Albany, NY -- (SBWIRE) -- 04/19/2013 -- China's feed industry witnessed the following significant features in 2012:

The industrial feed industry is in the process of rapid integration. The newly revised "Feed and Feed Additive Administration Regulations" was implemented in May 2012, which further raise the entry threshold for feed industry. Medium-and-large scale feed groups are expanding production capacities, and extending to upstream and downstream in the industry chain.

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The output of industrial feed increased rapidly, especially compound feed output improved significantly. The output of industrial feed in 2012 exceeded 200 million tons for the first time, up 12% year on year. Due to limited supply of good quality corn, and large fluctuations of raw materials price such as soy-meal and fishmeal, hog and poultry farms turned to use compound feed in 2012. The feature of compound feed instead of concentrate feed is more obvious in feed production and consumption structures.
Due to energy feed supply shortage, the price soared. Owing to limited supply of high-quality corn, corn import volume topped 5 million tons in 2012. Many feed and farming enterprises change feed formula, and consumption of wheat for feed hit a record high.
The degree of dependency on imported protein feed improves and the costs keep on increasing. A large fluctuation on soy meal price increases purchasing difficulties and operational risks for feed enterprises.
The demand for major additives is on the increase, but the prices are on the decrease. With improvements of formula technology, and growth of industrial feed output, the demand for major additives is on the increase, such as Lysine and Methionine. However, an increase in production capacities brings more serious competition, and the overall prices of major additives in 2012 are lower than 2011.

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This report systematically analyzes market performances of corn, soybean meal, rapeseed meal, cottonseed meal, DDGS, fish meal, meat and bone meal, lysine and DL-Methionine in 2012, including supply, demand, trade, etc, and also forecasts the trends of feed market performance in 2013.

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China Cattle Farming & Dairy Industry Analysis and Forecast Report 2012 - 2013: http://www.marketresearchreports.biz/analysis/166613

In 2012, China's dairy cattle farming and dairy industry mainly showed the following characteristics and changes:

The raw milk supply was still in shortage in 2012, and milk price stayed on high level. However, to compare with 2011, profits in dairy cattle farming declined significantly and even presented deficit because of big feed cost increase.
Poor margin have forced many small farmers to give up dairy cattle farming in 2012. Community farming is expected to transform into professional farming modes like large-scale farm or dairy cooperative; and the proportion of large-scale dairy cattle farming in China will further expand.
Large-scale dairy cattle farming have been developing rapidly in China. In 2012, the number of dairy farms with inventory of over 1,000 heads has exceeded 1,200, among which about 50 large dairy farms (including farms in plan, under construction and in operation) individually have inventory of over 3,000 heads, and over 10 super large dairy farms respectively own inventory of 10,000 heads.
Dairy cattle farming will expand demand for automatic equipments like in feeding and milking. Meanwhile, manure pollution will become the major factor to restrict development of the industry.
In 2012, alfalfa hay consumption showed growth and the import volume reached 0.45 million MT, accounting for over 60% of national consumption.

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