October 6, 2022

Looking at the playing field for major Chinese feed producers

An eFeedLink Hot Topic

Data show that the total number of feed enterprises in China had dropped from 15,519 in 2005 to 6,772 in 2020 — even as the scale of feed mills continues to expand.

In 2005, there were only 17 feed enterprises with 500,000 tonnes or higher annual production volumes, and their combined output accounted for 25% of the country's total feed output.

However, last year, the number of ‘super-large' feed groups with an annual output of over one million tonnes totaled 36, of which six feed companies have production volumes above 10 million tonnes. The combined output of these 36 enterprises reached 180 million tonnes, surging 50% compared with 120 million tonnes in 2019. The proportion of feed output of super-large enterprises increased from 54% in 2019 to more than 60% in 2021.

Among the super-large producers, Fujian Shengnong completed its new production facility, thus boosting its broiler feed output by over 50%. Meanwhile, Daxiang Agro-Livestock saw its hog feed output, which accounted for 60% of the company's total production, decreased by 23%. Shandong Jiurui expanded its broiler feed output, which accounted for more than 70% of its total production by over 10%.

As for the large aquafeed producers, Sichuan Tongwei expanded its output by 13%. Aquaculture production in China's southeast region plummeted due to floods and adverse weather, hence diminishing the aqua feed output of producers, like Hengxing, Yuehai and Aohua, in Guangdong.

Overall, the performance of large feed producers was below average in the first six months of 2022. Nonetheless, their outputs are expected to increase as hog farming returns to profitability.

However, it will be more difficult for broiler feed integrators to depend on broiler farming to boost their feed output to one million tonnes, as they will need to have a breeding volume of 250 million birds to reach that level.

- SHI TAO