China’s feed industry: Developing trends

August 23rd, 2020

by Weiguo Wang, Chairman, Feed Branch of the Chinese Cereals and Oil Association, China

China’s feed production in 2019

China’s feed industry began to grow significantly in 1978, which was also the first year of reform in China, resulting in China being the global leader in feed production for the past decade. The rapid development of Chinese feed industry makes a great contribution to the development of animal feeding industry and rich supply of meat, dairy and eggs available to Chinese citizens.

According to annual statistical data by the Chinese Feed Industry Association, in 2019, the total industrial feed production of China reached 228.854 million tonnes (mt). This was a 3.7 percent reduction when compared to 2018, primarily a result of Africa Swine Fever (ASF). In 2019, formulated feed, concentrated feed and additive premix production reached 210,138mt, 12,419mt and 5426 million tonnes respectively, which were three percent, 12.4 percent and 10.6 percent reductions respectively compared to 2018.

The feed production volumes by species were as follows: swine feed 76,632mt, layered feed 31,166mt, poultry feed 84,648mt, ruminant feed 1109mt, pet food 0.871mt, aqua feed 22,029mt and other feed 2419mt. China remained the top producer of swine feed and aqua feed in the world in 2019.

Total output value

The total output value of the feed industry in China in 2019 was 80,881 billion yuan, a nine percent reduction when compared to 2018. Feed additive product value reached 83.93 billion yuan in 2019.

Feed additive production in 2019

The total output of feed additives in China reached 11,992mt, an increase of 8.2 percent when compared to 2018. Amino acid, vitamin and trace mineral additives production reached 330, 127 and 590mt respectively, experiencing 10.5 percent, 14.7 percent and 4.1 percent year-on-year growth. Enzyme and directly fed microbial preparation products witnessed an increase in sales by 16.6 and 19.3 percent respectively, compared to the previous year.

The intensification of production

In 2019, 621 feed mills with a production capacity of over 100,000 tonnes were functioning in China, 35 less feed mills running than the previous year. Their total feed production reached 106.597mt, accounting for 46.6 percent of the total Chinese feed production. A total of seven feed mills produced in excess of 500, 000mt of produce and the single largest feed mill produced 1107mt of feed in 2019.

Top feed production provinces

Nine provinces in China surpassed 10 million tonnes of annual feed production in 2019, including Shandong, Guangdong, Guangxi, Liaoning, Jiangsu, Hebei, Hubei, Sichuan and Hunan. The feed production of Shandong province was top of the list, reaching an impressive 37,789mt. Guangdong province ranked the top second with feed production exceeding 29,238mt.

Technological trends within the Chinese feed industry

In order to ensure the sustainable development of feed and to continue to supply quality, safe and efficient feed products to customers, the Chinese feed industry will continue to focus on the following key technological developments:

  1. AGP-free feed technologies
    Antibiotic growth promoters (AGPs) will be officially banned from July 1st, 2020 in China. This will bring a great challenge to many feed mills and farms. Although some AGP-replacing technologies have achieved success in China, it is still a difficult task to obtain both cost-effective and comprehensive solutions that provide everything one would need for their farm.
  2. Protein source development and utilisation technologies
    As well as being the top feed producer worldwide, China is also the largest soybean meal consumer for compound feed production. In 2019, China imported more than 80mt of soybeans. It is estimated that China will require more protein-rich materials for feed production in the future to keep up with demand. Therefore, increasing native soybean production, developing new and quality protein sources and innovative technologies to enhance feed protein utilisation will be a very important developing trend within the country.
  3. Novel feed processing technologies
    Novel feed processing technology trends will mainly focused on the new physical processing technologies and novel bio-processing technologies. The first includes new cleaning, special grinding, thermal conditioning, extruding and drying technologies etc, which can be improved through improved use of energy efficient resources. The second refers to specific fermentation technologies for use with different raw materials and feed products, which can reduce anti-nutritional complications, pre-digest the materials, improve the nutritional profile and flavors, produce some functional components etc.
  4. New advanced feed machinery technologies
    Technological innovations for feed processing machinery are very important to the production efficiency, production cost, safety and quality of feed mills. Feed machinery technology will be analysed and improved based upon the following factors: higher energy efficiency of machinery, safer machinery technologies, intelligent control technologies of feed processing machines and whole production lines.
  5. Rapid quality detecting technologies
    Quick testing technologies for raw materials, feed additives, products in progress and finished products are very important for feed quality control and decision making. NIR and other new nondestructive testing technologies will play a more important role in the feed industry in the future.

Cubes: An interesting niche product

by Amandus Kahl GmbH, Germany

August 22nd, 2020 – The market for petfood and horse feed has grown strongly in recent years and continues to rise. In this market segment, high margins can be achieved compared to fattening feed, which consists mainly of the same components. Petfood is, therefore, particularly attractive for feed manufacturers.

The German machine manufacturer Amandus Kahl produces pelleting presses with flat dies with different bores. These different bores ensure the production of large and small pellets in various shapes. Larger pellets for cattle, horses and goats are called “cubes” – a reference to their shape. With over 70 years of experience, Amandus Kahl is an expert in pellet production. Thanks to the horizontally arranged die, Kahl machines can produce a wide range of different pellet diameters and densities.

Facts about cubes and pellets from Amandus Kahl

Apart from the usual cylindrical feed pellets, cubes or pellets with other special sections are in high demand. On the one hand, such pellets facilitate feeding (no rolling), on the other hand, a supplier can thus visually stand out from his competitors. However, the production of these specially shaped pellets is a challenge. In particular, the production of the necessary dies is not possible with any type of machine.

The Kahl flat die pelleting press is particularly suitable for the production of cubes. The disk-shaped flat dies can be provided easily with the special hole cross-sections. As a result, the costs of the die are significantly reduced.

Over the years, Amandus Kahl has developed a cost-effective method for producing square holes. With the Kahl method, square holes can be drilled as simply as round holes. By means of a special contour, the pellets also obtain an additional recognition effect.

Our specialists in the manufacturing department have accumulated countless years of experience in the production of different contours, such as “flower” or “clover”. Wear is reduced by using so-called sandwich dies: Only the “lower plate” is provided with the specially shaped holes. An additional upper plate protects the lower plate against wear and can be easily replaced if necessary.

As the die is not moved in the machine, even very long pellets (of up to 10cm) can be produced, which are not flung away prematurely. Thus, very large pellets are produced, for example as a reward feed for horses also referred to as “treats”.

With the Kahl press, also coarse formulae with a high fibre content can be processed due to the flat die principle. Thus, the pellets have a high nutritional value. The Kahl press also allows quick die change. For the feed producer, this results in a high flexibility in the production of different shapes.

Satake announces Excellent Employee Award

August 21st, 2020 – Satake Corporation has announced recipients for its first global Excellent Employee Award. Winners are Joe Escamilla of Satake USA, Inc for the Grand Prize, Michael Stephen Wain of Satake Europe Ltd and Nitin Gadekar of Satake Australia Pty Ltd for the First Place.

“Winners have shown extraordinary effort to further advance our technology and support our valuable customers, thus contributing to gaining customers’ trust and confidence towards our group. Our 124-year history consists of continuous effort in developing innovative technology and solutions for our customers. It is employees like these who encourage and motivate the whole group to become one team to further continue building the history” says Kazuyuki Kihara, Vice Chairperson of the Satake Group.

The Grand Prize recipient, Joe Escamilla comments, “I would like to thank the entire Satake group for recognising the efforts taken in devoting myself to our company’s goals. Receiving the award is an absolute honour and could not be achieved without the guidance of my superiors and all my fellow colleagues. I’ve learned so much throughout my career at Satake and look forward to a bright future within Satake for years to come. I will continue to focus on Satake’s goals and hopefully make a positive impact within and outside of our company”.

The Satake Excellent Employee Award is established in 2019 and awarded annually to its global employees with outstanding performance and contribution. The winners are chosen by the management team of all global group companies and announced normally in the spring. The publication of the 2019 award was delayed due to the COVID-19 situation.

Warm up for the 3rd Agrifood International Congress with the Agrifood Virtual Meeting

August 20th, 2020 – Next year, Agrifood International Congress will return to Tarragona 6-7th May 2021 to celebrate its third edition. The organiser will use the lessons learned this year to continue improving and preparing themselves for the new challenges of the sector.

Your safety the key priority

While the global pandemic continues to affect our daily lives the Port of Tarragona will launch a free bilingual webinar (Spanish-English) with a comprehensive panel of experts linked to the sector.

The Agrifood Virtual Meeting will take place virtually on 30th September 2020 at 3:30 p.m. (CEST) and will maintain the event’s international reach, acting as an opportunity to reconnect all relevant actors, strengthen trade relations and exchange knowledge and information on all technical aspects that affect the agri-food sector.

During two and a half hour session presenters will discuss the needs of the sector, opportunities for added value and provide the chance to prepare for the future and assess the new challenges that the COVID-19 pandemic brings to the agri-food value chain.

For more information and to register visit the Agrifood Virtual Meeting website, HERE.

Bastak to host online training for their ABSOGRAPH 500 Instruments

August 13th, 2020 – On the 14th August 2020 at 10:00am (GMT+3) Bastak are hosting a few online training session for all those who are interested.

The presentation will discuss flour, dough, and bread quality with the water absorption principle, as well as rheological behaviours.

Register on the Bastak website, HERE.

Register now for Alapala’s pasta production and processing technologies webinar

August 13th, 2020 – On the 27th August 2020 at 15:00 (GMT+3) Alapala will be hosting a free webinar which will provide a short insight of pasta processing technologies, and how to maintain a good quality from the grain to the final product.

The webinar sessions will take 45 minutes, including an open discussion at the end of each session for Q&A, experience sharing, and suggestions. Presenters include Milan Shah, Technical Director, Alapala, and Enrico Mola, Co-Founder and CEO, Perantani.

Milan Shah
Technical Director, Alapala
Milan Shah was born in Kenya and is currently residing in Turkey. He graduated in mechanical engineering from Bristol and has over 20 years’ experience in the milling sector. He has served Alapala for over 10 years in various positions and is currently serving as the Technical Director. Among his various responsibilities engineering, research and development are some of them.

Enrico Mola
Co-Founder and CEO, Perantani
Mr Enrico Mola is a food lover by education (bachelor of sc. in Food Technology, and Ph.D in Food Science), by passion and by experience, with more than 22 years in this domain. He worked across all the manufacturing/product related functions; operation, engineering, R&D, and quality. His main interests are developing new technologies, new formulations, and solutions in pasta industry: ‘I love to share my passion with the team and transfer the same to all stakeholders. Food and making food is part of my DNA, is my joy of live is a way to communicate, basically is WHO I AM.’

To register visit the Alapala website, HERE.

Lebanon to receive 50,000 tonnes of flour from the World Food Programme following the port explosion

August 12th, 2020 – A recent United Nations report has stated that the World Food Programme (WFP) is set to send 50,000 tonnes of wheat flour to Lebanon after last week’s blast at Beirut’s port destroyed its only silo with all the private stocks held there.

The U.N. Office for the Coordination of Humanitarian Affairs (OCHA) report said the flour would be sent ‘to stabilise the national supply and ensure there is no food shortage in the country’.

A Reuters report on Friday said Lebanon’s government held no strategic stockpile of grain before the explosion and all privately held stocks at the country’s only grain silo were destroyed.

Current flour reserves in Lebanon were estimated to cover market needs for six weeks.

‘An initial shipment of 17,500 tonnes is due to arrive in Beirut within the coming 10 days to supply bakeries for one month,’ the report said.

‘Lebanon consumes between 35,000 to 40,000 tonnes of wheat a month. With no large grain silos to store wheat in, sending the shipments as flour is more efficient,’ said Hesham Hassanein, regional grain consultant based in Cairo. ‘Flour comes in bags and is ready to distribute to be baked to bread versus wheat that needs to be milled.’

According to the U.N. report, the damaged port is not able to be repaired for at least a month.

‘A temporary bulk receiving facility is needed for grain imports to ensure adequate national stocks,’ the U.N. report said.

The French millers’ association have also said they were shipping 500 tonnes of wheat flour to Lebanon as a donation from their stocks.

A first consignment of 250 tonnes left the southern French port of Toulon on Sunday aboard a navy vessel, and the rest of the flour is due to be shipped from France on Tuesday, the association said in a statement.

France’s wheat growers association, meanwhile, is in talks with grain companies to assemble 25,000 tonnes of wheat to send as aid to Lebanon, its president, Eric Thirouin, said.

Ocrim’s New Trends and Technologies webinar postponed

August 11th, 2020 – Ocrim have recently announced that their “New Trends & Technologies: Modular Mill Concept” webinar has been postponed to the following days:

Tuesday, August 25th, 2020 at 10:00am (GMT +2:00) in English, register, HERE.
Wednesday, August 26th, 2020 at 02:00pm (GMT +2:00) in English, register, HERE.
Thursday, August 27th, 2020 at 11:00am (GMT +2:00) in Italian, register, HERE.
Thursday, August 27th, 2020 at 05:00pm (GMT +2:00) in Italian, register, HERE.

Those who have already signed up will receive an e-mail with the modified date. Ocrim apologises for the inconvenience.

Marco Galli, Ocrim Chief Technologist, will explain concretely what it is and the benefits that derive from this new technology. An exceptional guest accompanied him: Anna Buffa, the Food Entertainer and author of the Fornelli a Spillo blog that will introduce and moderate each webinar.

Visit the Ocrim website, HERE.

Moldovan government supports farmers with compensation following agricultural losses

August 10th, 2020 – Moldovan cabinet members have recently approved a regulation detailing how to provide compensation to reduce the consequences of natural disasters in the 2020 Moldova harvest.

In accordance with the decision of the Council of Ministers, through the Ministry of Agriculture, Regional Development and Environment, the Agency for Intervention and Payment of Agriculture (AIPA), will transfer 100 million leu (approximately $6 million USD).

Despite the significant COVID-19 epidemic and economic crisis, the government will allocate around 300 million leu ($18.3 million USD) to farmers to partially compensate for the damage caused by natural disasters. Of this amount, 100 million leu (6.1 million USD) will be allocated from the Agricultural Subsidy Fund and 200 million leu ($12.2 million USD) from the government’s Intervention Fund.

The cabinet will give 1,080 leu ($ 66.00 USD) per hectare replanted after it was planted last autumn. Compensation was 1,000 leu ($61.00 USD) per hectare of wheat cultivation and was kept at over 60 percent.

The regulation has been prepared in order to partially compensate for the costs incurred in the cultivation and maintenance of the first group of grains affected by drought. Compensation will be provided through the AIPA to farmers whose crops have been damaged by more than 60 percent.

Hamlet Protein strengthens NCA distribution relationships

Image credit: Mike Mozart on Flickr
(CC BY 2.0)

June 26h, 2020: Hamlet Protein, market leader in specialty proteins for young animal nutrition, announced the renewal of existing distribution partnerships and the start of new ones in Canada, Mexico and Central America. Based in Findlay, Ohio, the American branch of multinational Hamlet Protein has been steadily increasing its production capacity, technical and commercial resources. The company aims to increase its leading position in swine nutrition and has made a successful entrance in the poultry market.

The NCA region (North and Central America) combines some of the world’s top feed producing countries, with 215 MMt produced in the US, 37 MMt in Mexico and 30 MMt in Canada. Hamlet Protein increased the production capacity in Findlay, Ohio with the completion of a new production line earlier this year, and is targeting growth across the region.

Canada has long been a target market for Hamlet Protein. It renewed its already successful partnership with Jefo Canada, with the aim to increase market share in the monogastrics segment.

To be closer to customers in the Spanish speaking geographies in the NCA region, Hamlet Protein established a distribution relationship with Jefo Mexico and partnered with Profil in Central America. Distribution agreements were signed for Profil’s group companies in El Salvador (Servicios Tecnicos Avicolas); Honduras (Profilaxis) and Guatemala (Profilaxis).

Grady Fain, Regional Director NCA with Hamlet Protein commented, ‘We are very pleased to announce the extension of existing relationships and the start of new ones. Our distribution partners have deep knowledge of the local markets. Coupled with our first in class technical support, we feel confident that together we can achieve our ambitious growth agenda going forward.’

Hamlet Protein produces soy-based protein ingredients for young pig, poultry and cattle feed at two production plants in Denmark and the US. Hamlet Protein services customers around the world through a network of own sales offices and distributors.

For more information visit the Hamlet Protein website, HERE.