The demand of the feed market was influenced by the falling profits of the animal husbandry industry in the first half of the year. According to the data from the 180 key companies tracked, the total output of animal feed in China in the first half of 2015 was 87.3 million metric tons, decreasing 1.7 percent year on year. Among the total production, the output of pig feed was 36 million metric tons, decreasing 7.1 percent year on year. Layer feed output was 13.5 million metric tons, down 0.7 percent year on year, and broiler feed output was 23 million metric tons, down 1.05 percent year on year.
The increased profits came from the decreasing costs of feed ingredients. The average purchase price of corn was CNY2,400 (US$376.88) per ton and the purchase price of soybean meal was CNY2,600 (US$408.29) per ton, hitting the lowest level of the past five years. With many alternative products replacing corn in the feed industry, the costs of feed ingredients declined dramatically, enabling Chinese feed companies to profit.
According to the report, New Hope Group and Haid Group had the highest revenue among Chinese feed manufacturers in the first half of 2015.