Guangdong’s feed output up with 15%

Production in the third quarter hit 4.45 million tons alone, rising 29%
year-on-year, with poultry feed production surging 44% from the same quarter
last year. Broken down for the first nine months of this year, 5.66 million tons
of poultry feed, 2.36 million tons of pig feed, and 2.17 million tons of aquatic
feed were produced, rising 20%, 6%, and 18% year-on-year, respectively.

Pig epidemics
During the first three quarters, pig feed
accounted for only 22.9% of Guangdong’s feedstuff output on slow demand growth
as China’s live pig population has been affected by pig epidemics since late
2006. Live pig numbers recovered during the latter half of this year, and pig
feed production in the third quarter increased 27% on an annual basis to 950,000
tons.

Prices of raw materials
“Feed companies have
faced a new challenge, as raw material prices have been on the rise since May
this year, which means profits have fallen. For example, corn prices rose by 20%
year-on-year, and soy meal prices increased by RMB 1,000 ($134.68) per ton in
September,” an anonymous officer with the Guangdong Provincial Feed Industry
Association said. Guangdong has been China’s leading feedstuff producer for four
years, and it now accounts for one-eighth of the country’s total
production.