According to recent agricultural news, by December 2014, 7,061 enterprises had achieved feed production license, decline by 3000 from 2013.
 
From the below figure we can see that in 2010-2012, the number of feed processing enterprises had not obvious change for three consecutive years. In 2013, small and middle feed enterprises gradually stay out of market, while in 2014 the quantity of feed enterprises that get production license declined largely with about 30% falling down range.
Chinese feed enterprises dropped off largely in 2014, BOABC thinks the reasons are as followings:
 
First, heavy-handed policy: since 1 May in 2012, MOA published a series of policies, and the one aim was that firstly, largely improving barriers to entry; secondly, standardizing the production and marketing; last but not the least, eliminating unqualified enterprises.
 
By regions, in Guangdong and Shandong where production scale is higher, thus feed enterprises decline slightly. However, in Hebei and Heilongjiang the condition is very different. Take Heilongjiang for example, in 2014 its feed enterprise declines to 139 from 600, with about 75% elimination rate.
 
Second, market elimination: in 2014 Chinese livestock, poultry and aquatic breeding continue the downward tendency of weakness. Therefore, most of feed enterprises add slowly, and then some small and middle enterprises gradually stay out of the market. 












From “China Livestock and Feed Market Weekly Report”