As the world's largest producer of milk, India's dairy sector is crucial for the livelihoods of millions of farmers and the nutritional needs of its population. However, the sector also contributes significantly to greenhouse gas emissions. In the dairy sector, enteric fermentation is identified as the primary source of emissions, accounting for roughly 70% of the total greenhouse gases (GHGs) from cradle to farm-gate. Contributions from manure management, feed production, and on-farm energy uses are also significant, representing approximately 15%, 10%, and 5% of emissions, respectively.

Fierce competition in China's aquafeed sector led to the number of Chinese aquafeed manufacturers falling from more than 1,600 in the first half of 2023 to 1,480 in H1 2024. The total number of aquafeed factories under the ownership of 80 producers with an annual feed output of more than 200,000 tonnes decreased from more than 530 to 450. However, the combined production volume of the top 10 producers, which account for 55% of the Chinese market, was 4,929,000 tonnes, an increase of 2% from H1 2023.

In the first half of 2024, China's total aquafeed output was 9.28 million tonnes, dipping 4.95% from H1 2023. Freshwater aquafeed, which accounted for about 85% of total output, decreased by 5.61% in H1 2024 to 7.91 million tonnes - within the segment of freshwater aquafeed, freshwater fish feed accounted for 80-85% of output. The output of freshwater fish feed in H1 2024 was 6.03 million tonnes, a year-on-year drop of 6.27% from H1 2023.

The main models of white shrimp farming in China include earthen pond farming and industrial farming. Industrial farming produces only about 50,000-100,000 tonnes of Chinese white shrimp output (earthen pond farming is currently the leading farming method in China). The most advanced industrial farming model remains unaffordable for most small and medium-sized farm owners due to high initial investment costs. Nevertheless, industrial shrimp farming expanded rapidly from 2014 to 2023, gradually changing the shrimp farming landscape in the country.

India's shrimp farming, particularly of those focused on Litopenaeus vannamei and Penaeus monodon, continued to maintain its place in the Indian market. In the early months of the first quarter, while stockings were at lower levels, nearly 70% of ponds were later stocked by the end of the quarter. The average export value per kilogramme of raw L. vannamei has shown a positive trend in Q1 but is still considerably below 2023. At the end of Q2, the farmgate price of shrimp fetched better prices.

China's egg production hit a record high last year, exceeding 30 million tonnes with a year-on-year increase of 3.1% — and higher by 2.7% compared with a historical high in 2020. Meanwhile, egg production in the first quarter of this year increased by 1.5% year-on-year. While the Chinese egg supply was abundant, domestic consumption declined below expectations. With excessive supply overwhelming demand, egg prices tumbled, causing losses for the layer breeding industry.

With the outbreak of African swine fever (ASF) in China in August 2018, pig release volumes in the country plunged more than 40% in 2019 compared with 2018. This development led to an increase in China's broiler output from less than 900 million birds to 1.3 billion birds in 2020. Entering 2021, as the supply of live pigs gradually recovered, the consumption of chicken started to decline — a key factor in falling broiler consumption.

India has started importing duty-free corn from neighbouring Myanmar, with at least three ships having arrived in Tamil Nadu so far and a few more expected to reach by July-end. Initially, imports were valued at $268 a tonne but prices have now increased. If corn is imported from any other country, India's Customs Department would impose a 60% duty in addition to other charges. In 2020, imports of 500000 tonnes of corn were allowed under India's tariff rate quota (TRQ).

In 2023, China's total broiler chicken release volume reached 13,022 million birds, an increase of 1,165 million or 9.83% from 2022. Among them, the release volume of white-feather broilers was 7,195 million, an 18.14% rise compared with 2022. The market share of white-feather broiler chickens has also expanded to 55.25%. The record output of these birds was due to the expansion of grandparent stock (GPS) broiler breeders.

Muyuan, according to its annual report, slaughtered 13.26 million pigs in 2023, surpassing that of Shuanghui.

The number of pigs produced in China reached 720 million head in 2023, while data from government and private sources estimated it to be 550 million.

In most of 2023 (except for August and September), pig producers in China have been incurring losses, resulting in an overall annual deficit unseen since 2014. According to Wang Zuli, a specialist from the country's Agriculture and Rural Affairs Department, a major factor causing falling prices was the excessive capacity of pig production. While Chinese sow inventories have been trimmed, those cuts have not been substantial.

Despite the significant potential for pig farming to contribute to the better livelihood of the rural poor and meet the demand for animal protein, India's pig population is considerably low.

China currently has more than 1,600 aquafeed producers, with one-third of them having a total annual output of over 200,000 tonnes. Last year, the combined output of the top 10 aquafeed producers in the country was 12,229,000 tonnes, accounting for 53% of China's total aquafeed production; the overall ranking of these industry players remained largely unchanged in 2023.

China's production of aquafeed decreased by 3.79% on-year to 23.06 million tonnes compared with 2022. Aquafeed output dropped by 900,000 tonnes, with production in the first quarter last year down by 250,000 tonnes and the third quarter down by 685,000 tonnes (changes in the second and fourth quarters were minimal). China's aquafeed output consists of freshwater and seawater types, with the former accounting for 85% of total production. The output of freshwater aquafeed in 2023 was 19.86 million tonnes - 980,000 tonnes below that of 2022 and an 8.30% drop.

In recent years, China's aquaculture industry faced developmental bottlenecks. For instance, offshore aquaculture, which occupies a large amount of land area, has to contend with other industries for land space. However, with the rapid development of offshore wind power, the offshore wind station-aquaculture farm hybrid model shed light on the aquaculture industry's recent evolution. This model would allow marine aquaculture to locate further out to deep seas.

China's total salmon imports in 2023 reached 92,920 tonnes, a year-on-year increase of 46.3% and exceeding 2019's historic high of 89,184 tonnes. Chilled salmon imports soared from 49,018 tonnes in 2022 to 80,126 tonnes in 2023, an increase of 63.5%, breaking through the 80,000-tonnes mark for the first time in history and surpassing the historical record of 74,242 tonnes in 2019. Although the amount of salmon imported into China last year hit a new high with a 63.5% increase, this is mainly due to the surge in chilled salmon imports.

India's farmgate shrimp prices were better at US$3/kg in early 2024 until February and March — before falling to nearly US$2.65/kg. This year, shrimp farmers started stocking their ponds in mid-January, anticipating better market prices (the average stocking density varied between 40-60/m2). Overall, shrimp seed quality was satisfactory. However, the demand for shrimp seed was not as high as in 2023. The decline in demand for shrimp seed might continue in the second half of 2024. This trend might even lead to the consolidation of the shrimp hatchery segment in India.

The current level of automation in the feed production industry is languishing in a state liken to "Stone Age," according to Michael Lierau, vice president of ANDRITZ Feed & Biofuel. Along with Lierau, global vice president (automation and digitalisation) Dr. Sohail Nazari, alludes the industry's sorry situation to a complacency for progress. Hence, ANDRITZ's motto today presents an antithesis to this attitude: "Never stand still," it emphatically affirms.

Most of Chinese province Shandong's white feather broiler industry is based in Yantai City. There are five white-feather broiler chicken companies listed on the two major stock exchanges in Shanghai and Shenzhen — with four of them from Yantai, namely Minhe Husbandry, Shandong Yisheng Livestock & Poultry Breeding, Shandong Xiantan and Springsnow Food.

In 2023, China's inventory of white feather broilers hit a record, but the producers of parent stock (PS) broiler breeders suffered severe losses as the prices of broiler eggs stayed weak, particularly in the second half. Last year, the price of broiler eggs rose from ¥1.55/egg at the start of 2023 to ¥3.75/egg by mid-March, before dropping to ¥1.05/egg by May. In July, prices firmed up to ¥2.50/egg before falling to ¥1.00/egg.

China's total broiler release volume (including white feather, yellow feather and small white feather broiler chickens) in 2023 was 13.022 billion birds, an increase of 1.165 billion birds from 2022. The sales volume of white feather broilers reached a record of 7.195 billion birds. Following a price increase in the first quarter of 2023, the prices of white-feather broilers fell sharply since the second quarter.

A total of 88 new layer farms were built across China in 2023, with a cumulative layer capacity of 148.3 million birds. Among these farms, 60 have the capacity to rear one million or more layer hens, accounting for about 68.2% of newly added production capacity. The Chinese layer industry mainly consists of small- and medium-sized farms, with about 75% of farms rearing less than 100,000 layer hens. In 2023, there are 68 companies with an inventory of over one million laying hens. The combined layer population of these farms exceeds 218 million birds, accounting for only about 18.1% of China's total population of laying hens.

India's poultry market, currently valued at $30 billion, will grow at a compound annual growth rate (CAGR) of 7.5-8% in the next 10 years. The country's poultry exports have reached $120 million during the period from April 2023 to December 2023. There is also strong demand from countries like Oman and Sri Lanka. During 2021-22 and 2022-23, Indian exports were $71 and $134 million, respectively.

Last December, New Hope Liuhe announced it would sell 51% of its subsidiary, Shandong Zhongxin Food to China Animal Husbandry Industry (CAHIC), for ¥2.7 billion (US$375.1 million) and 67% of another subsidiary, Deyang Food, to Hainan Shengchen Investment for approximately ¥1.501 billion (US$208.4 million).

rom five in 2022, the number of 'ultra-large' feed producers in China increased to seven in 2023, as Twins Group and Guangxi Liyuan joined the ranks. Twins also took control of Jiangxi Zhengbang Group last year. The combined feed output of both companies totalled nearly 15 million tonnes. Meanwhile, Liyuan joined the league of ultra-large producers due to a rise in pig feed production.

China's feed consumption in 2023 was 271.62 million tonnes, an increase of 6.04% over 2022, based on eFeedLink statistics. The output of pig feed last year totalled 130.70 million tonnes, an increase of 9.95% compared to 2022. However, a closer analysis reveals that the actual production of pig feed (specifically, concentrates and premixes converted into compound feeds) only increased by 0.26%. compound pig feed output increased by 10.64%, while the output of concentrated feed and pig premix decreased by 15.32% and 5.27%, respectively.

This year, India could produce around 28 million metric tonnes (MMT) of poultry feed, 16MMT of cattle feed and 3.5MMT of aquafeed. With most raw materials needed for animal feed produced in India, the country may now face shortages as the animal husbandry sector is growing faster than crop production. The availability of quality feed ingredients and their prices are major challenges for producing compound feeds.

Zhongxin Breeding was set up in 1998 by Wen's Group and has been focusing on pig breeding and reproduction for 23 years. In 2021, Zhongxin Breeding became independent from its parent organisation, accumulating over 20 years of breeding and research experience and leading the industry in terms of scale and technological development. As for SciGene, its sales of breeding pigs in 2022 reached 220,000, out of which 70 were exported. The company has two genetic core farms in Chizhou, Anhui and Guigang, Guangxi, with a total of 4,500 core breeders.

Since May 2023, China's major stock market indexes have plummeted relentlessly, with the Shanghai Composite Index falling from 3418.95 on May 9 last year to 2867.71 as of January 11 this year. The pork sector index earlier saw a rebound in the index last March, peaking at 2668.75 on April 4, 2023 - then falling, followed by a rebounding in October. The rally lost momentum at 2312.25 on December 7 and slid to around 2,127 as of mid-January 2024. The movement of pig prices since October 2023 does not, however, appear to reflect sentiments behind rallying pork sector stocks.