January 25, 2022

Higher demand for pig feed as China's swine industry recovers from ASF

The continued development and recovery of China's swine industry in the wake of African swine fever (ASF) brings an increasing market demand for pig feed.

According to an analysis by Huaon, as of September 2021, the country's pig inventory stood at 437.64 million head, an increase of 18.2% from January to September 2020. China's pig feed production is also rising. Production was 117.4 million tonnes as of November 2021, an increase of 45% from January to November 2020.

Total industrial feed output was 268.17 million tonnes as of November 2021, an increase of 13.8% from January to November 2020. As far as the breakdown in the structure of China's industrial feed production, the top three subdivision products are pig feed (44%), broiler feed (31%), and layer feed (11%), as of November 2021.

The cost of pig feed is mainly corn and soybean meal, accounting for 66% and 24% respectively. Distiller's dried grains with solubles (DDGS), amino acids and others account for the remaining 10%. The price of fattening pig feed in 2021 was generally stable.

The price of finishing pig feed in 2021 increased from ¥3.41/kg (US$0.54) in January to ¥3.48/kg (US$0.55) in November.

- Huaon (China)