The Week in Review
Saturday, August 27, 2022
The status of corn and soybean meal supplies and demand in India
Corn is the third most important food grain in India. It is also the fastest-growing cereal crop in terms of area, production, and productivity. But the growth rate of corn consumption has outpaced the production growth over the last decade. Furthermore, the war in Ukraine, COVID-19 and low production of key producers have impacted the global corn trade leading to higher prices.
Saturday, August 20, 2022
A look into recent trends in India's animal nutrition
As per available national data, India is facing a shortage of 11%, 35% and 28% of dry fodder, green fodder and concentrate, respectively. In fact, there have been several research initiatives and innovations that would help address its feed deficit.
Saturday, August 13, 2022
China's poultry and pork compete for market share whilst dealing with price fluctuations
Over the past decade, China's poultry meat consumption has increased consistently year by year. Correspondingly, overall domestic pork consumption has declined steadily. One factor behind China's falling pork consumption was the outbreak of African swine fever in the country in 2018. Thus, China's pork consumption decreased from 52.28 million tonnes that year to 28.17 million tonnes in 2019.
Saturday, August 6, 2022
China's 2020-21 feed market: Rising corn prices and using wheat as substitute
The price of corn in China surged from ¥1,870/tonne in January 2020 to ¥2,629 /tonne by the end of 2020, an increase of ¥759/tonne. Prices of corn stayed high in 2021. Entering 2022, the price of corn continued to trend higher. Price fluctuations triggered the substitution of this ingredient.
Saturday, July 30, 2022
Muyuan Foods & Wens Foodstuff Group: How major Chinese pig producers compare
Muyuan Foods Co., Ltd, the biggest pig farming enterprise in the world, saw its sales of live pigs increase by 122.3% to 40.263 million heads in 2021. But as pig prices tumbled last year, the company's net profit plunged 74.9% to ¥6.904 billion. Muyuan's current cost of fattening pigs is close to ¥16/kg (US$2.39), lower than most producers in the market.
Saturday, July 23, 2022
Undeterred by losses, Aonong Bio advances to becoming major swine producer
At the beginning of its establishment in 2011, Aonong Bio was an agricultural and animal husbandry enterprise with pig feed as its main business. Since 2014, the company gradually ventured into the pig breeding industry and its breeding volume expanded steadily. Last year, Aonong Bio sold 3,245,900 live pigs, a 141.10% increase from 1,346,000 in 2020. Piglets accounted for 58.3% of its total sales.
Saturday, July 16, 2022
COVID-19 lockdowns seriously impact China's meat and feed trade
China's COVID-19 lockdowns have greatly rocked the domestic animal husbandry industry. According to data from the Ministry of Agriculture and Rural Affairs, pork sales on three major e-commerce platforms in March this year totalled 414.81 tonnes, equivalent to the previous month. However, year-on-year pork sales tumbled by as much as 52.09%.
Saturday, July 9, 2022
Utilising feed additives to manage costs and quality of India's animal feed
India's broiler feed production last year was around 12.5 million tonnes and layer feed production was around 13 million tonnes. The main feed additives used in broiler and layer feeds include enzymes, antioxidants, emulsifiers, anticoccidials and prebiotics. Synthetic amino acids are also used. Due to higher raw material prices, the penetration of other enzymes is also increasing. Using enzymes will lower the cost of production due to the use of matrix values.
Saturday, July 2, 2022
Wheat export ban's impact on India and the world
The world is depending on India for the supply of wheat as no fresh arrival is expected from anywhere in the world between now and July. However, India banned wheat exports from May 13 after a heatwave swept across the country and affected wheat production. Meanwhile, wheat crops in Ukraine and Russia are expected to mature in August and September. However, no one knows the extent of damage to Ukraine's wheat fields, warehouses and ports as a result of its war with Russia.
Saturday, June 18, 2022
Industry investments - The impetus for expanding China's meat production
Studies show that China's import dependence on beef is about 30%, while that of dairy products is higher at 50%. The shortage of beef and milk, together with the low reproductive rate of ruminants, means that investments in the ruminant sector represent good development opportunities in the next decade.
Saturday, June 11, 2022
Better efficiency for Chinese dairy production finds answer in modern milking machines
Modern milking machines have become one of the most important technologies in China's dairy farming; based on the 2020 China Dairy survey data, 13.4% of domestic dairy farms used rotary parlour milking machines, which have made milk production more efficient. Reflecting this trend in using modern technology, automatic milking robots were installed last year by Ningxia Jiubeier Agricultural Development Company, which completed the construction of its 5G intelligent dairy farm.
Saturday, June 4, 2022
India's milk production on the rise as dairy companies take advantage of opportunities
During the 2020-21 period, milk production in India went up by 5.81%. As per the production data of the Food and Agriculture Organization's Corporate Statistical Database (FAOSTAT), the country ranks first in milk production, accounting for 21% of global output. Its milk production was 209.96 million tonnes in 2020-21, compared to 198.44 million tonnes in 2019-20.
Saturday, May 28, 2022
Marked growth in China's oligopolistic aquafeed market
At 65.49 million tonnes, China's 2020 aquaculture output accounted for more than 60% of global production. The country's rapid aquaculture development fueled its aquafeed industry's growth. eFeedLink statistics show that its aquafeed output exceeded 20 million tonnes in 2019; by 2021, it expanded to over 23.3 million tonnes.
Saturday, May 21, 2022
From aquafeed to food processing: The transformation of Guangdong Hengxing
Guangdong Hengxing Group is one of the leading aquafeed companies in China and has been the leader of the Chinese shrimp feed market for many years. The group currently has five subsidiary companies in Guangdong and Hainan provinces. Having started marine farming and fish fry breeding in 2004, Guangdong Hengxing saw sales volume of its shrimp feed reaching 320,000 tonnes in 2012, with a market share as high as 25%.
Saturday, May 14, 2022
Tongwei experiences steady path of expansion and growth
Since 2001, Tongwei, one of the largest aquafeed producers in China, has started to expand from feed production and seedling cultivation to aquatic product breeding, processing and forming a vertically integrated agricultural industry chain. Integrating photovoltaic power generation with modern fishery, the company intends to create a new 'aquaculture solar farm' model. It aims to establish this model to become the world's leading supplier of green agriculture and green energy.
Saturday, May 7, 2022
The rise of giant tiger shrimp in Chinese aquaculture
In 2020, the production volume of the giant tiger shrimp in China was 100,000 tonnes, with annual production expected to surge to 500,000 tonnes within the next five years. This shrimp has become one of the favourite species in shrimp farming. They can fetch high prices and thus, in recent years, many large-scale farms were established in Fujian and Guangdong, Jiangsu and Guangxi.
Saturday, April 30, 2022
Increased prices characterise India's aquafeed sector
India's fisheries and aquaculture sectors have registered an average annual growth of 7.53% in the last five years. Concerning aquafeed, around 1.4 million tonnes of shrimp feed was produced in India last year. But shrimp feed prices also increased two to three times in a year. Feed prices escalated in the same year as soybean, the main ingredient in feed, became costlier.
Saturday, April 23, 2022
Zhengchang Group: China's feed machinery pioneer steps on the gas for innovation
The pioneer of China's feed machinery industry started building feed machinery as early as 1973 and has since benchmarked the development of its products against advanced applications outside the country. Zhengchang Group’s business covers all parts of China. Globally, its operates in more than 80 countries and regions, providing high-quality services to more than 1,200 overseas customers.
Saturday, April 16, 2022
Analysing China's rising feed prices from a cost perspective
eFeedLink statistics show that the price of corn in China has risen to CNY2,700/tonne from CNY2,300 in late 2020. The price of soybean meal has risen during this period to CNY4,100/tonne from CNY3,200/tonne. With thin profit margins, feed producers are very susceptible to increases in raw ingredients prices. One can understand this situation by knowing what goes into the costs of creating animal feed.
Saturday, April 9, 2022
Indian aquaculture: Lower import duties on shrimps could further stimulate growth potential
Aquaculture is one of the fastest-growing sectors globally, and India accounts for about 15% of it. The country's aquaculture production was estimated to be around 14 million tonnes in 2021. However, while India has positive growth potential, the Indian sector is fraught with challenges.
Saturday, April 2, 2022
Major Chinese feed producers expanded market presence in 2021
Chinese feed enterprises were seeing major changes in the last two years. Firstly, the recovery of pig farming and the growth of aquatic and ruminant feeds helped to boost the output of feed mills. Secondly, there were 36 major feed companies with a production capacity of one million tonnes or higher last year. The combined output of these feed mills totaled 180 million tonnes, 50% higher than 120 million tonnes in 2019.
Saturday, March 26, 2022
India now fourth in feed production, costlier raw materials and supply chain issues challenge growth
For animal feed production, India registered a 12.2% growth in 2020. However, the country's feed industry is facing major, short-term challenges including high prices of raw materials and supply chain issues. Additionally, in the last two years, pandemic-related lockdowns affected the production and consumption of animal protein.
Saturday, March 19, 2022
Ukraine-Russia war: World faces a rude surprise, with upheaval in global grain trade
Markets that depend on wheat are getting the jitters over securing supply from Ukraine, a major wheat producer. Additionally, in terms of the significant disruptions to global supply, the country's corn is the same boat as its wheat. When grain prices would stabilise would be contingent on the outcome of talks between Kyiv and Moscow to end the war.
Saturday, March 12, 2022
China's road to becoming the world's top lysine producer
China ventured into lysine production in 1990, and this was led by Guangxi Guiyuan and Fujian Quanzhou Daquan. Several companies followed suit, but lysine output was limited pre-2000, with the country continuing to rely on imports. In 2000, China's lysine capacity was less than 10% of the global capacity of 800,000 tonnes.
Saturday, March 5, 2022
Chinese company profile: Guangxi Yangxiang
Founded in 1998, Guangxi Yangxiang's business covers feed, pig and pork productions and smart pig farming. Last year, it was the eighth largest pig breeding enterprise in China. From 2018 to 2020, its annual release volumes of pigs were 1,980,200, 1,422,500 and 2,137,600 heads respectively.
Saturday, February 26, 2022
China's pork producers aim for higher capacities - but pay a higher price
Pig prices in China plummeted from ¥36.01/kg (US$5.68) in early 2021 to ¥10.35/kg (US$1.63) in early October. This was followed by a rebound to ¥16.64/kg (US$2.62) within a month, an increase of over 60%. Prior to this development, one trend is the accelerated expansion of large Chinese pig-producing companies. When hog prices soared in 2020 and early 2021, these companies made huge investments to expand production capacity.
Saturday, February 19, 2022
India's low-cost milk production in need of further modern developments and keeping up with consumption
Dairy farming is an important secondary source of income for India's 70 million rural households that produce an estimated 210 million tonnes of milk annually. 40% of this amount is processed by private cooperatives and is mainly consumed in India. The average cattle holding has between one and two animals. The domestic milk production system is scattered over several dairy farms producing an average of less than 5kg milk per day.
Saturday, February 12, 2022
High feed costs intensify challenges for China's poultry
Surging feed costs have decimated the inventory growth of broilers. The average volume of broiler chickens, which stayed around 12 billion birds in January-November 2020, shrank to 11.7 billion in January-October 2021. Broiler slaughter volume in November 2021 plummeted by nearly 20% compared with that in November 2020.
Saturday, February 5, 2022
Ningxia Xiaoming: The layer poultry giant of China's Helan Mountain region
Ningxia Xiaoming Agriculture and Animal Husbandry owns a network that encompasses various, relevant sectors, ranging from hatching to sales in the layer chick industry. From 2017 to 2020, the average annual growth rate of Ningxia Xiaoming's layer chick sales reached 20.97%. Last year, the company established a new parent-stock layer breeder breeding division.
Saturday, January 29, 2022
Lihua's onward expansion in China's yellow feather chicken market
In 2020, Lihua Animal Husbandry, a major yellow feather broiler producer in China, slaughtered 323 million yellow broilers, a 12% increase year-on-year and accounting for 7.3% of the total national slaughter volume. With its own great grandparent stock (GGPS) breeding facilities, Lihua has been engaged in breeding yellow feather broilers and adopted the 'company-cooperative-farmer' business model.
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