Currently, there are considerable margins from hog breeding. As March 17th, breeding margins for purchased hog were 1024.67 CNY/head, a sharp rise of 1088.08 CNY/head or 1715.90% compared to -63.41 CNY/head in the corresponding period last year. Local governments have introduced generous subsidies to stimulate breeding enterprises to increase hog stocks, so that leading enterprises have been stabilizing their replenishment since the beginning of this year. Both hog and sow stocks continue the growth in March, and feed prices also move higher, bolstered by rising feedstock prices. Given this, downstream farmers are actively increasing feed stocks, so that nationwide feed production for hog extends the increment in March.
However, poultry feed are on the downtrend in March, for supplies of broiler chicks were disrupted after the Lunar New Year festival due to the coronavirus outbreak in China. Worse still, the virus is spreading across the world and hitting global catering businesses and food factories. In view of short culture-cycle of broilers, participants are not active making replenishment. Meanwhile, layer stocks are also declining this month. These together affect the demand for poultry feed in March.
On the aquaculture feed front, there is also a big seasonal change in demand. Since the start of March, farmers across the country have set to breed fish fries, which increases the demand for feed. The feed production of ruminant slightly increases as farmers are active replenishing ruminant stocks after the Lunar New Year.
Of all 1,135 Chinese feed enterprises surveyed by Cofeed, Mar feed production amounts to 8,721,710 tonnes, up 184,873 tonnes or 2.17% from 8,536,837 tonnes in February.
Specifically,
Hog feed: 3,529,148 tonnes, up 10,691 tonnes or 0.30% from 3,518,457 tonnes in February.
Poultry feed: 4,265,270 tonnes, down 130,215 tonnes or 2.96% from 4,395,485 tonnes in February.
Aquaculture feed: 632,796 tonnes, up 277,559 tonnes or 78.13% from 355,237 tonnes in February.
Ruminant feed: 285,896 tonnes, up 26,208 tonnes or 10.09% from 259,688 tonnes in February.
Other feed (specific feed): 8,600 tonnes, up 630 tonnes or 7.90% from 7,970 tonnes in February.
