Margins for hog breeding are still lucrative at present. As May 14th, breeding margins for purchased hog were 540.97 CNY/head, a sharp rise of 540.97 CNY/head or 1668.11% compared to -32.43 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 April, of which hog stocks see a consecutive four-month increment and sow stocks with an eight-month rise. Besides, 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 uptrend in April.

On poultry feed front, hatcheries have resumed normal work since March, and farmers are also making replenishment as March and April are usually the peak season for increasing layer stocks. Many layers have completed moulting after the Lunar New Year festival and now there are reducing spend chickens. These have together bolster a month-on-month rise in layer stocks this month. In addition, some farmers have begun to make replenishment of broilers since March, for supplies of chicks were disrupted after the Lunar New Year festival and now that the coronavirus has gradually been under control in China. Hence, April demand for poultry feed also sees an increase.

On the aquaculture feed front, there is also a big seasonal change in demand. Since the start of April, farmers across the country have gradually started fish breeding, which increases the demand for feed. But the feed production of ruminant declines affected by seasonal demand.

Of all 1,135 Chinese feed enterprises surveyed by Cofeed, April feed production amounts to 10,112,935 tonnes, up 1,391,225 tonnes or 15.95% from 8,721,710 tonnes in March.

Specifically,

Hog feed: 4,013,862 tonnes, up 484,714 tonnes or 13.73% from 3,529,148 tonnes in March.

Poultry feed: 5,081,578 tonnes, up 816,308 tonnes or 19.14% from 4,265,270 tonnes in March.

Aquaculture feed: 775,642 tonnes, up 142,846 tonnes or 22.57% from 632,796 tonnes in March.

Ruminant feed: 23,225 tonnes, down 53,671 tonnes or 18.77% from 285,896 tonnes in March.

Other feed (specific feed): 9,628 tonnes, up 1,028 tonnes or 11.95% from 8,600 tonnes in March.