The swine farming sector is still seeing historical high margins, albeit a slight decrease in August. On September 11^th, breeding margins for purchased pig was 1460.74 CNY/head, a month-on-month decline of 102.83 CNY/head but a year-on-year increase of 375.24 CNY/head or 34.57% from 1085.5 CNY/head. Large enterprises are active in expanding pig farming capacity under the drive of high profit margins, and small-and-medium-sized companies are also making expansions at various levels. August hog and sow inventories have been on the rise, of which sow stocks have seen an increase for twelve straight months. In addition, piglets also have higher demand for feed with the increase in weight. Hence, hog feed production extend its uptrend in August. But as farmers are still digesting July feed and some purchasers are waiting on the sidelines due to a decline in corn and soybean meal prices in August, so the rise in August feed production is smaller.

Poultry feed production sees a decline in August. The overall feed intake is decreasing as layers are not producing during the dog days of summer, the demand for broilers have not picked up yet and farmers are slow in purchasing in the wake of a decline in feedstock prices.

Aquaculture feed production continue but slow down its rise in August, bolstered by seasonal demand. The demand will fall in September with the coming of the autumn.

Of all 1135 feed enterprises in China surveyed by Cofeed, feed production is 10,854,399 tonnes in August, up 16,992 tonnes or 1.59% from 10,684,437 tonnes in the previous month.

Specifically,

Hog feed: 4,587,207 tonnes, up 173,014 tonnes or 3.92% from 4,414,193 tonnes in July.

Poultry feed: 4,620,173 tonnes, down 33,117 tonnes or 0.71% from 4,653,290 tonnes in July.

Aquaculture feed: 1,334,357 tonnes, up 61,835 tonnes or 4.86% from 1,272,522 tonnes in July.

Ruminant feed: 291,188 tonnes, down 34,002 tonnes or 10.46% from 325,190 tonnes in July.

Other feed (specific feed): 21,474 tonnes, up 9,374 tonnes or 77.47% from 12,100 tonnes in July.