Broiler and duck feed led the growth in 2016, as the sector recovered from an avian influenza-driven dip in production during 2013-14. Swine feed output recovered slightly after declining during 2015. Feeds for laying hens, aquaculture, ruminants and other livestock grew modestly.
Production of complete compound feed grew 5.4 million metric tons (3.1%) and output of additives and premixes grew 185,000 metric tons (2.8%). Output of feed concentrates fell 1.26 mmt (-6.4%). Meat poultry and hogs accounted for most of the growth in compound feed, probably reflecting growing popularity of the "company + farmer" vertical linkage model in which companies supply farmers with piglets/chicks, specially formulated feed, and veterinary medicines.
The statistics reported 191.5 million metric tons of raw materials were used by feed manufacturers during 2016. (Note that this is not an exhaustive measure of all feeds used in China--many farms use their own feed materials or mix them on their farm.) Corn accounted for more than half of raw materials used by China's feed manufacturing industry, with a total of 105 mmt used. The amount of corn used by feed manufacturers in China increased 21.5 percent last year, according to the report. Feed manufacturers used 11 mmt of wheat, which declined 22 percent during 2016. The increase in corn use was likely a response to a 14.4-percent decrease in wholesale corn prices in 2016. The support price for corn was cut 10-percent for the 2015/16 market year, and elimination of the policy was announced in April 2016. Wheat is now an expensive feed material relative to corn, since its price is still supported by a minimum price policy.
|China animal feed industry use of raw materials, 2016|
|Raw materials||2016 Use||Change|
|Million metric tons||Percent|
|All raw materials||191.49||7.0|
|other raw materials||20.47||-1.0|
|Source: China Feed Industry Office.|
The statistics show decreased use of the major types of protein meals during 2016. Soybean meal was the second-largest ingredient used by feed manufacturers, with a total of 37.8 mmt used during 2016. Soybean meal use by the feed industry decreased 1 percent during 2016, according to the statistics. The average price of soybean meal fell 3.1 percent in 2016. Rapeseed meal use totaled 4.5 mmt and was down 5 percent. Fish meal use declined 39 percent, and cottonseed meal use fell 18 percent. Use of "other meals"--which likely includes peanut, sesame, and sunflower meals--totaled 4.9 mmt and increased 13.2 percent.
Use of "other" raw materials totaled 20.47 mmt. This may include sorghum, distillers grains, and barley--grains that were widely used as substitutes for corn. However, the report says use of "other" raw materials declined only 1 percent during 2016, but customs statistics said imports of these grains declined by a much larger 40-50 percent last year.
Bags of soybean meal and feed mixing apparatus at a Chinese pig farm: