February 7, 2025
Examining the market concentration of feed producers in China's livestock industry
From 2020 to 2024, the progress of industry concentration in China varied among various animal husbandry industries.
The Chinese broiler poultry industry is dominated by chicken, which is already highly concentrated. Whether it is in the white-feathered broiler or yellow-feathered broiler sector, corporate integration is the key trend.
In the broiler feed sector, the market share of 'super-large' feed producers (with an annual output of one million tonnes or more) was 62.72% in August 2020. This remained at 62.69% in August 2024, with almost no change.
The market share of large feed producers with an annual output of 100,000 tonnes to one million tonnes also stayed at around 15% from 2020 to 2024. The high concentration of China's broiler industry is the factor behind this stability.
The concentration of the domestic layer industry is growing steadily. The market share of super-large layer feed producers with an annual output of one million tonnes or more expanded from 41.14% in August 2020 to 44.87% in August 2024, peaking at 46.24% in 2023.
Whether it is Wen's, Zhengda, and Techlex — which mainly produce feeds for their own farms — or Haida, Hefeng, and New Hope — which usually sell feeds to other layer producers — these industry players continue to expand their breeding scale or feed sales with the advantages of economies of scale.
During the African swine fever (ASF) epidemic in China, pig feed, which makes up half of the domestic feed market, saw large feed groups expand further on the back of their financial resources and distribution networks. The market share of super-large pig feed producers with an annual output of one million tonnes or more increased from 68.15% in August 2020 to 72.15% in August 2024. The rise was especially significant after the pig industry suffered severe losses in 2023, resulting in the exodus of many small and medium-sized pig farms. This development encouraged large pig producers to quickly fill the void.
The concentration of the pig feed sector has also intensified. A careful analysis shows that the market shares of large feed groups with their own farms or work on a 'group+farm' cooperative model increased at a faster pace.
Following the ASF epidemic, China experienced a severe shortage of live pigs for a period of time, which drove pig prices to a sharp rally. This, in conjunction with export obstruction due to COVID-19, enticed pig feed groups to venture into pig farming, leading them to become integrators. Except for Muyuan and Wens, which are already integrators themselves, feed producers that set up pig farms saw the fastest expansion in the pig industry.
Consequently, from 2020 to 2024, the market share of self-sustaining pig farms (i.e., those that raise live pigs and produce pig feeds) continued to expand. New Hope Group's market share increased from less than 30% to 60%, while Twins Group's share grew from 20% to 45%, Dabeinong's share expanded from 30% to 62%, and Zhengda's share jumped from 16% to 44%; all of these more than doubled in four years.
The trend of industry concentration in China's livestock industry is set to continue, especially in the layer hen and pig industries. This also means the market share of large groups in these industries will expand further.
About EFL AG-DATA
EFL AG-DATA is a startup incubated by Singapore's Nanyang Technological University's Innovation and Enterprise Company (NTUitive) Incubator Program. It is developing an agricultural hub that will revolutionize the feed-to-meat supply chain in China and Southeast Asia countries through data-driven solutions. EFL's mission is to empower farms through innovative data-based services that solve complex problems and enhance productivity.
- EFL AG-DATA
