This year, China's feed industry will face a big reshuffle

Introduction: Chen Yuxin, general manager of new page 1 hope group and chairman and President of Huaxi hope group, recently told reporters that China's feed industry will face a major reshuffle in 2004 JND Chen Yuxin said that in the past few years, grain prices were low, many feed production enterprises had low costs, and in recent years, with the adjustment of China's agricultural structure, the breeding industry had a rapid development, and the demand for feed was growing day by day, so the number of domestic feed enterprises was increasing, and some irregular small enterprises were everywhere Since 2003, China's grain price has increased dramatically, especially the main raw materials for feed production, such as corn and soybean meal, which has greatly reduced the profit space of enterprises Relevant statistical results show that the rise of raw materials such as soybean meal has brought losses of more than 9 billion yuan to the feed industry, while the profit of the whole feed industry in 2002 was only 6 billion yuan It is understood that of the 13000 or so feed enterprises in China, 50% of the small feed enterprises and more than 20% of the medium-sized feed enterprises have stopped production Some small and medium-sized enterprises that have not yet stopped production are also struggling to support On the other hand, because the profit of feed industry itself is not high, and the profit of farmers' breeding is relatively thin, the price of feed raw materials will rise this time, so it is impossible for feed enterprises to raise the product price accordingly In this case, only those enterprises of scale, grade and strength can stick to it, and only those that can't stick to it will be shut down and turn around According to JND Chen Yuxin, in the long run, the prospect of feed industry is relatively optimistic, because the more advanced and developed countries are, the greater the demand for meat food is, the more demand for commercial feed will be But the profit of the enterprise will depend on the scale effect of the enterprise more in the future If the enterprise fails to reach the scale, it will not only not make money, but also may lose money Therefore, next year will be a rare development opportunity for those enterprises of higher scale and higher grade However, he reminded that in the context of China's integration into the world economy, the advantages of marketing, management, development and technology are of course important, but more importantly, the market forecast should be made, otherwise these advantages will be offset According to him, at present hope group has put a lot of energy on market forecasting "Only in this way can companies keep up with the pace of the market and adapt to changes in the market," he said JND