November 27, 2006

 

New Hope urges China's feed industries to venture abroad

 

 

China's large-scale feed companies should expand abroad and compete internationally, said Liu Yonghao, director of New Hope Group, and vice chairman of China's feed organisation.

 

Liu was speaking at the third large-scale enterprises conferences aimed at China's feed industries held on Oct 25, 2006. He suggested 4 regions which held great promise for the feed industries.

 

The first was in North-Africa. Based on its abundant crop supply, particularly corn and the positive outlook for the export market, together with its lack of trade barriers restricting access to the EU and US, the region is fast becoming one of the fastest growing regions for livestock export. New Hope itself is considering a joint venture to set up feed factories with Europe and American enterprises in the region, Liu said.

 

Huge potential also exists in other regions of Africa even as war and poverty concerns have discouraged enterprises from Europe and America, he added.

 

The third region he highlighted was Eastern-Europe (including Russia), where burgeoning demand for pork has led to a tight supply. Eastern - Europe imports large volumes of pork form China annually and its rapid economic growth currently holds huge potential for the feed industry as well.

 

The last region he suggested was India. With a 1.2 billion population, there is huge demand for fish, shrimp and poultry products. India is another promising market for the feed industry based on its rapid economic development, he stressed.