June 26, 2014
China''s surging meat demand drives animal feed output rebound
As China''s demand for meat increases and fish farms expand output, animal feed output in the country is poised to recover from the first contraction in 20 years, according to the agriculture ministry.
Production dropped last year and has shrunk 3% in the first half of 2014 after a bird flu outbreak and low pork prices curbed farming, Wang Xiaohong, a feed director at the ministry''s husbandry division, said in the remarks posted in the China FeedOnline website.
"The industry is regaining its footing after a disastrous first half," said Tommy Xiao, an analyst at Shanghai JC Intelligence Co., an agricultural researcher.
Hog prices in eastern Shandong province, the biggest meat producer in the country, have gained about 29% since April 30, while broiler poultry climbed 5%, Shanghai JC''s data show.
Aquaculture feed demand may expand by more than 30% in June from May as rising temperatures help fish and shrimp farming, according to Xiao. Poultry feed and hog fodder will gain 15% and 10% respectively.
Soybean crushing increased 2.1% to 1.6 million tonnes in the week ended June 20 from a week earlier, according to a report from UniRich Investment Management Ltd., a Beijing-based researcher.
Rising livestock-feed output in China, the biggest importer of soybeans, will boost the country''s demand of the oilseed, the main protein ingredient. China''s soybean imports may climb 4.3% to 72 million tonnes in the year starting October 1 from the current year, the U.S. Agriculture Department forecast this month.