Swinefeed productionin the next 2-3 years to increase by 3-5%

Production of livestock feed is directly connected to the development of the livestock industry, and with the increasing demand for meats, eggs and dairy products, and the continuous expansion of livestock industry in recent years, the feed industry has also been in a stage of rapid development.

Senior analyst of Beijing Boyahexun Animal Husbandry Technology Co., Ltd, Liu Xiaofeng, provides a detailed and in-depth analytical outlook of the nation''s feed production and swine feed industry.

For the first half of 2014, the nation''s feed production has dropped 4.4% year-on-year, after converting to compound feed, the total consumption in the first half of the year dropped 3.8% year-on-year.

As the quantity for breeding stock is still high for second half of the year, creating demand for swine feed which in turn increase the estimated annual pig feed production by 3-5% year-on-year. Meanwhile, poultry feed, aquatic feed and ruminant feed are also expected to experience varying degrees of growth. Overall, this year''s feed production is expected to remain constant or increase slightly compared to last year.

At the same time, the cost of raw materials for feed production estimated declined 3% compared to the previous year. However, the cost of large poultry feed dropped greater than the cost of raw materials, hence decreasing its profit. With the cost of corn rising, the benefit of using wheat and sorghum as substitutes becomes obvious. For example, using wheat to replace corn for every added 30%, there will be a cost saving of RMB120 per ton of feed.

The feed industry is expected to continue growing in the next four or five years, and will cross over from the period of rapid growth into maturity around 2018.

Industrialized pig feed ratio is 77%, meaning there is still much room for improvement in output growth. Likewise, there is also much potential for the development of ruminant feed, however the supply of forage has become a bottleneck for its development.

In general, feed production in 2015 is expected to resume growth, and the growth rate of feed production in the next 2-3 years is expected at 3-5%.