Performance of China’s Listed Feed Companies Varied amid Economic Restructuring

Keyword: Feed and Feed additives, H7N9, ANIMAL HUSBANDRY
Publish time: 17th November, 2014      Source: CCM
Information collection and data processing:  CCM     For more information, please contact us

In 2013, the Chinese feed industry showed a tendency of weak growth. According to CCM's recent research, the total feed output in China in 2013 was 19.34 million tonnes, decreasing by 0.6% from 2012. Meanwhile, the total industrial output value and gross operating income both witnessed only slight growth, mainly due to slowing growth in the wider Chinese economy (which economists take as an economic restructuring) and the breakout of aquaculture disease, which seriously influenced the entire animal husbandry and feed production industries.

 

In March 2013, China was hit by the outbreak of H7N9 influenza, which lasted the rest of the year, seriously influencing the country's entire feed production. Sales volumes of feed and poultry products declined sharply, and thus some listed companies suffered sharp declines in profits. For example, Guangdong Haid Group Co., Ltd. saw a 24.76% year-on-year fall in profits in 2013.

 

Meanwhile, since rapeseed meal futures were listed at the end of 2012, the price of rapeseed meal has begun to fluctuate more widely. In 2013, its price reached USD545.87/t, up 40.80% year on year, and prices for freshwater fish feed also rose. Both these price rises harmed aquaculture businesses, cutting demand for feed products.

 

What's more, China's GDP growth continued to slow down in 2013, increasing only 7.7% compared with the previous year. In early December 2012, the Central Government of China released a regulation which required local government agencies to follow the principle of diligence and frugality. These two factors have resulted in a fall in the consumption of meat, and thus weakened the demand for feed products.

 

In recent years, M&A and restructuring in the feed industry have sped up significantly. Competitive advantages are allowing the best enterprises to show a continuous growth. The development of Chinese feed industry is expected to achieve the following goals in the next few years: the R&D of low nitrogen, phosphorus and other green feed products will be promoted; the use of minerals, trace elements and drug feed additives will be more specific; and energy consumption per unit of output value in the feed industry will continue its steady decline.

 

China market intelligence firm CCM has published a report providing a detailed analysis of 11 of China's leading listed feed companies. The report – Annual Report Analysis of Feed Listed Companies in China – analyzes exhaustively the 11 feed companies' current performance and future prospects, focusing on the following aspects:
-Revenue and net profit of the feed listed companies, 2009-2013;
-Main business structure of the feed listed companies by revenue, 2013;
-Revenue of the feed listed companies by region, 2012 and 2013;
-Revenue from the top 5 clients of the feed listed companies, 2012 and 2013; 
-Revenue and gross profit margin of feed business of the feed listed companies, 2009-2013;

For more information about CCM's report
Annual Report Analysis of Feed Listed Companies in China, please visit www.cnchemicals.com or contact us by calling +86-20-37616606 or emailing econtact@cnchemicals.com.

 

About CCM:

Owned and operated by Kcomber Inc., CCM is dedicated to market research in China, the Asia-Pacific Rim and the global market. With a staff of more than 150 dedicated, highly educated professionals, CCM offers Market Data, Trade Analysis, Reports, E-journals, Company Profiles, and customized consultancy services. CCM's clients include Shell, Coca-Cola, ExxonMobil, DuPont, Syngenta, Bayer, Monsanto, and Tate & Lyle.

 

For more information, please contact:

 

Alex He

Marketing Director, Kcomber

Tel: +86-20-37616606

Email: econtact@cnchemicals.com

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