Shandong Zhouyuan Seed and Nursery Co., Ltd. Expected to Benefit From the Recovery of China's Feed Industry

Aquafeed recovery driving demand for corn in China
October 5, 2007

Shandong Zhouyuan Seed and Nursery Co., Ltd. Expected to Benefit From the Recovery of China's Feed Industry

Shandong Zhouyuan Seed and Nursery Co., Ltd.,  a company incorporated in the State of Delaware, announced that its operating subsidiary in China, Shandong Zhouyuan Seed and Nursery Co., Ltd., expects to benefit from the feed industry's upward trend due to the recovery of the domestic aquaculture industry over the next two years.

The growth in demand from the feed industry is one of the foundations of the growth of corn and corn seed consumption. According to a statement from the Information Center of China Feed Industry, over the last few years recent epidemics, the high prices of raw materials and other factors have badly affected the domestic feed industry.

About 5,000 small enterprises stopped producing over this period. However, after experiencing a downward trend for years, feed production was up more than 21 million tons in the first quarter this year, showing a remarkable increase compared with the same corresponding period last year. Profit increases in the aquaculture industry will lead the feed industry recovery, and it is expected that in the next two years the demand for corn and corn seed will continue to increase.

The proportion of seeds for feed grain use is much higher than those for industrial use in China, and this trend will continue to expand further.  Statistics from the Chinese government state that the proportion is nearly 6%. Domestic feed production has reached 100 million tons, but demand is far beyond that.

''According to '11th Five-Year Plan,' China will enhance the development of its feed industry and improve the legal systems in the feed production industry to protect and to sustain  healthy development, and give effective support to the aquaculture industry,'' said Wang Zhigang, President of SZSN, ''Such polices give our seed product enterprises a chance to develop. All of these are promote the competitiveness of China's seed and feed industry in the international market.''