April 14, 2005


More than 80 percent of China's feed mills profitable in 2004


An eFeedLink exclusive report



At the 2005 China Feed Market Development High-level Forum held at Xihu Hotel in Fuzhou city on April 8, it was revealed that new characteristics have emerged in the development of China's feed industry.


With the rapid growth of the "enterprise + farmers + base" operation model, the management style of feed mills is gradually undergoing a transformation. Feed mills are continually expanding their scale of operations, the level of professionalism is on the rise, and industrialised management is fast becoming a trend.




                                The 2005 China Feed Market Development High-level Forum in full swing



At the forum, Bai Meiqing, President of China Feed Industry Association, also noted that the Chinese feed industry has gone through numerous challenges in recent years - the country's progression toward a market economy, accession to the WTO, as well as the outbreaks of SARS and avian influenza. 

In spite of these difficulties, China's feed industry records a steady growth of 4-6 percent in annual production output in 2004. Total feed production reached 93 million tonnes, a rise of 6.8 percent compared with the previous year.  Feed production value in 2004 also surpassed the RMB200 billion mark for the first time, totalling RMB 235.3 billion, representing a year-on-year increase of 13.28 percent. 

Random surveys have revealed that feed mills in China generally reaped good economic returns.  More than 80 percent of the enterprises were profitable while about 15 percent managed to break-even. Only less than 4 percent of feed mills incurred losses. 

Despite a poor beginning in early 2004, China's feed industry ended the year on a high note. The Chinese feed industry help meet the requirements of the livestock sectors and attainment of the country's three rural policies ("San Nong") as well as support the growth of general consumption in the country.



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