Soybean meal soared 50% and feed industry lost money

Introduction: Mr Liu is the boss of a small feed factory in Shandong Province By the time of a telephone interview on October 30, his factory had stopped production for more than half a month He told reporters that the factory, which had a low profit, was no longer able to sustain it "Raw materials are so expensive, you can only lose money." NZF has a lot of bosses like Mr Liu According to Wang Suiyuan, Deputy Secretary General of China Feed Industry Association, 50% of small feed enterprises and more than 20% of medium-sized feed enterprises out of 13000 feed enterprises have stopped production The "culprit" of NZF killing these enterprises is the original humble soybean meal In just two months, soybean meal prices soared by 50% According to relevant statistics, the rise of soybean meal and other raw materials has brought more than 9 billion losses to the feed industry, while the profit of the feed industry in 2002 was only 6 billion "That is to say, the feed industry will lose money this year." Wang Suiyuan said On October 17, NZF reported the situation to the national development and Reform Commission It is reported that the relevant departments of the national development and Reform Commission have sent an investigation team to major soybean meal suppliers - major oil mills for investigation NZF soybean meal crazy NZF according to Mr Liu, at the end of August, the price of soybean meal remained at about 2200 yuan / ton, with stable price fluctuations No one thought it was the night before the crazy rise After NZF, the price of soybean meal began to rise continuously and steadily By the end of September, the price of soybean meal had been around 2500 yuan / ton, which made the industry begin to feel unbearable As NZF entered October, the hysterical rise of soybean meal price has been terrifying: in just half a month, the price of soybean meal stood at more than 3100 yuan / ton, and in two weeks, the price rose by more than 20%! In the past one and a half months, the rising price of soybean meal has driven the feed industry into a desperate situation According to Wang Min, general manager of raw material purchasing department of Shandong Liuhe group, with the current soybean meal price and the production of feed as the main business, "the group has no profit space." It is understood that Liuhe group, which uses 450000 tons of soybean meal annually, has become a "giant" in feed processing industry Even so for large enterprises, the living conditions of small and medium-sized enterprises can be imagined NZF soybean meal is the residue of soybean oil, which is rich in protein content It is the most important raw material for processing feed The total demand for soybean meal in the feed industry in the whole year is about 18 million tons According to Wang Suiyuan, "according to the capacity of various oil producers, this demand can be completely met." NZF, however, soybean meal prices rose without hesitation Wang Min said that the price of soybean meal reported by oil mills to feed manufacturers was determined by reference to the soybean meal futures prices of CBOT and Dalian Commodity Exchange, "we have no room for bargaining" NZF oil extractor? NZF oil producers attribute the root cause of the price increase of soybean meal to the atypical increase of the price of soybean, the raw material for oil extraction "Beans are too expensive," said Li Xuansheng, deputy general manager of Donghai grain and oil, the country's largest oil press NZF according to the spot and futures industry, from the end of August, the spot price of soybeans in the domestic market has risen from 2400 yuan / ton to more than 3200 yuan / ton, while the futures price is close to 3500 yuan / ton NZF but different voices are still there, and it's healthy NZF up to now, according to the mid-term researchers in Beijing, soybean oil, the main product of NZF, has made a huge increase, from 5800 yuan / ton to nearly 8000 yuan / ton, while soybean meal has skyrocketed at the same time, "conservatively, the profit of processing one ton of soybean by oil refiners is more than 600 yuan." Wang Min of NZF Liuhe group also believes that compared with the feed industry struggling on the life and death line, its upstream oil producers are extremely well off "This year's oil companies are definitely profiteering." NZF is also facing the rising price of raw materials, and the situation of oil extraction enterprises and feed enterprises is two-fold According to Wang Suiyuan, NZF's production capacity in the oil extraction industry has gradually gathered in Donghai grain and oil group, Donglin group, Huanghai grain and oil group and other super large enterprise groups According to insiders, Donghai grain and oil company alone produced 1.6 million tons of soybean meal in 2002, accounting for 10% of the national soybean meal production However, feed enterprises can not expand their scale rapidly due to market restrictions Wang Min pointed out that the customers of feed enterprises are breeding farmers, with more customers and less orders Generally, feed enterprises are not too large, with an annual output of about 20000 tons NZF insiders therefore believe that in the soybean meal market, a small number of giant oil producers face numerous and "small" feed enterprises, forming a pattern similar to "oligopoly", and it is self-evident who has the right to say the price NZF, Li Xuansheng, argued that "no company can control the market." NZF had no choice but to ask for "life" from the competent authorities Wang Suiyuan said that after listening to the report, relevant leaders of the national development and Reform Commission attached great importance to this matter and were studying relevant solutions NZF this newspaper from the oil producers confirmed that the investigation team led by the price department of the national development and Reform Commission has entered the major oil producers for investigation Li Xuansheng said that the national development and Reform Commission investigated the source of raw materials and whether the market demand could be guaranteed, but "the investigation team has gone back" Relevant personnel of the national development and Reform Commission did not disclose the contents and results of the investigation The industry insiders of NZF feed industry believe that the investigation effect of NDRC on oil producers is significant From the perspective of market performance, soybean meal prices have been fluctuating at 3000 yuan / ton since mid October NZF policy is to be changed, but many feed manufacturers and small oil producers are not satisfied with the investigation of NDRC Song Jun, where NZF is located with Mr Liu, runs a small oil extraction enterprise Compared with Mr Liu, he stopped work earlier, and the "huge profits" brought by the rising prices of soybean meal and soybean oil were not matched NZF "the investigation of the national development and Reform Commission does not cure the symptoms To solve the problem of soybean meal rising, we must reform the import policy of genetically modified soybean " "The current import policy ensures the monopoly position and the basis for huge oil extraction enterprises to make huge profits," Song said According to NZF, according to the relevant policies, before the signing of the order contract, the information about the origin, quantity, trader and port of import of genetically modified soybeans should be submitted to the Ministry of agriculture to apply for import license In fact, after obtaining the license, the initiative of import price is completely controlled by foreign manufacturers "It's not easy to get a license You can't just let it go when someone offers you a price." 1 The head of the soybean import enterprise said According to Song Jun, NZF's enterprise is too small to eat 50000 tons of imported soybeans, so raw materials have been purchased through import traders However, due to the state's strict monitoring system for genetically modified soybeans, starting in September, traders no longer act as their agents, and now they have to shut down According to customs statistics, up to now, China has imported 17.71 million tons of soybeans this year, an increase of nearly 70% over 2002 It is the huge purchase of our country that leads to the soybean price rising rapidly in the international market NZF and most of these soybeans ended up in the warehouses of large oil producers, "because only they were able to eat the whole ship of soybeans." Song said According to Wang Suiyuan's calculation, about 8 million tons of domestic soybeans are used for pressing This year, the imported soybeans are expected to exceed 20 million tons According to the ratio of 0.75, 21 million tons of soybean meal will be produced, which is fully capable of meeting the needs of feed enterprises Professor Hua Min of Fudan University, NZF, pointed out that oligopoly will inevitably produce prices that are conducive to producers Industry insiders believe that the genetically modified soybean policy has resulted in the concentration of soybeans in the hands of a small number of enterprises, which will inevitably cause feed manufacturers to have no ability to negotiate prices in the market, and all profits have been "squeezed" by oil producers NZF reporter's note: at the time of reporter's closing, Wang Suiyuan, Deputy Secretary General of China Feed Industry Association, got the latest news According to Guangxi Feed Association, the local corn price has risen from 1100 yuan / ton to 1600 yuan / ton in more than ten days, and feed enterprises have reached the brink of collapse According to NZF, corn is the most important ingredient in feed processing, with an annual demand of over 70 million tons and an increase of 500 yuan per ton Rough calculation will cause a cost increase of over 30 billion yuan, which is absolutely a devastating blow to feed industry NZF understands that the most important reason for the rise in corn prices is the rise in soybean meal prices "The need for alternative products has led to an irrational rise in these products." That's what a feed processor said NZF reporter learned from the market that the price of fish meal, rice, lysine and other feed materials all increased by more than 30%, while the price of feed was rigid Wang Min said that there was no way for feed to rise substantially because "the market did not recognize it and farmers did not buy it" NZF, according to Wang Min, the original chicken seedlings at 0.6-0.7 yuan have now dropped to 0.4 yuan, "because farmers don't want to raise chickens anymore, because feed is too expensive But we have no way " Once NZF starts to reduce production on a large scale, people's living standards will be affected first, and then the price fluctuation will be more terrifying NZF according to a friend in Hangzhou, within one month, pork has risen from 6.5 yuan / jin to 9.5 yuan / Jin, which was before pigs were slaughtered on a large scale If the price of raw materials such as soybean meal continues to be so high, we can only raise the feed price again At that time, farmers may have to kill pigs " Said a feed manufacturer in Guangdong "It's killing the goose that lays the egg," says NZF people of insight NZF