News last update:6 Aug 2012

Chinese feed and livestock back on track

After some difficulties in 2006, China's animal production and feed industry has now become the focus of intense business interest and research, particularly among corporations, suppliers and investors, according to a new report by Research and Markets.

2006 was a difficult year for China's livestock and feed sectors, mainly as a result of bird flu outbreaks. This had a huge impact on the pig and poultry numbers. Ruminants were unaffected by these disease outbreaks and continued growing at a healthy rate. Similarly, aquaculture's supply and demand increased. However, these two sectors account for a relatively smaller portion of feed demand and animal production. Hence, ruminants and aquaculture's relative prosperity could not prevent an overall decline in livestock production and animal feed demand.

Feed demand will rise
In the second half of 2006, demand finally overtook livestock supplies, pushing up both prices and replacement rates. In 2007, it is expected that the replacement rates will recover, livestock inventories rise, and subsequently will the feed demand. All other things being equal, under these conditions, feed demand will resume growing and most feed suppliers will return to profitability.
The report
The 4-page executive summary of the full report provides an overview of 2007's strongest trends and the forces which will drive the Chinese industry. They are: Accelerating consolidation of livestock & feed companies, the unresolved dilemma of growing corn demand, foreign firms dominate key grain markets and fishmeal and its imperfect substitutes.

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Research and Markets

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