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The New Feed Regulations Aggravate The Plight Of Small And Medium - Sized Feeding Enterprises.
Mar 03, 2018

"Today we are faced with is not efficiency problems, but the survival problems, to achieve the new" regulations on the administration of feed and feed additives (hereinafter referred to as the "new rules") standard, almost every feed mills need to cast a wupan modification of ten thousand yuan, which come of money?" Recently, Chen shao, chairman of the feed industry association of maoming city animal husbandry industry association. As an industrial organization composed mainly of small and medium-sized enterprises, Chen shao is anxious about the living space of small and medium-sized feed enterprises.


In recent years, a large number of collectivization large-scale feed enterprises in maoming, the local number of feed companies from more than 40, 2008 to the present more than 60, the annual output has been growing at an annual rate of 30%, but the local small and medium-sized enterprise's market share is falling. Not only in maoming area, small and medium feed enterprises have difficulty in survival, but this two years have been particularly evident in the whole feed industry.


No equipment is not eligible for production.


2012 years ago, most small and medium-sized enterprises feed on atomic spectrophotometer, high performance liquid chromatograph of these two devices are also very strange, now have become a necessary equipment for many premix production enterprises. According to the new "feed production permission" regulation, the former is compound premixed feed production enterprise of laboratory must be equipped with equipment, one of the latter is the microelements premixed feed production enterprise must be one of the equipment. And the two devices, recently also generally rejected by many small and medium-sized enterprise boss, in their view, these devices "even buy back is just a decoration, when actually use less.


According to understand, only increase the two devices, companies will need to add 10 to 500000 yuan, with the increase of other production facilities and adjustment, many small and medium enterprises to increase feed about 1 million investment. Because the new "feed production permission" regulation, concentrated feed, compound feed, concentrate supplementary material production enterprises should design production capacity of not less than 10 tons/hour, while premix enterprises should not be less than 2.5 tons/hour. Many small and medium-sized enterprises are small in design. A medium-sized feed company in shenzhen has to rebuild its plant, almost "reopening a feed mill.


Mr Chen estimates that many of the local feed companies in maoan, if the new "feed production permit conditions" are to be modified to plant equipment, each feed company's investment is about 200 to 3 million yuan.

Where does the money come from? In the first half of 2013, the general underperformance of feed enterprises has become the consensus in the industry. Most small and medium-sized enterprises are not even able to get the feed production license under the new licensing conditions, but the high cost has left many business owners unsatisfied.


Some people are still watching for a transformation.


For small - and medium-sized feed enterprises, the pressure on the other side comes from the squeezing of large enterprises. In maoming area, for example, Yang xiang as the first foreign feed enterprises in guangxi have factories in maoming, drew DBN's undertaking, worth, twins, cofco, a large number of sea, tong wei collectivization in maoming in the enterprises, the local small and medium-sized enterprise's survival space feed greatly narrowed. According to official data, the number of feed enterprises in maoming has increased from more than 40 in 2008 to more than 60, and the annual production rate has increased by 30% a year.


 it seems to has a rapidly increasing number of feed companies is the maoming area of feed excess production capacity significantly, raise and increase the speed is not so fast, an obvious consequence is a fall in the market share of small and medium-sized enterprises competitiveness is not strong. Chen shao's maoming city sunrise feed co., LTD., is down 20% to 30% compared with last year's sales, and there are more than 50% of the local enterprises. Sticking to the traditional market has not allowed most small and medium-sized enterprises to survive in this industry.


The new regulations, maoming many small and medium-sized enterprises feed still on the sidelines, "at the moment is to choose the cooperation with large enterprises, or investment, or simply sell plant again turned to do other business, many bosses are not final." Has said.


Guangzhou pastoral feed technology co., LTD. Is a premix enterprises, with a history of more than 10 years, according to the southern rural newspaper reporter understanding, pastoral market share is gradually reduce the guangdong region, gradually to the neighboring hunan, jiangxi and other places of market development. "On the one hand, it is the pressure from big companies. On the other hand, the traditional way of selling credit in the guangdong market makes many small and medium-sized enterprises suffer." Ding sande, general manager of the pastoral song, told the southern rural newspaper that although the transport and sales expenses generated by the far market have multiplied, the profits are still better than the traditional market in guangdong.


In addition, some small and medium-sized feed enterprises began to explore the transformation of the upstream and downstream of the breeding chain. "Over the years we have established their own outside pig production base, the profit also compared to do a lot better than the feed plate, and feed mills this part, also will gradually become the supporting facilities of pig, pig feed production of future for themselves." The owner of a medium-sized feed company in guangzhou told the southern village newspaper.