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Published: September 7, 2021

Low-protein technology will increase demand for amino acids in China

For China's livestock industry, in the first half of the year, the pig price fell sharply, prices fell from a high of 36 yuan/kg at the beginning of the year all the way to the lowest point of 12 yuan/kg in June, a drop of more than 60%. Poultry prices keep low oscillation, 2018-2019 for two consecutive years of upward market led to excess capacity in the industry.  As the raw materials have been running at a high level, the gross margins of the feed industry have also fallen to varying degrees, and the whole industry is making very difficult progress. There becoming a major reason for the higher demand for amino acids in china.

Increase of feed output

According to the China Feed Industry Association, the total feed output in the first half of the year was 139.33 million tons, up 21.1% year-on-year, including pig feed output of 62.46 million tons, up 71.4% year-on-year; egg and poultry feed output of 15.71 million tons, down 10.2% year-on-year; meat and poultry feed output of 43.32 million tons, down 4.1% year-on-year; aquatic feed output of 9.24 million tons, up 9.4% year-on-year; Ruminant feed output of 6.9 million tons, up 18.1% year-on-year. 

The protein level of fattening pig feed in some large pig-breeding enterprises has dropped to 13.6%, about 2 percentage points lower than the industry average. However, small and medium-sized farms generally take the protein content as the main indicator of feed products, and the protein level of feed for fattening pigs sold by feed enterprises is still maintained at more than 15%. 

China issued in late April the "corn-soybean meal reduction replacement technology program in pig and chicken feed ", according to the Ministry of Agriculture and Rural Affairs statistical monitoring statistics, the current low-protein diets have high enthusiasm in the application of the integrated scale farming enterprises and still has room for improvement in the use of commercial feed. 

Influence of NDRC

In November 2019, the National Development and Reform Commission revised and released the "Guidance Catalogue for Industrial Structure Adjustment", which includes "the development, production, and application of small varieties of amino acids produced by fermentation process" in the encouraged category of projects to encourage enterprises to invest in the production of isoleucine, phenylalanine, histidine and other products to accelerate the domestic market demand for small varieties of amino acids. 

 Next, the Ministry of Agriculture and Rural Development will continue to improve the database of the nutritional value of feed ingredients, increase the coordination of amino acid production support policies, continue to promote the application of low-protein diets, promote the reduction of the use of soybean meal in the farming industry, and promote the high-quality development of animal husbandry. 

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