Digital Re-print - May | June 2009

Feature title: Swine Flu checks China’s rapid feed output

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 Asia Focus Focus Asia

Dujiangyan Irrigation Project is a World Heritage Site in Sichuan: The world’s longest surviving
non-dam irragation system was built in 250BC on the Minjiang River - a tributary of the
Yangtze River. It diverts water to irrigate the Chengdu region which allows the production of
agriculture and livestock. From left: water is diverted to the ‘inner river’ (centre) to the bottle
neck or ‘Baoping Kou’ (left), shedding stones automatically

with conditioners and relies upon 40 to 50 transforming the financial base of farmers.

Swine Flu raw materials, excluding premixes which are

provided by the company’s research centre.
A unique feature of the feed company is that
Some 10,000 farmers are now involved in
the project.
“This is more systematic, more produc-

checks China’s
it signs guarantees with its contracted farmers
for the finished price of their livestock regardless
of market prices. The company considers this
Mrs Yan Peng,
tive, more efficient and more centralised,”
says Mr Xuegang.
He says the model is one of adopting mod-

rapid feed
a type of ‘insurance’ that means the farmer is ern farming technology that will sees slaughter
general manager of obliged to produce livestock that meets the
Tongwei’s duck and rates for pigs and ducks rise to six million and
quality and safety needs of the company. 30 million respectively in three years.
pig slaughterhouse
“This keeps our supply to the slaughter For example, the company’s duck breed-

output
in Qionglai County
that processes houses to the standards, in the volumes and ing operation near Chengdu, in Qionglai
40,000 ducks per Mr Ron Hu (right) vice-president of to a schedule that we require,” adds Mr County, houses 80,000 breeders in pens that
day and 600 pigs Tongwei Group welcomes IFIF secretary
Xuegang. “It’s proven to be very successful.” contain between 200-300 ducks.
General Roger Gilbert and China Feed
Industry Association deputy division The company together with govern- Mrs Peng is also responsible for its

C
chief for international cooperation ment in running a pilot program that brings operation and says that the breeder farm has
hina’s compound feed However, feed output at home is continu- Whole chain approach Hongjie Yang to the company’s head together farmers, the government and the contracts with 100 local farmer-growers to
production knows no ing its rapid growth.” A new strategy for the company is to office in Chengdu Hi-Tech Industry Tongwei Group to raise output efficiencies each rear 10,000 ducks per month.
bounds! It has just recorded Mr Gilbert reports that a second and develop a whole chain approach, integrating Development Zone and increase returns to farmers. Farmers are paid 1 RMB per duck reared
its most impressive increase more immediate black cloud on the horizon livestock rearing and production with feed, The program has been operating since and returned for final fattening. Imported Cherry
in output to date – hitting 137 for domestic feed producers is the fear of processing, packaging and supply to consum- and 60 for pig production. All feed is pel- 2005 and has seen some farmers lift Valley ducks are quicker to fatten at 40-plus days
million tonnes in 2008-09. That’s Swine Flu. ers through the growing use of supermarket leted and bagged. The mill outlay is straight rearing capacities from 90 pigs per year while the dark billed crossbred duck, that are
up from 2007-08 when CFIA, the “The domestic market is suffering from the chains and modern retail outlets. forward operating two pellet press lines to over 1000. In addition the project is more flavoursome for local tastes, takes longer.
China Feed Association, stated an public’s reaction to the threat of Swine Flu. According to Mr Ron Hu, the vice presi-
output of 110 million tonnes. “Following the outbreak in Mexico in April dent of the Tongwei Group, the big gains in
2009, a domestic airline carrier informed an recent years have been made as consumers
Returning form a recent visit to Chengdu alert public that it was taking all pork prod- expect higher safety and quality standards,
City, in Sichuan Province, IFIF Secretary General ucts off its in-flight menus. This immediately “which is reflected in our product branding” .
Roger Gilbert says that while the Chinese led to consumers equating Swine Flu with pig Its name has become synonymous with
economy is suffering an ongoing 24 percent production with the result that the current quality food products on supermarket
downturn in its exports, the domestic feed market price for pork products has halved.” shelves and its name is an iconic brand in
industry is developing at a relentless pace. However, one feed manufacturer exhib- China’s feed industry and reported to be
iting at the among the top 500 most valuable brands
show reported countrywide.
a 50 percent
increase in sales Pigs set the price for meat
in 2008-09 products
over 1.4 mil- Swine Flu has also impacted the econom-
lion tonnes the ics of all livestock and meat product prices.
year before. A “Pig prices set the market for meat prices
second, larger in China,” says Mrs Yan Peng, the general
company, cur- manager of the Tongwei Group’s pig and
rently produc- duck slaughterhouse.
ing some 4.2 And as a result this has depressed other
million tonnes, meat prices as pig prices are a benchmark for
Feedmill general Wang Xuegang, general manager
is projecting the meat industry, she adds.
manager Wang of Tongwei’s Qionglai County
Xuegang (left) feedmill says the company is on to achieve five Her Tongwei facility slaughters some 600
discusses pellet quality target to exceed the 300,000 million tonnes pigs per day and 40,000 ducks.
with assistant general tonnes of bagged feed output of output by “While we deliver fresh to Chengdu City,
manager Nie Liang achieved in 2008 2010. we deliver frozen all over China,” she adds.
The latter is “We expect the market to be depressed
the well-known for the next four to five months before
“While many equipment manufacturers Tongwei Group, with its head office located in the recovery because of the lifecycle of our pigs
attending the annual feed exposition, this Chengdu Hi-Tech Industrial Development Zone. and our production system.”
time hosted by Chengdu City, Sichuan, It is the world’s largest manufacturer of The feedmill providing the duck and pig
there were clear indications of the cut aquatic feeds and a major livestock and poul- producers, and owned by Tongwei, is run
back in the international marketplace due try feed producer in China. It has in excess by general manager Wang Xuegang. His mill
to the financial crisis is depressing projec- of 100 manufacturing plants throughout the is producing some 300,000 tonnes of feed
tions for the remainder of the current year. country. per year; 40 percent for duck production

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