|
Of the various components that make up blended feed, the premix, while constituting the smallest proportion of the total blend, (4%), requires the highest attention and technology to produce. Due to technological barriers in animal science, only companies staffed with scientists with years of practiced knowledge in animal nutrition and husbandry can produce a successful premix product. Customers are commercial farms as well as individual farmers.
Vitamin blends and premixes are used in compound feed for poultry, cattle and pigs. AgFeed's pre-mix and specially blended feed for early weaning piglets utilizes the most advanced nutritional techniques resulting in a reputation for premier products in the China market.
In terms of animal feed products, livestock producers may directly buy animal feed in finished form, referred to as "blended" feed, which already contains the concentrate and the foundational grains blended together, or, they may choose to buy the concentrate, which is composed of pre-mix and protein compounds, and then combine it with corn, hay, wheat and other elements readily available in the market to make their own blended feed. Feeding pigs a balanced diet is an essential part of the pig profit equation and since feed costs comprise 55-70% of raising costs, the quality of feed and nutrition make a significant difference to piggery profits.
AgFeed supplies two principle product lines: pre-mix for all stages of pig life, and blended feed specifically for the infant or piglet stage of life.
1. Pre-mix
According to the different growth stages of pig life, different components are necessary to maintain the healthy development of the animals and provide safe products for human consumption. Pre-mix additives are composed mainly of essential amino acids which play a critical role in protein digestion and absorption, vitamins, minerals, antibiotics, and growth promoters. AgFeed manufactures and sells several brand names of pre-mix which differ slightly in price and quality to cater to different levels of customer interest such as premium or no frills. Within each brand line there are products designed for differing stages of pig life such as newborn to 15kg, 15-30kg , 30-60kg, market ready, over 60kg boar, mating or pregnant, etc.
2. Piglet blends
Piglet blending feed is designed to both nourish and protect newborns. It is composed primarily of proteins such as fish meal and soy (30%) with the energy added in raw material grains such as corn and chaff (roughly 65%). It is designed for the market according to different requirements in terms of local climate and environment. Large scale piggeries are the main purchasers of piglet blends as they are especially concerned with maintaining piglet health to avoid disease and to establish a healthy weight gain foundation for the animal life cycle.
Other
As a minor product line AgFeed also produces pre-mix for the poultry industry and sold under three different brands. Sales constitute less than 10% of total sales.
At the Shanghai production center, pre-mix for the poultry industry is also produced and sold under three different brands. While pork is by far the predominant husbandry market in China, the country is second only to the United States in poultry, producing approximately 10.2 million tons of poultry in 20051. While the Company has no current plans to expand chicken feed manufactured, production can easily be increased without affecting the volume of pork feed produced.
1_ USDA-FAS, World Markets and Trade, March 2006
|
