Rising wages and an unstable raw materials market are the two economic factors that make up the biggest challenges for Chinese feed companies. Feed companies therefore keep a close eye on economic trends and look out for tools that can support their business objectives.
According to the ILO Global Wage Report 2014-2015, which shows developments in wages over the past years, wages are hardly rising any more worldwide. However, they are rising in China, and there is even a marked increase in real wages. China is one of the emerging countries where increasing numbers of workers are earning their household income through wages and not from other sources.
“This is a natural development which fits into an environment where the government is aiming to replace export-driven growth by consumer-driven growth. An additional phenomenon is the ‘war for talent’. In other words, companies which want to attract talented and driven young people must pay better wages. The situation is no different in the feed industry. Specifically, wages in the Chinese feed sector have virtually doubled over the past five years, clearly pointing to professionalisation within the industry,” says Belgian developer of software for the feed industry Adifo.
“Another big challenge for feed producers is growing demand for raw materials, which is exerting increasing pressure on raw materials market. The upshot is increasing and strongly fluctuating prices. For this reason, it is of the utmost importance that animal feed companies take well-founded purchasing decisions in the short and long term,” states Adifo.
Adifo develops and supports a range of industry-specific strategic software tools for feed formulation, recipe management, quality data management, ration calculations, cloud services and ERP. “Adifo’s Bestmix products offer nutritionists the ideal application for increasing efficiency and minimising costs. With user-friendly Bestmix software, nutritional values, production parameters and recipe specifications can be easily and accurately managed. This enables businesses to react immediately to sudden fluctuations in raw materials prices, ingredient stocks and purchasing positions. This results in optimum recipes that can be translated straight into off-the-shelf products. In addition, any change can also be automatically synchronised with labelling and safety data. Bestmix is used by more than 500 businesses worldwide.”
Chinese companies now also have direct access to Bestmix formulation software via the Adifo office in Beijing, where the Chinese team provides sales and support services for Bestmix with assistance from colleagues/sector specialists in Europe.