July hog breeding margins still stay at a historical high in China. On August 11^th, breeding margins for purchased pig was 1563.57 CNY/head, an increase of 665.49 CNY or 74.10% from 898.08 CNY/head a year earlier. Leading plants in this industry are driven to enlarge their scales and mid-and-small enterprises have also made various expansions. July hog and swine inventories have been on the rise, of which sow stocks have seen an increase for eleven straight months. Piglets which were replenished in previous stages also have increasing demand for feed now. And in July, soybean meal prices surge by 9.37% and corn by 6.61%. The rise in feedstock prices have also pushed farmers to make replenishment in advance, which bolsters an increase in July pig feed production.

July poultry feed production rallies. Farmers become more confident and active on the back of a sharp rise in July egg prices, and spent chicken prices have climbed as farmers are stalling the pace of elimination. Owing to the high cost of spent chickens and dismal sales of dressed chickens, slaughter houses have also shut down to reduce the loss. The elimination of layers have largely decreased in July, while layers replenished in Feb-Mar have begun to lay eggs. Meanwhile, farmers are bolstered to purchase feed by a sharp rise in feedstock.

July aquaculture feed production extends the uptrend and expand the increase, bolstered by seasonal demand. The production and sales of ruminant feed also rise in the wake of a rise in feedstock and feed prices.

Of all 1135 feed enterprises in China surveyed by Cofeed, feed production is 10,684,437 tonnes in July, up 933,908 tonnes or 9.58% from 9,750,529 tonnes in the previous month.

Specifically,

Hog feed: 4,414,193 tonnes, up 427,945 tonnes or 10.74% from 3,986,248 tonnes in June.

Poultry feed: 4,653,290 tonnes, up 290,316 tonnes or 6.65% from 4,362,974 tonnes in June.

Aquaculture feed: 1,272,522 tonnes, up 164,286 tonnes or 14.82% from 1,108,236 tonnes in June.

Ruminant feed: 325,190 tonnes, up 44,219 tonnes or 15.74% from 280,971 tonnes in June.

Other feed (specific feed): 19,242 tonnes, up 7,142 tonnes or 59.02% from 12,100 tonnes in June.