jueves 5 de marzo de 2009

Consolidation in China Livestock Market

In 2008 residents in China reduced meat procurement and outside repast influenced by macro-economy, causing dramatically decreasing livestock products consumption and supply surplus appeared in hog breeding industry, even slaughtering sow in partial areas. And broiler and layer breeding houses are remaining unstable conditions. Large producers are severely affected by Melamine Scandal which also influenced the whole chain.

The Government continuously strengthens breeding industry in policy level, including subsidy for breeding sow and insurance for raising hog in partial areas; support for cow farming; subsidy for breeder layer zones. However, the government takes no nationwide supportive measures on meat-orientated cattle and sheep breeding, although which kept a low inventory. The economic plans issued in the end of this year are aimed to accelerate animal epidemic prevention system and official veterinary system.

Private farmers are eliminated in current market operation model and large-scale breeding houses keep expanding. More breeding cooperation emerged in local regions. Famous feedstuff producers and slaughtering companies entered this industry with foreign investment, so
it is expected that about 20 super integrating enterprises will appear in China in the coming 3-4 years.

People show pessimistic attitude to macro-economy in 2009. However, it is expected that foodstuff will be sufficiently supplied thanks to increasing grains yield and purchasing price, stabilizing the cost of feedstuff, which will actively ensure livestock product consumption and gaining profit among breeding houses.

MoreInfo
ReportChineseHogIndustry
ReportBeefIndustry


By Rachel Thompson and experts of the Livestock and Feed Department, Beijing Orient Agribusiness Consultants Ltd.

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