics or e-commerce rivals.

Opportunities & Challenges

The company's strategic focus for 2025 is clearly on expanding its logistics footprint in the lucrative U.S. market and diversifying its revenue streams beyond traditional edible fungi sales. The potential $10 million in annual orders from the Mazon Technology cooperation alone represents a significant boost to the Farmmi USA subsidiary.

But, to be fair, the projected decrease in net income applicable to common shares to about $1.5 million for 2025 suggests that operating costs or core product sales are under pressure, despite the new logistics business. This is a classic growth-stage trade-off: invest now, pay later.

Industry Position

Farmmi, Inc. is positioned as a small-cap, vertically integrated supplier and logistics provider in the Consumer Defensive sector, specifically the Packaged Foods industry. Its primary strength is the control it exerts over its product quality, from standardized family farms to its food traceability system, which is crucial for international exports.

• Vertical Integration: Controls quality from farm to consumer with a food traceability system.
• Geographic Diversification: Products are sold across China, the U.S., Japan, Canada, Europe, and the Middle East.
• Logistics Pivot: The 2025 U.S. East Coast expansion signals a strategic pivot to become a more significant logistics services provider, diversifying revenue beyond its core product line.
• Financial Headwinds: The company faces a challenging financial outlook with a projected decline in revenue and a low market cap, necessitating successful execution of its new logistics strategy to stabilize performance.

The next step is to closely track the revenue contribution from the new New Jersey warehouse and the Mazon Technology partnership in the coming quarters to see if the logistics strategy can offset the projected decline in core product sales.