Abstract:Compound feed can meet all the nutrients required by animals, can be directly fed to animals, no need to add other monomer feed, at present, intensive breeding of laying hens, broilers, pigs and other livestock and poultry and fish, shrimp, eels and other aquatic animals, are directly fed with compound feed, therefore, compound feed in the mainland rapidly popularized use, production and sales continue to increase, in 2023, China's compound feed output will reach 298.885 million tons, accounting for 92.93% of the country's total feed output.
1. Definitions and Classification
Feed refers to the nutrients that can provide the nutrients required by animals, promote the healthy growth and production of animals, and can be fed safely and effectively under the rational use of the substance, according to different feed concentrations and component formulas, the feed can be divided into compound feed, concentrated feed and premixed feed, wherein, compound feed is the basis of modern breeding industry, can meet all the nutrients required by animals, mainly including protein, energy, minerals, trace elements, vitamins and other substances. According to the different feeding objects, compound feed can be divided into pig compound words, egg and poultry compound words, meat and poultry compound words, aquatic products compound words, ruminant compound words, pet compound words and other compound words.
Second, industry policies
1. Competent departments and regulatory systems
The Ministry of Agriculture and Rural Affairs of the People's Republic of China is the administrative department in charge of China's compound feed industry, which is responsible for the supervision and management of feed nationwide. The agricultural administrative department of the State Council is responsible for the supervision and management of feed throughout the country. The departments of the local people's governments at or above the county level responsible for feed management shall be responsible for the supervision and management of feed in their respective administrative areas.
The National Animal Husbandry Station (China Feed Industry Association) is a state-level technical support organization that undertakes the promotion of improved varieties and technologies of national animal husbandry (including feed, grass and dairy), the protection and utilization management of livestock, poultry and forage resources, the quality management and certification of animal husbandry, and the improvement of grassland and the prevention and control of biological disasters. The main responsibilities of the National Animal Husbandry Station include: responsible for the comprehensive business of feed; participate in the drafting of feed industry laws and regulations, departmental rules and development strategies, plans, plans and standards, and put forward relevant policy recommendations; guide the review of feed production licenses, participate in the supervision of feed quality and safety; participate in the organization, implementation and management of grain reform and feed projects, organize and promote the silage technology of high-quality forage such as whole corn, alfalfa, etc.; be responsible for the statistical work of the feed industry, and conduct research, judgment and early warning of the situation of the feed industry; The compilation of China Feed Industry Yearbook, etc.
2. Industry policy
In April 2023, the General Office of the Ministry of Agriculture and Rural Affairs issued the "Three-year Action Plan for Reducing and Replacing Feed Meal", pointing out that under the premise of ensuring that the production efficiency of livestock and poultry remains stable, Strive to reduce the proportion of soybean meal in feed by more than 0.5 percentage points per year, and reduce the proportion of soybean meal in feed from 14.5% in 2022 to less than 13% by 2025. In February 2024, the Ministry of Agriculture and Rural Affairs issued the "2024 Work Plan for Feed Quality and Safety Supervision", pointing out that it is necessary to strengthen the supervision of feed quality and safety, improve the quality and safety of livestock products, and promote the high-quality development of animal husbandry.
Third, the development process
The development of China's compound feed industry has gone through a number of stages, from the initial embryonic stage to today's large-scale, continuous improvement of the technical level of the modernization stage, providing strong support for the healthy development of China's animal husbandry, in the future, China's compound feed industry will face more challenges, such as green and sustainable development, reducing production costs, etc., the need for continuous innovation and upgrading to meet the needs of the market.
Fourth, industry barriers
1. Barriers to entry
China imposes industry access restrictions on the feed industry. The "Regulations on the Administration of Feed and Feed Additives" stipulates that the establishment of feed and feed additives production enterprises shall have plant, equipment, technology and storage facilities suitable for the production of feed and feed additives, full-time technical personnel and necessary product inspection facilities, and must be reviewed and approved by the National Feed Office of the Ministry of Agriculture or the Feed Office of the People's Government of provinces, autonomous regions and municipalities directly under the Central Government before going through the enterprise registration procedures. Newly developed feed must be submitted to the Ministry of Agriculture before the application for approval of new products, after the Ministry of Agriculture designated by the agency testing and feeding test qualified, by the National Feed Review Committee according to the results of testing and feeding test, the safety and effectiveness of the new product and its impact on the environment are reviewed;
2. Quality barriers
The quality of feed products is closely related to food safety, and for downstream pig breeding, aquaculture and other customers, the primary factor affecting their purchase is product quality. The core technology of the feed industry is feed formula technology and production process technology, and industry entrants must master the relevant technology and process flow, and accumulate rich management experience to ensure the quality of products.
3. Technology and R&D barriers
Technology is the guarantee of product quality, and industry entrants must master the relevant feed formulation technology and technological process. Feed processing has high requirements for dynamic R&D strength, rapid market development, and inconsistent regional demand, resulting in diversified demand. Enterprises with weak R&D strength, low product renewal rate, and low product market recognition are difficult to survive. Therefore, only enterprises that have obtained relatively deep technical accumulation in the industry have the foundation for survival.
4. Marketing barriers
The feed industry is highly competitive, and market entrants need to have strong market development and breeding supporting technical service strength, and have a professional and stable sales team and technical service team. Under the new market situation, the technical service team is required to be proficient in the characteristics of various feeds and the solutions to breeding problems. Only compound feed enterprises with a strong marketing network and a high level of marketing can meet the competitive needs of the new situation.
5. Brand barriers
Brand is one of the core competitiveness of an enterprise. Due to the large feed enterprises in the industry are more familiar with the business characteristics, processing equipment and business operation mode of the industry, after long-term business accumulation, distribution channels and supporting technical service systems are more mature, the brand influence is large, the market reputation is high, and the stable customer group with high loyalty to the brand has accumulated obvious advantages in position. Therefore, new market entrants must rely on cost-effective products and strong market penetration channels, as well as long-term continuous marketing, in order to be recognized and accepted by customers.
Fifth, the industrial chain
The upstream of the industrial chain of compound feed industry mainly includes corn, soybean meal, fishmeal, feed additives, feed additives and other industries, and the downstream is the breeding industry, including pig breeding, poultry breeding, aquaculture and other industries.
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