Contents:

SECTION 1: Corn Overview of China's corn market in 2006 Overview of corn supply in 2006 The dilemma of diminishing marginal returns China's corn output and acreage Review of 2006 corn demand and its impact on supply, prices & inventory Key factors driving China's corn demand The nature of China's industrial corn demand Review of price movements and factors influencing prices in 2006 Effect of imports & corn export quotas on price movements End of the traditional 3rd quarter corn price drop? China's transition from a net corn exporter to a net corn importing country SECTION 2: Soy Overview of China's soybean and soymeal market in 2006 Market analysis of supply in 2006 Seasonal factors in China's soybean supply Review of locally produced and imported soy price movements Analysis of China's dependence on international soy markets Suppliers & users of imported soybeans Status of China's soy crushing sector Structural composition of China's soy crushing industry Expanding role and influence of foreign owned crushers Influence of China's soy crushing industry on domestic feed industry in 2006 Analysis of soymeal supply and demand in China China's soymeal market characteristics by month in 2006 Distribution of China's major soymeal producers and crushers Analysis of interactions between China's soybean, soy oil and soymeal markets Analysis of relationship between soy futures market and spot prices Interaction between soymeal and substitute feeds rapeseed and cottonseed meal Interaction between soymeal and fishmeal Analysis of changes to China's livestock production and impact on soymeal market Output, import and export situations of major soybean-producing countries Forecast for China's soymeal market and impact on livestock production Cost SECTION 3: Rapeseed, cottonseed, rapeseed meal & cottonseed meal Overview of China's rapeseed and cottonseed markets Analysis of output and supply for rapeseed and rapeseed meal Overview of rapeseed meal supply Price trend of rapeseed meal Analysis of rapeseed import-export data Overview of China rapeseed meal demand Forecast rapeseed meal supply, demand and prices in 2007 Analysis of output and supply for cotton and cottonseed meal Analysis of cotton output China cottonseed meal supply Analysis of China's cottonseed meal demand Price trend of China cottonseed meal Analysis of factors affecting cottonseed meal prices in China Forecast of cottonseed meal market in 2007 2 Analysis of rapeseed and cottonseed crushing industry Distribution of rapeseed crushers and key rapeseed-supply regions Profile of major rapeseed crushers Distribution of cottonseed crusher and cottonseed meal production regions Profile of major cottonseed crushers Impact of rapeseed, cottonseed and edible oil prices on rapeseed meal and cottonseed meal prices Analysis of the price relationship between rapeseed, cottonseed and soy meals Major rapeseed producers, importers and exporters SECTION 4: Fishmeal Overview of China's fishmeal market Analysis of fishmeal supply, demand and imports China's livestock market and its impact on fishmeal prices Monthly distribution of fishmeal imports and its influence on spot prices Price trends in locally produced and imported fishmeal Imported fishmeal prices Domestic fishmeal prices Fishmeal imports and their impact on international and domestic markets Analysis of factors that keep China's fishmeal prices high Growing demand and falling domestic output Changes in procurement methods and their effect on China's fishmeal trade Falling output from major fishmeal producers Rising demand from other fishmeal importing countries Tightness in global supplies of animal protein meals Analysis of changes in China's fishmeal demand Changes in fishmeal prices and their effect on feed mills production cost Price relationship of fishmeal, lysine and soymeal Consequences of China's growing dependence on fishmeal imports Research into fishmeal substitutes Fishmeal forecast for 2007 SECTION 5: Other feed proteins: peanut meal and meat-and-bone meal Overview of China's peanut meal market China 2006 peanut output data and analysis China peanut planting area distribution 2006 China peanut meal market supply situation China peanut meal market price movements Effects of substitution between peanut meal and soymeal/rapeseed meal/ cottonseed meal China peanut crushing enterprise distribution Major peanut producing countries and their effect on China's import and export Overview of China's meat-and-bone meal market Problems in China's domestic meat-and-bone meal supply Trends in meat-and-bone meal imports Meat-and-bone meal demand Price trends in China's meat-and-bone-meal market Substitution relationship between meat-and-bone meal and fishmeal 2007 China meat-and-bone meal market forecast SECTION 6: China's feed processing industry Overview of China's feed processing industry China's feed production market in 2006 Feed demand by location Analysis of China's feed production from 2003 to 2006 A two tier feed market Analysis of feed market demand trends Impact of China's changing livestock rearing market on feed sales Impact of China's feed raw materials on the returns from livestock rearing Impact on hog feed Impact on fishmeal Impact on poultry feed Impact on corn feed China's feed market forecast for 2007 Impact of changes in livestock rearing methods on feed processing market Impact of higher skills on rearing techniques and the feed processing market Advanced feed's effect on suckling pigs Impact of advanced aquaculture rearing techniques on the aqua feed market New developments in the dairy cow feed market Detailed analysis of the benefits of integrated feed production The dilemmas faced by smaller feed producers The rise of integrated producers (producing both livestock and feed) A brief overview of leading integrated producers The pros and cons of integrated feed production companies Advantages of integrated feed production companies Disadvantages of integrated feed production companies Summary of 2006 feed industry performance History and trend of the feed industry from 1980 to 2015 Profitability and returns from the feed processing industry Current market status of leading feed processing enterprises Long-term forecast for the feed industry Overview of China's feed processing industry SECTION 7: China's livestock industry Overview of the livestock industry Market situation and price trends for hogs & piglets Analysis of Hog feed consumption Feed types consumed by region and farm scale Hog rearing profit analysis Hog farming trends & characteristics in 2007 Analysis of hog slaughtering China's top hog meat processors Three distinct hog meat-processing business models in China Effects of inter-provincial hog deliveries on local hog markets Shanghai and Nanjing area Beijing and Tianjin region Guangdong and Shenzhen region Market situation and price trends for white feather broiler prices Price trends of white feather broilers Price trends of fast-growth broilers Price trends of Chinese-style medium-growth broilers Price trends of slow-growth broilers Statistics and analysis of broiler inventory and replenishment levels Price trend of white-feather broiler day-old chicks Price trend of China fast-growth broiler day-old chicks Price trend of medium-growth broiler day-old chicks Price trend of China slow-growth broiler day-old chicks Analysis of broiler feed consumption among different regions Analysis of usage of broiler feed in the eight key production areas Cost and profit analysis of broiler breeding in 2006 Analysis of profit and cost of rearing white-feather broilers Analysis of profit and cost of rearing medium-growth broilers Analysis of profit and cost of rearing slow-growth broilers Analysis of broiler types and characteristics Broiler types & characteristics by region Trends in broiler demand by type A short history of broiler breeding in China Analysis of imports and exports of China broiler meat and products Analysis of the export of chicken meat and chicken meat products Analysis of chicken meat imports Performance of China's slaughterhouses and meat processing enterprises in 2006 Analysis of China's broiler sourcing regions Dominant broiler market producing regions Analysis of China egg market and its effects on the feed market Price trend of eggs Price trend of layers Analysis of layer feed demand in various regions Analysis of layer types and feed types in China Analysis of the role played by key regional egg markets Analysis of the national eggs distribution infrastructure SECTION 8: Minerals, trace elements, vitamins and choline chloride usedin feed Overview of the trace elements market Calcium phosphate market and forecast China's domestic production of calcium phosphate Role of phytase and other calcium phosphate substitutes Demand for calcium phosphate in China Price trends and factors affecting China's calcium phosphate market Analysis of 2006 market for China's dicalcium phosphate Factors affecting China's dicalcium phosphate production in 2006 Price trend of dicalcium phosphate Developments in China's dicalcium phosphate industry Major phosphate mining regions New developments among phosphate mining companies 2007 forecast for China's calcium phosphate industry Overview of other feed use trace minerals markets –copper, zinc, bronze, manganese and ferrous sulphate Bronze sulphate market characteristics Ferrous sulphate market characteristics Zinc sulphate market characteristics Manganese sulphate market characteristics Bronze sulphate and its spot market Zinc sulphate market and its spot market Ferrous sulphate and manganese sulphate Emerging trace elements and their manufacturers Overview of the market for vitamins Price trends in vitamins Overview of the market for choline chloride Choline chloride production and industry trends 2006 choline chloride import and exports

Summary:

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.

Companies Mentioned

Archer Daniel Midlands (AMD), Cargill, Bunge, Louis Dreyfus, Cargill Group Jiangsu Nantong Crusher, Guangzhou Zhizhiyuan Oil Co Ltd, Heilongjiang Jiusan Group, China National Cereals, Oils and Foodstuffs Corp (CORCO), Dalian Huanong, Wilmar Holdings, Jinshi, Hopefull, Nobel, Dongliang, Fuhong, Zhongliang Xiangduan Oil (Jinmen) Ltd, Hubei Riyue Oils Ltd, Jiangsu Yixing Sihai Oils Ltd, Sichuan Jinzita Oils Ltd, Hunan Balin Oils & Chemicals, Shandong Dongying Shenyuan Youmiang Processing Limited, Xiajing Xian Hengxing Oil & Fats Limited, Hebei Zhengxing (Group) Shareholdings, Hebei Changan Oils & Fats Pte Ltd, Sichuan Tongwei Group, Fujian Aqua Feed Association, Fujian Eal Association, Xinyang Wanfu Oils & Fats Co ltd, Anhui BBCA Edible Oils Co Ltd, Shandong Luhua Group, COFCO ADM Oils & Grains Industries (Heze) Co Ltd, Qingdao Pinpinhao Grains & Oils Pte Ltd, Kede Group, Chia Tai Group, Hope Group, Tongwei Group, East Hope Group, Sichuan Southern China Hope Group, Beijing Weijia Group, Liaoning Binfeng Group, Sichuan Tongwei Group, Beijing Huadu Group, Beijing Tiaozhan Group, Beijing Daibeinong Group, Ningbo Tianbang Group, Hunan Yuitai Group, Hunan Tangrenshen Group, Sichuan New Hope Group, Henan Aipu Group, Sha'anxi Hanbao Group, Sichuan Tieqilishi Group, Holland Taigao International Group, Jiangxi Shuanbaotai Group, Jiangxi Zhengbang Group, Fujian Huagang Group, Changchun Dacheng Group, Taiwan Tongyi Group, Wuhan Licheng Feed Group, Beijing Meihao Hope Co, Fuhu Hope Feed Co, Leshan Jindou Feed Co, Xiamen Findou Feed Co, Guangdong Wenshi Food Holdings Ltd, Beijing Dafa Chia Tai Ltd, Anhui Taiyang Poultry Ltd, Guangdong Henxing Group, Shandong Xisen Sanhe Group, Shanghai Guangming Hesitan Dairy Group, Henan Shuanghui Group, Guangdong Shuanghui Food Ltd, Hunan Zhenghong Group, Shandong Liuhe Group, Goldman Sachs, Zhucheng Trading, Changle Legang, Yanggu Farmbros, Tengzhou Yintai, Weifang Yuhe Group, Sichuan Lomon Corporation, Sichuan Chuangheng Chemical, Sichuan Jiuyuan Group, Hunan Zhongbao Feed, Guangxi Yuanchen Co, Guanxi Tianhongxin, Sichuan Shuying Feed Additive Co, Hunan Dongbao Feed, Guangxi Yongfong Feed, Guangxi Wuxing Feed, Guangxi Nanning Junwei Feed Co, Hunan Dongda Feed, Zhejiang Fuyang Xinxing Co, Guangdong Kangtai Feed, Shandong Laigang, Sichuan Guanghan Longda Feed, Sichuan Combell Feed, Jiangxi Yonghui, Hunan Jingshi Feed, Hebei Yuanda Feed, Shandong NB Group, Shandong Aocter Chemicals, Shandong Gaotang Group, Shandong Bilong Jujia Choline Chloride Company, Xuzhou Havay Feed Co, Akzo Nobel