Process Management

News last update:6 Aug 2012

Guangdong's feed output up with 15%

Feedstuff production in southern China's Guangdong Province reached 10.3 million tons during the first three quarters of the year, representing an increase of 15% from the same period of last year, the Guangdong Provincial Feed Industry Association announced this week.

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.

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