April 23, 2021
China issues guidelines to change livestock feed recipes
China's Ministry of Agriculture and Rural Affairs has issued new guidelines recommending lower corn and soymeal in swine and poultry feed, which could reshape the flow of grains into China, Reuters reported.
The ministry said the new guidelines are targeted at improving the use of available raw materials and producing a formula that matches domestic conditions.
Livestock feed producers in China have already changed from corn to cheaper alternatives such as wheat, after low corn output and state stockpiles pushed corn prices to record highs. Increased use of wheat has also cut soymeal demand. Wheat has more protein than corn.
The ministry named other corn alternatives such as rice, cassava, rice bran, barley and sorghum, and soymeal alternatives such as rapeseed meal, cottonseed meal, peanut meal, sunflower meal, distillers dried grains, palm meal, flaxmeal, sesame meal and corn processing byproducts.
Li Hongchao, senior analyst at trade website Myagric.com, said the new guidelines will only affect producers that have not followed the trend towards corn substitution.
A wheat products trader, who declined to be named as he was not permitted to speak to the media, said there are many feed producer clients using corn, and have not cut the grain completely.
The ministry also provided region-specific suggested feed formulations. For northeast China, the ministry suggested reducing corn by at least 15% in swine diets using rice and rice bran. For southern China, the ministry suggested rice bran meal and barley to replace corn in swine feed. In other regions, the ministry suggested eliminating soymeal completely and replacing it with other meals.
China is the world's biggest corn and soybean buyer.