July 17, 2003


Feed Additves and Premix Production Dominate Shanghai's Feed Industry


An eFeedLink Exclusive Report


Profound structural changes have taken place within the feed industry in Shanghai.


Feed production and business management have transformed from the dominance of state-owned enterprises and have evolved into different company ownership types such as public companies, private companies, and conglomerates.


Joint venture enterprises such as Dajiang, Roche, Zhengcheng and Shende and privately held companies such as East Hope Group are the new anchors of the feed industry in Shanghai.


Currently, there are more than 200 feed producers in Shanghai, according to the latest statistics from the Shanghai Feed Industry Association.


In particular, the number of feed additives and pre-mixes producers has increased rapidly, and now accounts for half of all companies in the feed industry in Shanghai.


Since 2000, the production volume of feed products has started picking up again, especially in the case of feed additives and pre-mixes, for which the output in 2000 was 160.6% of that in 1999.


Output for feed additives and pre-mixes in 2001 again rose 17.6% over 2000.


In 2000, the economic value of the output from Shanghai's feed industry was RMB2.75 billion, with profits at RMB53 million.


In 2001, the economic value stood at RMB2.76 billion, with RMB34.67 million in profits.


Besides their focus on the domestic markets in China, feed additive producers in Shanghai are also working hard to penetrate the global market.


Feed additive products from Shanghai Yongxin Vitamins Pte Ltd, Shanghai Meinong Feed Pte Ltd and Shanghai Pudong Sanwei are already exported to Southeast Asia, and jostling for global market share. Clearly, the feed industry in Shanghai is full of vitality.