January 30, 2008


China's Guangzhou records higher feed production in 2007



According to preliminary estimates released at the annual meeting of Guangzhou's Feed Industry Association held last week, factories in Guangdong's provincial capital produced 2.4 million tonnes of animal feed in 2007, up 7.96 percent on-year.


Guangzhou's output of hog feed in 2007 was down 6.68 percent on-year to 0.54 million tonnes. Market participants said that lower hog inventory levels caused by swine diseases had led feed millers in the city to reduce production in 2007.


Meanwhile, poultry feed production was up 13.92 percent on-year, at 1.45 million tonnes. Higher hog prices had caused demand for meat to shift in favour of chickens and demand for poultry feed was thus stronger compared with a year ago. Improving rearing profits had also helped to boost poultry replenishment activities.


Reflecting the steady demand from the aquaculture industry, Guangzhou's aqua feed production was up 7 percent in 2007 to 0.39 million tonnes.


Despite the overall rise in feed production, feed millers' profitability had declined, mainly due to increased raw cost. Prices of macro feed ingredients such as corn and soymeal as well as certain feed additives had risen significantly in 2007, thus impacting on their bottomline.


RMB1=0.1390 (Jan 30)