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Publication

 

FBA Issue 4: September / October 2005

 

Compound feed enzymes find niche in China

 

 

by SHI Kai 

 

How has China's market for compound feed enzymes fared in recent years? In 2004, consumption of feed enzymes in China rose 4.6 percent year-on-year to 11,400 tonnes; total sales revenue in that period grew 23.5 percent to reach RMB226 million. These enzymes were added to some 12.95 million tonnes of feed, or 14 percent of China's total feed production.

 

Since 2002, China's market for compound feed enzymes, particularly those applied to feed for fattened hogs, has undergone tremendous change. Before 2001, there was limited feed use for such enzymes. By 2002, consumption had reached 600 tonnes, almost tripling to 1,750 tonnes in two years, by 2004.

 

Several factors account for China's growing consumption of compound feed enzymes. First, 80 percent of Chinese hog farmers are still using the more costly corn- and soy-based diets. As there is likelihood that farmers may switch to lower cost mixed or wheat-based diets in the near future, demand for compound feed enzymes will increase.

 

Second, pork consumption has increased since the avian flu outbreak in 2004 shifted demand away from chicken to pork. The higher profits enjoyed by farmers have made them more willing to improve the quality of hog feed by adding compound feed enzymes.

 

Third is Danisco Animal Nutrition's aggressive promotion of enzyme use. The success of these promotions in China have led to more feed mills using enzymes in hog feed production.

 

Compound feed enzymes are most commonly added to piglet feed. Currently, about 40 percent of piglet feed are enzyme-treated; substantial volumes are also used in feed concentrates and premixes. The use of compound feed enzymes in aquatic and ruminant feed, however, is limited as these enzymes generally do not fare well under the high-heat process in fish feed production while applications to ruminant feed have been unimpressive thus far.

 

 

This is an excerpt, full versions are only available in FEED Business Asia. For subscriptions enquiries, e-mail membership@efeedlink.com

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