Domestic breeding enterprises are making feed replenishment at a brisker pace with concerns that measures to contain the COVID-19 could impact shipments during the Chinese Lunar New Year and as feedstock corn prices keep staying high; feed production thus maintains growth momentum during January.

Hog feed production posts a year-over-year growth of 80.21%. This is due to a 49.92% increment in January hog stocks and robust feed demand ahead of the festival. And another important reason is that holidays for the Lunar New Year fell in the second half of January last year, which led to  widespread downtime.

Poultry feed production slightly increases by 1.88% from a year earlier. With a sharp growth in breeding cost, layers breeding have been at loss this year so that farmers are not confident about the market outlook and layers stocks also keep reducing. At the same time, broiler stocks are also decreasing.

Aquatic feed continues falling month on month due to slack demand seasonally, but also posts an uptrend year on year due to the festival.

Of all 1135 feed enterprises in China surveyed by Cofeed, feed production is 11,669,546 tonnes in January, up 645,119 tonnes or 5.85% from 11,024,427 tonnes in the previous month and up 35.99% from 8,581,431 tonnes a year earlier.

Specifically,

Hog feed: 6,326,128 tonnes, up 473,195 tonnes or 8.08% from 5,852,933 tonnes in Dec and up 80.21% from 3,510,499 tonnes a year earlier;

Poultry feed: 4,499,304 tonnes, up 226,699 tonnes or 5.31% from 4,272,605 tonnes in Dec and up 1.88% from 4,416,140 tonnes a year earlier;

Aquatic feed: 431,164 tonnes, down 85,312 tonnes or 16.52% from 516,476 tonnes in Dec and up 10.3% from 390,905 tonnes a year earlier;

Ruminant feed: 406,450 tonnes, up 30,931 tonnes or 8.24% from 375,519 tonnes in Dec and up 59.03% from 255,585 tonnes a year earlier;

Other feed (specific feed): 6,500 tonnes, down 394 tonnes or 5.72% from 6,894 tonnes in Dec and down 21.71% from 8,302 tonnes a year earlier.