Today is 04/24/2024
Hog breeding became much more lucrative from late May. As of June 11th, breeding margins for purchased hog were 1217.93 CNY/head, a huge rise of 781.53 CNY/head or 179.09% compared to 436.40 CNY/head in the corresponding period last year. Local governments have introduced generous subsidies to this industry, so that leading enterprises have been stabilizing their replenishment since the beginning of this year. Merely, soybean meal prices continued a downtrend in May, with an accumulated decline of 200 CNY/tonne, which blunted the enthusiasm in purchases. In addition, the slaughtering rate of hog in May also rose, in addition to carryover feed stocks in March and April. Hence, hog feed production declined in May.
Layers stocks declined across the country due to low egg prices, which have also been at a loss since the Spring Festival. Some breeding farms began to eliminate old chickens to stop losses, and farmers are reluctant to make replenishment on a bearish market outlook. Moreover, the demand for broilers also remains weak, so that farmers are also cautious in replenishing broiler chicks. Hence, the demand for poultry feed is also subdued.
The demand for aquaculture feed is driven higher seasonally, so that the production continued rising in May. But the rise was smaller than the forecast due to a dismal aquaculture state in south China. In addition, there is a slight rise in production of ruminant feed.
Of all 1,135 Chinese feed enterprises surveyed by Cofeed, feed production was 9,356,588 tonnes in May, down 756,347 tonnes or 7.48% from 10,112,935 tonnes in April.
Specifically,
Hog feed: 3,690,265 tonnes, down 323,597 tonnes or 8.06% from 4,013,862 tonnes in April.
Poultry feed: 4,493,495 tonnes, down 588,083 tonnes or 11.57% from 5,081,578 tonnes in April.
Aquaculture feed: 912,557 tonnes, up 136,915 tonnes or 17.65% from 775,642 tonnes in April.
Ruminant feed: 248,969 tonnes, up 16,744 tonnes or 7.21% from 232,225 tonnes in April.
Other feed (specific feed): 11,302 tonnes, up 1,674 tonnes or 17.39% from 9,628 tonnes in April.
