Research Background
In 2008 residents in China reduced meat procurement and outside repast influenced by macro-economy, causing dramatically decreasing livestock products consumption and supply surplus appeared in hog breeding industry, even slaughtering sow in partial areas. And broiler and layer breeding houses are remaining unstable conditions. And famous producers are severely affected by Melamine Scandal which also influenced the whole chain.
The Government continuously strengthens breeding industry in policy level, including subsidy for breeding sow and insurance for raising hog in partial areas; support for cow farming; subsidy for breeder layer zones. However, the government takes no nationwide supportive measures on meat-orientated cattle and sheep breeding, although which kept a low inventory. The economic plans issued in the end of this year are aimed to accelerate animal epidemic prevention system and official veterinary system.
Private farmers are eliminated in current market operation model and large-scale breeding houses keep expanding. More breeding cooperation emerged in local regions. Famous feedstuff producers and slaughtering companies entered this industry with foreign investment, so it is expected that about 20 super integrating enterprises will appear in China in the coming 3-4 years.
People show pessimistic attitude to macro-economy in 2009. However, it is expected that foodstuff will be sufficiently supplied thanks to increasing grains yield and purchasing price, stabilizing the cost of feedstuff, which will actively ensure livestock product consumption and gaining profit among breeding houses.
This report analyzes the industry chain of hog, meat-type poultry, egg-type poultry, cattle and sheep, including breeding profit, slaughtering, processing, consumption, trade, etc. as to gain an integrated development of livestock industry in 2008. Meanwhile, competition among domestic enterprises and effects of international market are also our research target, and there is also a forecast for the development trend of the Chinese livestock industry in 2009.
This report is a joint product of the experts of the Livestock and Feed Department, these senior livestock and feed analysts also make advice for relevant departments and associations, and keep a beneficial relationship with major livestock enterprises, relevant industry enterprises, which provide precious information and data for this report, assuring the veracity, authority and forward looking. This is a rare report which shall be of great value for livestock investors, producers, material suppliers, equipment suppliers and research institutes both at home and abroad to understand the development trend of the livestock industry, to make decisions on the positioning of the enterprise and to formulate development strategies.