CCM: Chinese feed industry: stable growth in output in H1 2016

Publish time: 11th October, 2016      Source: CCM
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  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:

  •     Pig feed: down 1.5% YoY   
  •     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   
  •     Others: down 9.9% 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