China's feed industry has become an important industry promoting agricultural modernization -- May 2009

　　China's feed industry currently processes approximately 100 million tons of domestically produced corn and tens of millions of tons of other crops annually. It has become a crucial industry in promoting agricultural modernization, increasing farmers' income, and improving people's lives.

　　According to reports from the China Animal Husbandry and Feed Industry Exhibition, which opened on the 17th, China's total feed output reached 137 million tons in 2008, a year-on-year increase of 10.6%, consistently ranking second globally. The China Feed Industry Association predicts that based on the current production status of large and medium-sized domestic enterprises, this year's total feed production will remain stable or even surpass last year's level, with production growth rate reaching last year's level.

　　Li Ming, assistant president of COFCO Group, stated that the feed industry has become an indispensable part of China's national economy. It connects the planting industry, annually processing about 100 million tons of domestically produced corn and tens of millions of tons of soybean meal, cottonseed meal, rapeseed meal, and other feed materials; and it also connects the animal husbandry industry, promoting the growth of meat, egg, milk, and aquatic product output, playing an irreplaceable role in improving people's living standards. With China's continuous economic development, the feed industry has become a burgeoning sunrise industry, playing an increasingly important role in promoting national economic growth, promoting the development of the animal husbandry industry, and serving the "three rural areas" (agriculture, rural areas, and farmers).

　　Taking COFCO Group, China's largest grain and oil food enterprise, as an example, this major domestic feed raw material supplier provides more than 3 million tons of corn, 4 million tons of plant protein, and more than 1 million tons of corn processing by-products to the feed industry annually, effectively supporting the extension of the agricultural industry chain and the development of the feed industry.

　　The current global financial crisis, influenza epidemic, and decline in pork prices have brought considerable difficulties to China's feed enterprises. However, they have also significantly increased opportunities for enterprise integration, mergers, and restructuring. Feed industry enterprises will be able to develop towards the entire industrial chain, establishing a safe, high-quality, efficient, and environmentally friendly feed production system, forming advantageous group enterprises. This will avoid duplication, waste, and malicious competition, while enabling strong alliances of capital and resources, strengthening enterprise strength, and enhancing enterprise competitiveness.