The "three battles" of the feed industry in 2015

The past two years can be described as a turning point in the feed industry, which has experienced overcapacity in the aquaculture industry, the survival of the fittest and the ups and downs of raw material prices, and 2015 has become a key period for the transformation of the feed industry. While awakening the recovery of the industry, feed companies also have a number of tough battles to fight. Here, the feed editor of Nongbo sums up the three major battles of the feed industry in 2015:

The debate on the Transformation of the Internet

Internet genes have been integrated into various industries, especially the animal husbandry and feed industry in the past two years. With the acceleration of the integration and intensification of feed enterprises, the single and traditional marketing model has long been unable to keep up with the development of the industry. Embracing the Internet has become a major trend in the development of the feed industry. How to make a good combination of the Internet and the feed industry? The agricultural and animal husbandry enterprises that have to be mentioned here are Da Bei Nong. No matter from the early investment or late development, Dabei Nong has made good achievements in the transformation of the Internet. The recent increase of 2.2 billion yuan, the agricultural Internet, once again detonated the entire animal husbandry and feed industry, is enough to prove the determination of the Great Bei Nong to enter the Internet. On the road of Internet transformation, if the feed enterprise is too formal, it will ignore the fundamental purpose of the enterprise. If you just watch and wait for the opportunity, the market will not give too much time and opportunity. The editor of Nongbo Feed believes that only by using the thinking of the Internet to re-upgrade the traditional feed industry and make it present a "new normal" to serve the entire animal husbandry can we really embrace the Internet.

The dispute of Aquatic Feed Industry

Today, with the overcapacity of livestock and poultry breeding industry, the high-profit aquatic feed industry has become a must for many leading enterprises. Putting aside the aquatic feed giants Haida and Tongwei, agricultural and animal husbandry enterprises such as Da Bei Nong and New Hope, which are committed to the production of livestock and poultry feed, are also entering the aquatic feed industry on a large scale. In fact, the aquatic feed industry that relies on nature for a living also has higher risks behind its high profits. judging from the situation last year, aquaculture, even if it is not in a bleak state, can also be described as a downturn, why it can attract the favor of many enterprises?

Let's take a look at a set of figures: 43.05 million tons of domestic aquaculture in 2012. If calculated according to the bait coefficient of 1.3, the demand for aquatic feed is 55.97 million tons, while the actual output is only 1883, with a coverage rate of 31.4 percent. It is estimated that China's aquaculture volume will be 58 million tons in 2020. Assuming a coverage rate of 40%, 30.16 million tons of aquatic materials will be needed, and there is still 60% room for industry growth. It is enough to prove that the aquatic feed industry has great potential for development. In addition, the only two giants stationed in the aquatic feed industry are Tongwei and Haida, on the contrary, there are more livestock and poultry feed giants and fierce competition, so they will have a greater advantage to take the lead and take the lead in entering the aquatic feed industry.

The dispute of Feed material Industry

The essence of feed enterprises lies in the production of feed, which is inseparable from the supply of raw materials. In recent years, the price of bulk feed raw materials in China fluctuates violently, which is undoubtedly not a headache for the procurement of feed enterprises. In 2012, there was a lot of hype about the weather in the United States, which led to a sharp rise in soybean meal prices, then plummeted again after the release of the USDA report. In the early stage, a large number of high-priced soybean meal were purchased, which made the cost of feed production too high; in the later period, soybean meal plummeted, and customers demanded a price reduction of feed products, but the cost was too high at the same time, how to reduce the price? These problems make feed enterprises very tangled. In fact, each enterprise has its own solution to the problem of feed raw material supply. Some enterprises directly cooperate with the upstream grain and oil processing industry to achieve a win-win situation, while others use hedging and other transaction means to directly control costs in the procurement link. In the view of the feed editor of Nongbo, direct cooperation with the grain and oil processing industry is a good choice, which can not only reduce the intermediate links to improve efficiency and share risks, but also avoid problems caused by quality differences. there is also the most important point is to implement the quality and safety. The development of upstream raw materials in 2015 will be another development measure for feed enterprises.

In the context of the slowdown in national economic growth, the transformation of the feed industry is also imminent, and 2015 is destined to be a key year of transformation. In addition to the three major battles of Internet transformation, aquatic feed industry and feed raw material industry mentioned above, talents and services will also become the battlefield of feed enterprises' competition.