Octoober 1, 2007

Chinese seed company to benefit from recovery of nation's feed sector

Shandong Zhouyuan Seed and Nursery Co., Ltd. which is incorporated in the US State of Delaware, announced that its operating subsidiary company in China, Shandong Zhouyuan Seed and Nursery Co., Ltd. is expected to benefit from the feed industry's recovery over the next two years.

The growth in demand of the feed industry is one of the foundations for the growth of corn and corn seed consumption, the company said.

China's feed industry had been battered over the last few years, due to epidemics, high prices of raw materials and other factors. Nearly 5,000 small feed companies closed down during the said period.

However, China's feed production has experienced a 21-million tonne surge in the first quarter this year, a remarkable increase from the same period last year, the company said.

Profit increases in the aquaculture industry will lead the feed industry recovery, the company asserted. Furthermore, the company expects the demand for corn and corn seed would grow during the next two years.

The whole domestic feed production has reached 100 million tonnes, but the demand is far beyond that, the company said.

'According to '11th Five-Year Plan, China would enhance the development of its feed industry and improve the legal systems in the feed production industry to protect and to sustain a healthy development, said Wang Zhigang, President of SZSN.

Such polices are friendly to seed product enterprises and promote the competitiveness of China's seed and feed industry in the international market, he added.

Zhouyuan was established in 2001 in China and based in Laizhou, Shandong province. Its business covers the agriculture seeds development and distribution over more than twenty provinces in China. Now, Zhouyuan ranks as one of the top three seed producers in the Laizhou District, known as the ''Seed Valley of China''.