Analysis of industrial policy for China¡¯s Feed Industry in 2004
Recently, the Feed Association of MOA held its ¡°2003 Work Summary Meeting¡± and ¡°2004 Sector Key Work¡±. In 2004, the Association will grasp firmly safety administration of feed production, feed product verification, HACCP management verification and other work.
BOABS analysis holds the view that due to the fierce fluctuation in feed sector in 2003, the feed production in 2004 will take developing and improving feed quality as the aim, feed industry will have fierce merging and recombination, the Association holds the view that the Hope Company, the Zheng Da Group and other feed companies ranking in the first 30 in large-scale feed group enterprises have a total feed output accounting for about 45% of total feed output, and the industrial feed output seemed to concentrate in the group companies. The reasons are as follows:
¢Ù Compound feed production scale is surplus. In 2003, the output could reach 160 million tons, but the operation rate was only about 23%. In 2004, the Association might restrict the putting into operation of small-scale feed machinery (the output of less than 5 tons feed per hour)
¢Ú Through survival of the fittest in market in 2003, small-scale feed enterprises will be culled, thus, we shall increase the feed production admission condition. Meanwhile, we shall support Hope Feed Company, Zheng Da Feed Group, Jilin De Da, and other feed enterprises ranking in the first 30, merge and recombine small-scale feed enterprises (currently more than 7,000) and implement industrial feed quality control measures.
¢Û The administration and adjustment of domestic feed additives have provided aims for feed quality control. Due to the fact that about 50% animal husbandry households in grain producing areas mainly buy premix, they add in soybean meal, corn raw material of produce industrial feed. The quality of feed additives is the major factor influencing the nutrition of animal products and major means to control drug residue in animal products.
¢Ü China will focus on policy support on small variety of nutrient feed additive production, such as lysine, methionine, and vitamin C, so as to increase the competitiveness of domestic producers, and support domestic lysine and other products so as to replace import products.
Source: Feed Fair, No. 1, 2004, p. 49


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