Livestock farming profit in China in 2012 shrunk a lot compared with 2011. Hog price dropped and ran at low level continuously, profit of hog farming industry was basically around low level since the beginning of the 2nd Quarter. Profit level of broiler farming industry dropped as well due to the decreasing chicken price, certain enterprises with poor management even suffered serious deficit. For layer breeding industry, market condition was quite gloomy and certain enterprises shut down gradually from production capacity surplus in the first half of 2012, egg price increase was noted till the 3rd Quarter, which dropped again in the 4th Quarter. In spite of the price increase of beef and mutton, increase of breeding profit level was not that obvious. In conclusion, continuous increasing cost and slower consumption demand are the major factors that caused the decreasing livestock-poultry breeding profit level.
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Under the gloomy condition of
livestock industry in China in 2012, adjustment in terms of production capacity
and farming structure was noted, profit difference was becoming more obvious.
Business operation for small scale enterprises was harder and harder, while the
business of standardized, industrialized and automated medium-large scale
enterprises was expanding, entry standards were set higher. Top farming and
slaughtering enterprises never slowed down their expansion. Take Shuanghui Group
for an example, it started local cooperation with medium-small scale
slaughtering houses in Zhengzhou, Huaiￂﾒan,
Chongqing and Nanchang to drive up its market share. All sorts of capitals were
noted entering breeding and slaughtering industry, trying their best to win the
market in the process of industrialization in China.
Regarding imp & exp, import
quantity of almost all kinds of meat went up obviously, which made the gloomy
domestic livestock product market condition even worse, meanwhile the export
meat quantity kept dropping. Trade deficit of meat was widened in China.
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In case of mild animal epidemic and
normal supplying capacity in the coming 2013, prediction of livestock product
market in China is not quite optimistic, the low breeding profit period might
be prolonged with vague consumption demand trend. In "China Livestock
Market Review & Outlook 2012-2013", deep analysis, such as
supply-demand, price change and trade condition regarding hog, meat poultry,
egg poultry, beef cattle and mutton sheep, will be made to try to figure out
the development direction of livestock product market in China for the related
enterprisesￂﾒ reference.
Latest
Report:
Special Research
Report on China Dairy Cow Farm: http://www.marketresearchreports.biz/analysis/93383
The occurrence of China's baby
formula scandal has triggered the need for scaled dairy farming across the
country. During the recent years, the State Council has kept on promulgating
new policies in support of the scaled farming of dairy cattle. In September
2007, the State Council issued a document titled Opinions of the State Council
on Promoting Sustained and Healthy Development of Dairy Industry (G.F.?2007?No.
31).
The document says: "Efforts
shall be stepped up to accelerate the scaled, intensive and standardized
development of the farming sector by means of developing scaled farming
neighborhoods (dairy farms) so as to gradually solve the problem of the dairy
cattle farming being small and scattered.
The agricultural authorities shall
speed up efforts in formulating standards for scaled farming of dairy cattle,
and the proportion of scaled dairy farming shall be increased remarkably by
2012." In November 2008, the Planning Outline for Regulating and
Revitalizing the Dairy Industry was issued, which called for promoting the
scaled and standardized dairy farming.
China Feed Market Review & Outlook 2011-2012: http://www.marketresearchreports.biz/analysis/93371
In 2012, several policies regarding
feed industry were published in China, which shall have profound influence on
China feed industry. Standards for feed and feed additive manufacturers are set
higher, medium-small scale enterprises that China's qualify would have to shut
down, while the large scale ones will celebrate their amazing development
opportunities.
With reference to market, large
scale feed enterprises went on steadily in 2012 as usual. The prices of feed
ingredients such as soybean meal, corn, fishmeal, etc. increased greatly in
2012 compared with 2011, while boom index of breeding industry went through
continuous decline. Taking the year of 2012 as a whole, hog breeding profit was
at low level, broiler breeding industry hardly saw any profit or even
experienced deficit, layer breeding industry’s scale shrunk due to production
capacity surplus. All of the above limited the end consumption ability of feed
products compared with 2011. For medium-small scale manufacturers, both
governmental policy and market condition made it harder for them to survive,
while the large scale manufacturers strengthened their competitiveness and risk
resistance capability by advantages in formulation technology, industry chain,
management, capital and raw material purchase, etc. Gap between medium-small
scale manufacturers and large scale manufacturers was widened.
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