Hog prices in China still stay at thigh levels, which brings generous breeding margins, so that large plants are actively expand their scales, and small and medium-sized enterprises have also made expansion at various extents. Hog and sow stocks thus continue rallying month on month. December hog stocks total 14,123,970 heads in 500 breeding plants, a month-on-month increase of 315,885 heads or 2.29% from 1,3808,085 heads and a year-over-year increase of 45.11%, data from Cofeed showed.

As the rigid demand for hog feed thus keeps growing and due to a sustained rally in feedstock prices in December, hog farmers are keen on stocking up feed, leading to an increase in December hog feed demand.

But poultry farmers are less active this year due to low egg prices and a sharp increase in breeding cost, and they have eliminated huge stocks in November and December, so layer stocks continue declining and broiler stocks also reduce in December. Poultry feed demand is affected and the production thus continues a downtrend in December.

December aquaculture feed production posts a sharp decline month on month, as aquaculture turns slack in winter. And the production will still continue the downtrend in January.

Of all 1135 feed enterprises in China surveyed by Cofeed, feed production is 11,024,427 tonnes in December, down 11,061 tonnes or 0.10% from 11,035,488 tonnes in the previous month but up 18.71% from 9,287,053 tonnes a year earlier.

Specifically,

Hog feed: 5,852,933 tonnes, up 358,053 tonnes or 6.52% from 5,494,880 tonnes in Nov and up 55.71% from 3,758,952 tonnes a year earlier;

Poultry feed: 4,272,605 tonnes, down 105,643 tonnes or 2.41% from 4,378,248 tonnes in Nov and down 9.9% from 4,741,852 tonnes a year earlier;

Aquaculture feed: 516,476 tonnes, down 268,525 tonnes or 34.21% from 785,001 tonnes in Nov and up 0.87% from 512,028 tonnes a year earlier;

Ruminant feed: 375,519 tonnes, up 8,969 tonnes or 2.45% from 366,550 tonnes in Nov and up 41.4% from 265,579 tonnes a year earlier;

Other feed (specific feed): 6,894 tonnes, down 3,915 tonnes or 36.22% from 10,809 tonnes in Nov and down 20.23% from 8,642 tonnes a year earlier.