|
|
 |
|
Viewing report
|
|
|
|
China Livestock and Feed Market 2006 - 2007
eFeedLink, April 2007, Pages: 199
2006 was a difficult year for China's livestock and feed sectors. The previous year's disease outbreaks strongly curtailed demand while forcing some form of mass culling of hogs and poultry, setting the stage for early 2006's low replenishment rates of hogs and poultry. Besieged by high costs and low demand, farmer's incentive to not replenish stocks was further reinforced by the second quarter's outbreaks of bird flu, further destroying the incentive to replenish exceptionally low livestock inventories.
This not to say the situation was completely dim. Ruminants' supply and demand was unaffected by animal disease outbreaks and continued growing at a healthy rate. Similarly, aquaculture's natural immunity to land animal diseases escaped the first half's strong recession, with both supply and demand growing at double digit rates, though at a slightly slower pace than previous years.
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.
In the second half of 2006, demand finally overtook livestock supplies, pushing up both prices and replenishment rates. By then however, the damage had been done: at 8.9 million tonnes, aggregate feed production was 8.29%, less than the previous year and except for aquaculture. Similarly, most livestock inventories were at the same or lower levels than in 2005. Barring unexpected disease outbreaks or other exceptional events, in 2007, we expect replenishment rates to recover, livestock inventories to rise, and with them, feed demand. All other things being equal, under these conditions, feed demand will resume growing and most feed suppliers will return to profitability.
However, the livestock sector's ongoing recovery belies the rumblings of strong market pressures and deep restructurings in both animal production and feed manufacturing. New industries are emerging, older ones are topping out or declining, and everything from feed material sourcing to government legislation hangs in the balance.
The 4-page executive summary of the full report provides an overview of 2007's strongest trends and the forces which will drive the industry. They are:
Accelerating consolidation of livestock & feed companies
The unresolved dilemma of growing corn demand
Foreign firms dominate key grain markets
Fishmeal and its imperfect substitutes
Stricter government regulation required for increased exports and import substitution
All of the key factors mentioned above did not arise spontaneously or in isolation from one another. They are the visible tops of a long chain of market events that effect one another in a synergistic, holistic manner.
By that portion of the feed raw material base they share in common, soy meal and fishmeal profoundly influence one another. The high existing level of consolidation in China's soy bean, soy crushing and soy meal sectors would could make a foreign takeover of the corn sector happen quickly should corn imports be allowed in.
The big picture is made up of many key details, trends and interrelated facts –integrated, individual pieces of knowledge which together, deliver the value and key content you will find in this report. Regardless of your place in the livestock, grain, feed or related industries, this is one report which you must read to help you do a better job.
Customers who bought this item also bought
China Feed Market Review & Outlook
China feed market review & outlook 2008-2009 proposal
China Livestock and Feed Weekly Market Report
2005-2006 Annual Report on China Feed Market Review & Outlook
The 2009 Report on Animal and Marine Feed and Fertilizer Byproducts Excluding Meat and Bone Meal: World Market Segmentation by City
Special Report on China’s Rapeseed Oil Market
The Survey of Methionine (Feed Grade) in China
China Feed Enzyme Market 2006 - 2007
The 2009-2014 World Outlook for Animal and Marine Feed and Fertilizer Byproducts Excluding Meat and Bone Meal
China Feed Industry Report, 2008-2009
Regional Analysis of China’s Broiler Production Industry
Feed Acidifiers - Global Strategic Business Report
|
|
|
|
