Abstract:With the rapid growth of the national economy, the continuous improvement of the market competition system and related laws, regulations and policies, the feed additives industry has developed by leaps and bounds. In recent years, China's feed additives production has maintained a growth trend, with the progress of science and technology, the types of feed additives are becoming more and more abundant, the role is becoming more and more obvious, and the animal husbandry industry plays a huge role in promoting. According to statistics, as of 2023, the national feed additive output will be 15.056 million tons, a year-on-year increase of 2.5%, and the CAGR from 2017 to 2023 will be 6.45%.
1. Definitions and Classification
Feed additives refer to substances added in the process of feed processing, production and use, which are used to strengthen the utilization of nutrients, improve animal production performance, promote animal growth and development, improve animal immunity, improve the quality of livestock and poultry products, and improve feed utilization efficiency. Feed additives are indispensable and important substances to achieve the whole process of animal nutrition, and are the core of compound feed, which together with energy feed and protein feed constitute the three important components of compound feed. As the core of the feed industry system, feed additives are an important symbol to measure the development level of the feed industry. Feed additives are specifically divided into functional feed additives, nutritional feed additives and pharmaceutical feed additives.
Second, industry policies
In recent years, with the increasing call for "food safety and antibiotic-free breeding", the "prohibition of antibiotic" feed has become the key development direction of the industry in the future. On July 10, 2019, the Ministry of Agriculture and Rural Affairs issued the "Announcement No. 194 of the Ministry of Agriculture and Rural Affairs of the People's Republic of China" for the withdrawal of medicated feed additives, planning to completely ban the production of feed containing antibiotic feed additives from July 1, 2020. In October 2022, 13 departments including the National Health Commission issued the National Action Plan for Curbing Microbial Resistance (2022-2025), proposing to strictly implement the withdrawal plan for feed additives with antimicrobial drugs for growth. In February 2024, the Ministry of Agriculture and Rural Affairs issued the "2024 Feed Quality and Safety Supervision Work Plan", focusing on the investigation and early warning of hidden dangers of prohibited substances, illegal and prohibited drugs, disinfection preservatives and colorants in compound feed, concentrated feed, additive premixed feed, feed additives and other products, and carry out investigation of illegal addition of unknown risk substances. Therefore, the development of "green, efficient and safe" antibiotic-free alternatives is the future development trend of the feed additives industry. Under the trend of feed "prohibition and resistance" and the large-scale and intensive breeding industry, it is more inclined to cooperate with enterprises with certain technical advantages, scale advantages, product quality advantages and brand advantages in the feed additives industry, so as to provide new development opportunities for such enterprises.
Third, the development process
The development of the feed additives industry began at the beginning of the 20th century, in order to improve the effect of animal feeding, people began to add some substances that can improve animal health and promote animal growth in the feed, which are collectively known as feed additives. Vitamins were first adopted as feed additives in the 20s of the last century; After the 60s, with the deepening of people's attention to food safety, the food health problems caused by the abuse of antibiotics in the breeding process have received extensive attention, and they are actively looking for relevant alternatives, which can solve the food health problems while ensuring the benefits of breeding. At the end of the 20th century, antibiotic feed additives began to be banned by many countries around the world, and at the same time, the biological feed additives industry with substitute antibody functions such as microecological preparations and feed enzyme preparations began to develop rapidly.
Fourth, industry barriers
1. Technical and talent barriers
The research and development of new feed additives such as microecological preparations and feed enzyme preparations need to comprehensively use professional knowledge in animal nutrition, bioengineering, genetic engineering, protein engineering, fermentation engineering and microbiology, involving microbial strain breeding technology, preparation technology, fermentation technology and enzyme engineering technology. At the same time, in recent years, the professional and refined development of the aquaculture industry has also put forward higher requirements for the sustainable development ability of enterprises in the industry, and it is necessary to have the ability to continue to develop new products that conform to the requirements of national policies and the development trend of the industry according to changes in breeding areas, climate change, changes in animal nutrition needs and changes in national policies, in order to gain a foothold and survive in the industry. Therefore, the feed additives industry has high technical and talent barriers.
2. Production process barriers
Feed additives such as microecological preparations and feed enzyme preparations need to involve the cultivation and fermentation of strains in the production process, and have higher and stricter requirements for the production process, and the subtle parameter changes and small operation errors in the production process, such as the source of strains, culture conditions, product determination, fermentation cycle, culture liquid concentration, feeding time, stirring speed, etc., may lead to problems such as miscellaneous bacterial contamination or the concentration of strains in the product, the content of enzymes is not up to standard, and affect the quality of products. The enrichment and improvement of the production process can only be completed through a large number of practical operations, and it is difficult to replicate in a short time, so the feed additives industry has high production process barriers.
3. Qualification barriers
The mainland implements a strict access system for the feed additives industry. According to the "Measures for the Administration of Feed and Feed Additives Production License", enterprises engaged in the production of feed additives need to apply to the Ministry of Agriculture and Rural Affairs and the provincial feed management department and obtain the production license of relevant feed additives in order to produce related products. The production license is valid for five years, and upon expiration, it needs to be re-evaluated by the relevant departments, and the validity period of the production license can be renewed only if the assessment is qualified.
4. Brand barriers
Customers have high requirements for the quality and stability of feed additives. As far as feed manufacturers are concerned, feed additives directly affect the quality of feed; For the breeding terminal, the quality of feed additives and feed directly affects its use effect, so users usually do not easily replace the brand products they recognize, and have a certain loyalty. Once the brand of the company's products is formed, it has become an important competitiveness of the enterprise, and it is difficult for the new entrants of feed additives to form brand influence and gain the trust of customers.
5. Scale and financial barriers
The investment cost of feed additives and feed product development and industrialization is high, and the investment cycle from R & D to the results is long, especially in the early stage of R & D, which requires a lot of time, capital, manpower and equipment, etc., and the scale and financial strength have become one of the limiting factors for entering the feed additives industry.
Fifth, the industrial chain
1. Analysis of the industry chain
The raw materials of the feed additives industry are mainly soybean meal, fishmeal and others, and the supply of products in the upstream industry is sufficient and the competition is fierce, but the price fluctuations of the main raw materials are easy to transmit to the feed additives production industry, which has an impact on the price fluctuations of feed additives. The feed additives business is mainly based on pig and poultry feed, and the dependence on the livestock and poultry breeding industry is great, and if there is a large-scale livestock and poultry disease, it will have an adverse impact on the business performance of the enterprise. The direct downstream industry of feed additives is the feed processing industry, and the end customer is the breeding industry. The breeding industry is cyclical, especially the cyclical fluctuations of pig prices are more obvious. Major epidemics and natural disasters are important constraints affecting the healthy development of the mainland aquaculture, feed and feed additives industry.
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