China has emerged as the world’s top feed producer, and its increasing production levels put it on track to become the dominant source of feed in years to come. Aidan Connolly, Vice President of Alltech, takes a look at the issues facing feed companies in China as they expand and modernize.
The largest feed producers in the country are growing and consolidating in efforts to increase efficiency and contend with rising costs, safety issues and environmental concerns. The number of feed producers actually declined significantly from 2005-10, from over 15,000 feed companies to fewer than 11,000, but overall production has increased as manufacturers consolidate and expand.
China’s government introduced nationwide quality-control guidelines in 2012, partially in response to a handful of food safety issues and partially to meet demand from consumers. Those regulations led to further consolidation in the industry, fueling growth among the country’s largest producers.
But there are still many issues to be solved, as Connolly finds. Feed enterprises will have to continue to modernize and increase their use of technology to become more efficient. Technology won’t just become more important during the manufacturing process, but will also play a greater role in measuring the effects of feed on animal nutrition. Environmental concerns are also becoming more pressing as consumers hold feed producers more accountable.
To read Connolly’s full report, click here.