March 17, 2011

 

 

China's demand for animal feed is likely to rise 43% over the next five years as pork and chicken consumption soars, according to an executive from CP Group Wednesday (Mar 16). 

 

Feed demand is likely to reach 200 million tonnes by 2016 from the current 140 million tonnes, said Yao Minpu, a senior vice-chairman of the China unit of Thailand's CP Group Agro-Industry & Food Business.

 

China's pork consumption may rise 14% to 45kg per person per year from the current 39.5kg, he added, while chicken consumption may increase 67% to 15kg per person per year from 9kg now.

 

Corn currently accounts for 55-65% of total feed output. But China, the world's biggest consumer of pork and importer of soy, has limited room to boost its own output.

 

Agriculture Minister Han Changfu said in December a lack of arable land was one of the difficulties in raising China's corn output further, after the harvest rose by more than 10 million tonnes in 2010.

 

China had to import about 1.5 million tonnes of US corn in 2010 - its first major purchase in 15 years - after a poor 2009 harvest failed to satisfy demand from animal feed producers and corn processors.

 

Industry players expect beef and pork to be on China's commodity shopping list in 2011 as the world's second-largest economy struggles to balance supply and demand in feed.

 

Commerce Minister Chen Deming said late last year that China would import to shore up reserves of meat, sugar and other commodities in 2011.

 

Higher grain prices "will bring the opportunity for developing modern agriculture," Yao said, which is characterised by large-scale production, automation and industralisation. They should also attract expertise and investment, he added.

 

CP Group plans to invest over RMB10 billion (US$1.52 billion) over the next five to six years on pork, chicken and aquatic products production, according to Yao.