It is becoming more and more difficult for feed companies to win now, and production capacity is definitely not the most important, because if you want to expand, you can get production capacity at a low cost, which is more cost-effective than building your own, and it is a light asset. So, what are the key points for feed companies to grasp now and in the next 10 years?

Since the beginning of September, the price of corn in North China has risen sharply, and the rapid price increase of corn purchases by deep-processing companies is staggering. The highest price adjustment for a single-day enterprise in Shandong is 90 yuan / ton. Up to now, taking Shandong Weifang Changle Shengtai Pharmaceutical Co. as an example, the price of the plant's purchase of corn in North China on September 3 was 1,700 yuan / ton, and the purchase price on September 9 was 1,880 yuan / ton, and the price rose to 180 yuan within 5 days. /Ton. The purchase prices of other manufacturers have also risen, ranging from 30-130 yuan / ton.

Recently, the "Thirteenth Five-Year Plan for Development of Modern Animal Husbandry in Dongying City" (hereinafter referred to as "Planning") was approved by the municipal government and officially announced for implementation. The "Planning" shows that by 2020, the city's livestock industry will strive to reach more than 13.5 billion yuan, and the total output of meat, egg, and milk will reach 1.135 million tons. The high-efficiency ecological animal husbandry industry system with obvious regional characteristics of products has established an important production and processing base of efficient ecological animal products in the whole province and even the whole country. The dairy industry should build a batch of high-yield farms with a yield of more than 10 tons per cow.

In July 2017, China's soybean imports reached a record high of 10.08 million tons. In the first 7 months, the cumulative import of soybeans was 54.89 million tons, an increase of 19% year-on-year. It is expected that soybean imports in 2016/17 will exceed 91 million tons.

2017 is the second year of corn marketization. In the context of corn destocking, China has implemented reforms to adjust the corn planting structure on the supply side. In addition to the decline in imports of substitute agricultural products on the consumer side, national policies have further liberalized corn deep processing Approval authority, for example, on April 11, 2017, the General Office of the National Development and Reform Commission issued the “Abolition of“ Notice on Matters Related to Corn Deep Processing Management Project ”” (Fagaiban Industry [2017] No. 627), 2017 Starting from 28th, China's raw sugar processing, corn deep processing, fuel ethanol production and other fields will be lifted.

CFT August 8 domestic corn prices slightly reduced