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Ten trends in the development of feed industry
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Ten trends in the development of feed industry

  • Categories:Industry News
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  • Time of issue:2018-04-24 17:34
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(Summary description)Industry prospects    my country's animal breeding and feed processing industry is entering a mature stage after more than 20 years of rapid development. Under the fierce market competition environment, business operators have to expand their scale and achieve profitability, and their pressure is very great. The feed industry is facing a pattern of big development, big competition and big elimination.   The analysis of relevant agencies believes that the feed industry will show the following development trends in the next five years.   1. More than 30% of the companies withdrew.    In 2009, there were 12,291 feed processing companies nationwide, a year-on-year decrease of 1,321, and a decrease of 9.7%. With the scale of aquaculture

Ten trends in the development of feed industry

(Summary description)Industry prospects    my country's animal breeding and feed processing industry is entering a mature stage after more than 20 years of rapid development. Under the fierce market competition environment, business operators have to expand their scale and achieve profitability, and their pressure is very great. The feed industry is facing a pattern of big development, big competition and big elimination.   The analysis of relevant agencies believes that the feed industry will show the following development trends in the next five years.   1. More than 30% of the companies withdrew.    In 2009, there were 12,291 feed processing companies nationwide, a year-on-year decrease of 1,321, and a decrease of 9.7%. With the scale of aquaculture

  • Categories:Industry News
  • Author:
  • Origin:
  • Time of issue:2018-04-24 17:34
  • Views:
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Industry outlook

After more than 20 years of rapid development, my country’s animal breeding and feed processing industries are entering a mature stage. Under the fierce market competition environment, business operators have to expand their scale and achieve profitability, and their pressure is very great. The feed industry is facing a pattern of big development, big competition and big elimination.

The analysis of relevant agencies believes that the feed industry will show the following development trends in the next five years.

One, more than 30% of companies exit

In 2009, there were 12,291 feed processing enterprises nationwide, a year-on-year decrease of 1,321, or 9.7%. With the substantial increase in the scale of the aquaculture industry and the further reduction in profitability of feed companies, this trend will continue or even deepen. In the next five years, more than 30% of feed companies will actively or passively withdraw from the market.

2. Enter the era of high cost

With the development of economy and society, with the national income doubling plan proposed by the country, as the raw material market is in line with international standards, in the next 5 years, although feed companies are reluctant, the feed industry will usher in an era of high costs.

Three, the industry enters the capital era

With the improvement of the maturity of the feed industry, its labor-intensive and capital-intensive industry characteristics will gradually appear and dominate, and more feed companies will seek to go public. In the face of the power of capital, small and medium-sized enterprises will become the target of hunting.

Fourth, usher in the information revolution in an all-round way

Times are developing, business can be traditional, but tools must be updated. In the next 5 years, the feed industry will become more IT and networked. Different from the original office automation and website construction, this round of information revolution will be characterized by e-commerce, network technology service platforms, and efficient network management platforms.

Our society is being fully informatized, and the feed industry will inevitably be fully informatized. For feed companies, not advancing with the times means backwardness, and backwardness will be beaten.

5. Enter the era of "mixed business"

For example, New Hope has created three complete industrial chains for the pig, poultry, and dairy industries. Another example is Zhengbang and Aigefei, which have entered the pig farming field in recent years to build the pig industry chain. More companies are involved in breeding, or in the fields of veterinary medicine and vaccines. In the next 5 years, the "mixed operation" phenomenon in the feed industry will become more prominent, because only by extending the industry chain can we better improve the ability to resist risks. It is expected that the industry chain will become the mainstream choice for first-line feed companies.

6. ​​Exploring the "Third Industry" of Nuggets

As a manufacturing industry with an output value of more than 400 billion yuan, the feed industry should be supported by a strong tertiary industry. In the next 5 years, the "tertiary industry" of the feed industry is expected to develop rapidly. This is the natural requirement of industrial development, and the second is the demonstration effect brought by the establishment of "guarantee companies" and "specialized breeding service companies" by pioneers such as Liuhe.

Seven, large-scale specialization exceeds expectations

The low level of scale and low level of specialization of the aquaculture industry has always been a major issue affecting the development of the industrial chain. With the country’s support for the large-scale aquaculture industry, the scale and specialization level of the aquaculture industry is expected in the next 5 years. There will be a big improvement, and it will exceed many people's expectations.

8. Corn-soybean meal status declines

my country’s national conditions are not suitable for corn-soybean meal-based ration structure. The current domestic corn-soybean meal-based ration structure can be said to be a classic market promotion case for international grain merchants. However, with the high prices of corn and soybean meal and the decline in profit margins of feed products, the diet structure will be impacted by the market. In the next 5 years, more grains and miscellaneous meal-based diets will appear on the market, and the corn-soybean meal-based diet structure will be significantly weakened.

Nine, obvious price fluctuations become normal

After China joined the WTO, my country's economy began to quickly integrate into the entire economy, and this trend will become more pronounced and deepened in the next five years. Due to the profitability of capital, the apparent volatility of the prices of bulk agricultural products in the world is inevitable and normal. In the future of global economic integration, China’s feed companies must expect the prices of bulk raw materials to fluctuate and normalize. The price status of bulk raw materials will be broken.

10. Health will become productivity

Consumer demand for animal food has gone through several stages from scratch, from less to more, from more to full, and from full to fresh. At present, with the further improvement of living standards and consumption power, people are more concerned about food safety and health, and the concept of green and organic food has been deeply rooted in the hearts of the people. This creates opportunities for companies to increase the added value of their products. In the next 5 years, the "health brand" will become the source of competitiveness for some industry chain companies and gain differentiated competitive advantages.

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Time of issue:2020-07-22 00:00:00
Sanjia Feed
Sichuan Mianzhu Sanjia Feed Co., Ltd.

Address: Xiadonglin Village, Xinshi Town, Mianzhu City, Sichuan Province

Office: 0838-6504428

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