According to data monitoring on 180 key
feed enterprises conducted by the Ministry of Agriculture of the People’s
Republic of China (MOA), the Chinese feed industry grew steadily: total output
of feed rose by 4.0% YoY in H1 2016, vs. 1.4% in the whole of 2015.
Specifically,
Source: Baidu
-
Feed formula: up 4.8% YoY
-
Concentrated feed: down 1.9% YoY
-
Pre-mixed feed: up 4.8% YoY
In H1, thanks to the surged domestic prices of livestock and poultry, many
famers and farming enterprises realised financial turnaround and are attracted
to expand production, which boosted demand for feed.
Specific output of feed by livestock and poultry:
-
Feed for poultry for egg: up 4.8% YoY
-
Feed for poultry for meat: up 15.8% YoY
-
Aquatic feed: down 8.5% YoY
-
Ruminant feed: up 0.8% YoY
In particular, the decrease in output of pig feed was mainly because producers
anticipated decrease in live pigs on farm. According to data from 4,000
monitoring stations, the national number of live pigs on farm went down by 2.1%
YoY and that of adult sows on farm also down by 3.4% YoY as of June 2016.
On the contrary, the output of feed for poultry was boosted by increased number
of poultry on farm and rising prices. As of June, the domestic market price of
live chicken and fresh chicken (with feather plucked) rose by 3.5% and 3.8% YoY
respectively.
- Feed additive & raw material
H1 2016 saw decreases in prices of bulk raw materials and amino acids:
-
Raw materials: corn, soybean meal, wheat
bran and fish meal respectively down 18.3%, 14.0%, 24.0% and 13.6% YoY
-
Amino Acids: 98.5% lysine, 65% lysine,
solid methionine and liquid methionine respectively down 7.8%, 9.8%, 30.4% and
30.5% YoY
On the contrary, prices of some vitamins, like vitamin A, vitamin B2, vitamin
B6 and vitamin E went up during this period, mainly affected by raised
quotations from leading vitamin producers. Yet, this posed no great influence
on the feed industry.
- Feed manufacturer
According to the MOA, the production concentration of domestic feed industry
was further improved. The number of feed manufacturer has kept declining in the
past few years – from 10,000+ in 2011 to around 6,000 in 2015. In H1 2016,
-
Enterprises with an output ≥10,000 t/m (m
for month): up 7.2% YoY
-
Enterprises with an output between
5,000-10,000 t/m: down 4.5% YoY
-
Enterprises with an output ≤5,000 t/m: down
1.2% YoY
This to some extent promoted financial performance of leading producers. For
instance, many listed feed companies, like Beijing Dabeinong Technology Group Co.,
Ltd., Tangrenshen Group Co., Ltd., Tongwei Group Co., Ltd. and Wellhope
Agri-tech Joint Stock Co., Ltd., all realised significant profit growth in H1
2016.
This article comes from Amino Acids China E-News 1609, CCM
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Tag: amino acids feed