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National Feed Production Situation in July 2020

Release date:

2020-08-29

I. Production Status

As of August 6, according to calculations based on data submitted by enterprises, total feed production in July 2020 reached 21.9 million tons, representing a month-on-month increase of 7.3% and a year-on-year rise of 16.0%. Looking at the trend, total feed output saw month-on-month growth in March, April, June, and July, with July’s growth rate expanding by 5.1 percentage points compared to the previous month. Excluding February—when output dipped slightly year-on-year—production figures for all other months have remained higher than the same period last year. In particular, July’s feed output hit a nearly three-year high, surpassing the monthly average recorded since 2017. By product type, pig feed production in July totaled 7.01 million tons, up 10.3% from the previous month and soaring 36.8% year-on-year—a second consecutive month of double-digit growth. Notably, sow feed production surged by 77.8% year-on-year. This robust growth was driven by several key factors: accelerated recovery in hog production capacity compared to the same period last year; lower-than-normal feed output in the prior year due to market conditions; rising expectations of feed price increases, prompting farmers to stockpile supplies ahead of time; an increasing shift from self-mixed to commercially available feed formulations among sow farmers; a growing proportion of three-way crossbred sows—which consume more feed—leading to higher overall feed demand; and the widespread adoption of secondary fattening practices for market pigs, further boosting feed consumption. Meanwhile, egg-laying and meat poultry feed production stood at 2.81 million tons and 7.95 million tons, respectively, marking month-on-month increases of 2.0% and 2.7%. However, year-on-year growth rates for these segments continued to moderate, rising by 12.8% and 9.6%, respectively. Aquaculture feed output climbed to 2.76 million tons in July, reflecting a substantial month-on-month jump of 20.5%, though it still declined slightly by 4.2% compared to the same period last year. Conversely, ruminant feed production rose sharply by 8.6% month-on-month and surged by 24.6% year-on-year, underscoring strong momentum in this sector.

2. Feed Product Price Trends

In July, sustained increases in corn prices drove up the costs of energy feed ingredients like wheat bran, leading to a general rise in compound feed prices. As a result, prices for major feed varieties climbed by 5.3% to 6.0% compared to the same period last year. Meanwhile, soybean meal prices remained relatively strong amid volatile market conditions, pushing up protein feed ingredient costs to varying degrees. Notably, while egg poultry concentrate feed prices edged down slightly year-on-year, prices for other types of concentrate feed surged by 0.5% to 3.4% compared to the previous year. Pre-mixed feed prices, however, continued to decline modestly on an annual basis.

Note: Monthly feed production data are as of 8 Month 6 The reported enterprise estimates have been submitted; nationwide feed production figures will be officially released on an annual basis.

Source: Bureau of Animal Husbandry and Veterinary Medicine, Ministry of Agriculture and Rural Affairs National Animal Husbandry Station China Feed Industry Association

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