Research Background

In 2008 China feed industry got great pressure from flat demand and waved feedstuff cost, causing large numbers of moderate and small scaled enterprises stopping production. And China breeding industry made losses in the second half year, so the whole industry is deteriorating.

In the external environment, labor cost increases among feed producers after the implementation of Labor Laws; low demand for livestock and meat products led to drowsy conditions in the whole industry chain. Meanwhile, extended scale of breeding houses severely weakened pricing capability, but it is favorable for the development of large-scaled feed producers. The market share of commercial feed is shrinking, especially in hog feed market, after slaughtering houses entering this industry and emerged integrating groups.

In the internal environment, some top feed companies have postponed listing in the stock market influenced by macro-economy. In the second half year, numbers of feed producers slowed down growing subject to short capital, but some large-scaled enterprises keep growing under foreign investment. The government strengthened the examination of feed producers after the Melamine Scandal, and some companies are disqualified.

It is predicted that demand for livestock products will keep low level in 2009, accordingly, feed industry will face great pressure. Therefore, the cost of feed stuff will be the key in next year’s feed industry development.

This report analyzes processing, consumption, trade, price in China feed industry on the basis of macro-economy, feedstuff market and livestock farming industry. And feedstuff is our main research targets, such as corn, soymeal, fishmeal, meat & bone meal, lysine & methionine, etc. as to gain an integrated development of feed industry in 2008. Meanwhile, competition among domestic enterprises and effects of international market are also our research target, and there is also a forecast for the development trend of the Chinese feed industry in 2009. This report gives an integrated analysis on the effects of Melamine Scandal.

This report is a joint product of the experts of the Livestock and Feed Department, Beijing Orient Agribusiness Consultants Ltd.. These senior livestock and feed analysts also make advice for relevant departments and associations, and keep a beneficial relationship with major feed enterprises, relevant industry enterprises, which provide precious information and data for this report, assuring the veracity, authority and forward looking. This is a rare report which shall be of great value for feed investors, producers, material suppliers, equipment suppliers and research institutes both at home and abroad to understand the development trend of the feed industry, to make decisions on the positioning of the enterprise and to formulate development strategies.

1 External Environment
1.1 China Macro-Economy and Effects
1.2 China Feed Legislation and Effects
1.3 China Grain Production and Effects
1.4 China Livestock Inventory and Effects
1.5 China Feedstuff Supply and Effects
1.6 China Grain Process Policy and Effects
2 Production & Consumption
2.1 Global Production in 2008
2.2 China Feedmill Structure in 2008
2.2.1 Structure by Enterprise Type
2.2.2 Structure by Product Type
2.2.3 Structure by Capacity of Complete Feed Producers
2.3 China Feed Demand in 2008
2.3.1 Effects of Livestock Inventory
2.3.2 Effects of Feed Price
2.3.3 Effects of Livestock Farm Size
2.3.4 Effects of Livestock Consumption
2.3.5 Effects of Commercial Feed
2.4 China Melamine Scandal and Effects in 2008
2.4.1 Melamine-polluted Milk and Effects
2.4.2 Melamine-polluted Egg and Effects
2.4.3 Its Effects on Feed Producers
2.4.4 Its Effects on Feedstuff
2.5 China Feed Supply in 2008
2.5.1 Feedmill Capacity
2.5.2 Feedstuff Cost
2.5.3 Feed Production
2.5.4 Feed Production of Large Feed Groups
2.5.5 Feed Production of Scaled Feedmills
2.6 China Feedmill Profit in 2008
2.6.1 Feed Cost (by Animal Species)
2.6.2 Feedmill Profit(by Scale)
2.6.3 Effects of Profit on Feedmill Scale
2.6.4 Effects of Direct Marketing on Feedmill Profit
2.7 China Feed Supply & Demand in 2008
2.7.1 Total Supply & Demand
2.7.2 Supply & Demand of Hog Feed
2.7.3 Supply & Demand of Meat-type Poultry Feed
2.7.4 Supply & Demand of Egg-type Poultry Feed
2.7.5 Supply & Demand of Aquatic Feed
2.7.6 Supply & Demand of Ruminant Feed
2.8 Feed Investment in 2008
2.9 Supply & Demand in 2009
3 Feedstuff Consumption
3.1 Feedstuff Consumption of Complete Feed
3.2 Feedstuff Consumption of Farm-mixed Feed
3.3.1 Feedstuff Consumption of Concentrates
3.3.2 Feedstuff Consumption of Pre-mixes
3.3 Feedstuff Consumption of Hog Feed in
3.4 Feedstuff Consumption of Meat-type Poultry Feed
3.5 Feedstuff Consumption of Egg -type Poultry Feed
3.6 Feedstuff Consumption of Aquatic Feed
3.7 Feedstuff Consumption of 2009
4 China Corn Market
4.1 Global Market
4.2 China Corn Supply
4.3 China Corn Demand for Feed Use
4.3.1 Demand and Price
4.3.2 Substitution of Other Feedstuffs
4.4 Consumption Structure of Corn for Feed Use
4.4.1 Structure by Complete Feed & Farm-mixed Feed
4.4.2 Structure by Animal Feed Type
4.5 China Corn Demand for Feed Use in 2009
5 China Soymeal Market
5.1 Global Market
5.2 China Soybean Supply
5.2.1 Domestic Supply
5.2.2 Imports
5.3 Soymeal Demand
5.3.1 Demand and Price
5.3.2 Substitution of Other Feedstuffs
5.4 Consumption Structure of Soymeal
5.4.1 Structure by Manufactured Feed & Farm-mixed Feed
5.4.2 Structure by Animal Feed Type
5.5 China Soymeal Market in 2009
6 China Fishmeal Market
6.1 Global Market
6.2 China Fishmeal Supply
6.2.1 Domestic Supply
6.2.2 Imports
6.3 China Fishmeal Demand
6.3.1 Demand and Price
6.3.2 Substitution of Other Feedstuffs
6.4 Consumption Structure of Fishmeal
6.4.1 Structure by Manufactured Feed & Farm-mixed Feed
6.4.2 Structure by Animal Feed Type
6.5 China Fishmeal Market in 2009
7 China Meat & Bone Meal Market
7.1 Global Market
7.2 China Meat & Bone Meal Supply
7.2.1 Domestic Supply
7.2.2 Imports
7.3 China Meat & Bone Meal Demand
7.4 Consumption Structure of Meat & Bone Meal
7.4.1 Structure by Manufactured Feed & Farm-mixed Feed
7.4.2 Structure by Animal Feed Type
7.5 China Meat & Bone Meal Market in 2009
8 China Lysine Market
8.1 Global Market
8.2 China Lysine Supply
8.2.1 Main Producers
8.2.2 Domestic Supply of 98.5? Lysine
8.2.3 Domestic Supply of 65? Lysine
8.2.4 Imports
8.3 China Lysine Demand
8.4 Consumption Structure of Lysine
8.4.1 Structure by 98.5? and 65? Lysine
8.4.2 Structure by Domestic Consumption and Exports
8.4.3 China Lysine Market in 2009
9 China Methionine Market
9.1 Global Market
9.2 China Methionine Supply
9.2.1 Domestic Supply
9.2.2 Imports
9.3 China Methinoine Demand
9.4 China Methionine Demand in 2009

Appendix
Figures
Figure 2.1, China Livstock & Poultry Slaughter and Feed Demand, 1998-2008
Figure 2.2, China Demand for Complete, Concentrated and Premixed Feed, 1998-2008
Figure 2.3, China Feed Output and Capability, 1998-2008
Figure 2.4, China Completed Feed Cost, 1998-2008
Figure 2.5, China Feed Output, 1998-2008
Figure 2.6, China Concentrated Feed Output and Proportion, 1998-2008
Figure 2.7, China Feedmills Structure (by Operations), 2008
Figure 2.8, China Feedmills Structure (by Products), 2008
Figure 2.9, China Complete Feedmills Capability, 2008
Figure 2.10, China Manufactured Feed Capability, 1991-2008
Figure 2.11, China Manufactured Feed Cost, 2006-2008
Figure 2.12, China Manufactured Feed Output , 1998-2008
Figure 2.13, China Scaled Feedmills Output, 2000-2008
Figure 2.14, China Feedmills Output (by Scale), 2000-2008
Figure 2.15, Supply and Demand of Manufactured Feed in China, 1998-2008
Figure 2.16, Supply and Demand of Hog Feed in China, 1998-2008
Figure 2.17, Supply and Demand of Meat-type Poultry Feed in China, 1998-2008
Figure 2.18, Supply and Demand of Egg-type Poultry in China, 1998-2008
Figure 2.19, Supply and Demand of Aquatic Feed in China, 1998-2008
Figure 2.20, Supply and Demand of Ruminant Feed in China, 1998-2008

Figure 3.1, China Main Feedstuff Consumption, 1998-2008
Figure 3.2, China Concentrated Feedstuff Consumption, 1998-2008
Figure 3.3, China Premixed Feedstuff Consumption, 1998-2008
Figure 3.4, China Hog Feedstuff Consumption, 1998-2008
Figure 3.5, China Meat-type Poultry Feedstuff Consumption, 1998-2008
Figure 3.6, China Egg-type Poultry Feedstuff Consumption, 1998-2008
Figure 3.7, China Aquatic Feedstuff Consumption, 1998-2008

Figure 4.1, Global Output and Consumption of Corn, 1998-2008
Figure 4.2, China Output and Consumption of Corn, 1998-2008
Figure 4.3, China Imports and Exports of Corn, 1998-2008
Figure 4.4, Imports and Exports Structure of Corn in China(by country), 2008
Figure 4.5, Price and Consumption of Corn for Feed Use in China, 1998-2008
Figure 4.6, Consumption of Corn for Feed Use and Other Feed in China, 1998-2008
Figure 4.7, Consumption Structure of Corn for Feed Use in Complete and Farm-mixed Feed in China, 2008
Figure 4.8, Consumption Structure of Corn for Feed Use in Animal Feed in China, 2008

Figure 5.1, Global Output and Crush of Soybean, 1998-2008
Figure 5.2, China Output , Imports and Crush of Soybean, 1998-2008
Figure 5.3, Regional Structure of Imported Soybean, 2008
Figure 5.4, Soybean Price and Crush in China, 1998-2008
Figure 5.5, Soymeal Price and Consumption in China, 1998-2008
Figure 5.6, Regional Structure of Imports and Exports of Soymeal in China, 2008
Figure 5.7, Consumption of Soymeal and Other Albumen Feed in China, 1998-2008
Figure 5.8, Consumption Structure of Soymeal in Complete Feed and Farm-mixed Feed in China, 2008
Figure 5.9, Consumption Structure of Soymeal in Animal Feed in China, 2008

Figure 6.1, Global Fishmeal Output, 1998-2008
Figure 6.2, China Output , Imports and Consumption of Fishmeal, 1998-2008
Figure 6.3, Regional Structure of Imported Fishmeal, 2008
Figure 6.4, Fishmeal Price and Consumption for Feed in China, 1998-2008
Figure 6.5, Consumption of Fishmeal and Other Albumen Feed in China, 1998-2008
Figure 6.6, Consumption Structure of Fishmeal in Complete and Farm-mixed Feed in China, 2008
Figure 6.7, Consumption Structure of Fishmeal in Animal Feed in China, 2008

Figure 7.1, Global Meat & Bone Meal Output, 1998-2008
Figure 7.2, China Output , Imports and Consumption of Meat & Bone Meal, 1998-2008
Figure 7.3, Regional Structure of Imported Meat & Bone Meal, 2008
Figure 7.4, Meat & Bone Meal Price and Consumption for Feed in China, 1998-2008
Figure 7.5, Consumption of Meat & Bone Meal and Other Albumen Feed in China, 1998-2008
Figure 7.6, Consumption Structure of Meat & Bone Meal in Complete and Farm-mixed Feed in China, 2008
Figure 7.7, Consumption Structure of Meat & Bone Meal in Animal Feed in China, 2008

Figure 8.1, Global Lysine Output, 1998-2008
Figure 8.2, China Output , Imports and Consumption of Lysine, 1998-2008
Figure 8.3, China Lysine Production (by Regions), 2008
Figure 8.4, China Lysine Production (by Enterprises), 2008
Figure 8.5, Structure of Exported Lysine in China(by destination countries), 2008
Figure 8.6, Lysine Price and Consumption for Feed in China, 1998-2008
Figure 8.7, Consumption Structure of Lysine in Complete, Concentrated and Farm-mixed Feed in China, 2008

Figure 9.1, Global Methionine Output, 1998-2008
Figure 9.2, China Imports and Consumption of Methionine, 1998-2008
Figure 9.3, Structure of Imported Methionine in China(by original countries), 2008
Figure 9.4, Methionine Price and Consumption for Feed in China, 1998-2008
Figure 9.5, Consumption Structure of Methionine in Complete, Concentrated and Farm-mixed Feed in China, 2008

Tables
Table1, China Manufactured Feed Production (by provinces), 2008
Table 2, Monthly Output of Scaled Feedmills in China, 2008
Table 3, China Complete Feed Output(by provinces), 1998~2008
Table 4, China Hog Complete Feed Output(by provinces), 1998~2008
Table 5, China Egg-type Poultry Complete Feed Output(by provinces), 1998~2008
Table 6, China Meat-type Poultry Complete Feed Output(by provinces), 1998~2008
Table 7, China Aquatic Complete Feed Output(by provinces), 1998~2008
Table 8, China Ruminant Complete Feed Output(by provinces), 2001~2008
Table 9, China Output of Other Complete Feed (by provinces), 2001~2008
Table 10, China Concentrated Feed Output(by provinces), 1998~2008
Table 11, China Premixed Feed Output(by provinces), 1998~2008
Table 12, China Complete Feed Consumption(by provinces), 1998~2008
Table 13, China Hog Complete Feed Consumption(by provinces), 1998~2008
Table 14, China Meat-type Poultry Complete Feed Consumption(by provinces), 1998~2008
Table 15, China Egg-type Poultry Complete Feed Consumption(by provinces), 1998~2008
Table 16, China Aquatic Complete Feed Consumption(by provinces), 1998~2008
Table 17, China Concentrated Feed Consumption (by provinces), 1998~2008
Table 18, China Premixed Feed Consumption(by provinces), 1998~2008
Table 19, Retail Prices of China Hog Complete Feed (by provinces), 2008
Table 20, Retail Prices of China Broiler Complete Feed (by provinces), 2008
Table 21, Retail Prices of China Layer Complete Feed (by provinces), 2008
Table 22, Retail Prices of China Corn, 2008
Table 23, Retail Prices of China Soymeal, 2008
Table 24, Retail Prices of China Imported Fishmeal,2008
Table 25, China Consumption of Corn for Feed, 1998~2008
Table 26, China Corn Consumption in Complete Feed, 1998~2008
Table 27, China Corn Consumption in Farm-mixed Feed, 1998~2008
Table 28, China Corn Exports (by Destination Country/Region), 2008
Table 29, China Corn Imports (by Original Country/Region), 2008
Table 30, China Soymeal Consumption for Feed, 1998~2008
Table 31, China Soymeal Consumption in Complete Feed, 1998~2008
Table 32, China Soymeal Consumption in Concentrated Feed, 1998~2008
Table 33, China Soymeal Exports (by Destination Country/Region), 2008
Table 34, China Soymeal Imports (by Original Country/Region),2008
Table 35, China Fishmeal Output (by provinces), 1998~2008
Table 36, China Fishmeal Consumption for Feed, 1998~2008
Table 37, China Fishmeal Consumption in Complete Feed, 1998~2008
Table 38, China Fishmeal Consumption in Concentrated Feed, 1998~2008
Table 39, China Fishmeal Imports (by Origianal Country/Region), 2008
Table 40, China Fishmeal Balance Sheet, 2000~2009
Table41, China Meat & Bone Meal Output(by provinces), 1998~2008
Table42, China Meat & Bone Meal Consumption for Feed(by provinces), 1998~2008
Table 43, China Meat & Bone Meal Consumption in Complete Feed, 1998~2008
Table 44, China Meat & Bone Meal Consumption in Concentrated Feed, 1998~2008
Table 45, China Meat & Bone Meal (Beef, Sheep) Imports (by Origianal Country/Region),2008
Table 46, China Other Meat & Bone Meal Imports (by Origianal Country/Region),2008
Table 47, China Meat & Bone Meal Balance Sheet, 2000~2009
Table 48, China Lysine Output(by provinces), 1998~2008
Table 49, China Lysine Imports (by Origianal Country/Region), 2008
Table 50, China Lysine Exports (by Destination Country/Region), 2008
Table 51, China Lysine Ester & Salt Imports (by Original Country/Region), 2008
Table 52, China Lysine Ester & Salt Export (by Destination Country/Region), 2008