Abstract
Research Background
China' s feed market experienced a hard time in 2007. Hog farms suffered a
substantial reduction of hog inventory. Demand for Feed reduced largely and
feedstuff price surged on a high level. Soymeal price even surpassed the
highest level of RMB3,500/MT in 2004, resulting in more than 5,000 mid-small
scale feed manufacturers suffering from stop production in China.
Affected by tense hog supply and surging hog purchasing price, numbers of
large scale animal slaughtering and meat processing enterprises entered animal
breeding and feed producting industry, causing a reduction of feed market
share rate. Meanwhile, a drowsy feed demand and high feedstuff price casued a
reduction of profit rate, even losses in feed industry. Therefore, large scale
feed groups engaged in animal breeding to expand market share and increase
integration system as to gain more profit and accelerate market distribution.
While the cessation of small scale feed factoties provide more space for the
promotion of large scale enterprises business, it is expected feed market in
China will be carved up by large scale enterprises in 2008.
2007 is a milestone in Chinese feed industry. With the enlargement of animal
breeding scale and long-term feedstuff price, product structure adjustment
will be carried out in feed production, so output growth rate tend to be
slowed down. In terms of feed varieties, formula feed and premixed feed
increased proportion, while concentrated feed proportion reduced. In addition,
corn feed supply tends to be strained on year-on-year basis, so farmers have
enlarged utilization of non-regular feed, although which faced
industrialization lag.
On the basis of livestock and poultry inventory and feedstuff in 2007, this
study gives an in-depth analysis of demand, production and product structure
in the feed industry in 2007 and an outlook of the feed market based on
changes in breeding scale and feedstuff market in 2008, so as to provide a
reliable reference to relevant enterprises in their decision-making.
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