Chinese feed and livestock back on track

2006 was a difficult year for China’s livestock and feed sectors, mainly as a
result of bird flu outbreaks. This had a huge impact on the pig and poultry
numbers. Ruminants were unaffected by these disease outbreaks and continued
growing at a healthy rate. Similarly, aquaculture’s supply and demand increased.
However, these two sectors account for a relatively smaller portion of feed
demand and animal production. Hence, ruminants and aquaculture’s relative
prosperity could not prevent an overall decline in livestock production and
animal feed demand.

Feed demand will rise
In the
second half of 2006, demand finally overtook livestock supplies, pushing up both
prices and replacement rates. In 2007, it is expected that the replacement rates
will recover, livestock inventories rise, and subsequently will the feed demand.
All other things being equal, under these conditions, feed demand will resume
growing and most feed suppliers will return to profitability.
The report
The 4-page executive summary of the
full report provides an overview of 2007’s strongest trends and the forces
which will drive the Chinese industry. They are: Accelerating consolidation of
livestock & feed companies, the unresolved dilemma of growing corn demand,
foreign firms dominate key grain markets and fishmeal and its imperfect
substitutes.

Related link:
Research and Markets

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