BOABC predicts that feed consumption may shrink in July for several reasons:
First, change in hog inventory structure. After concentrated slaughter in May and June, the proportion of big hogs in hog inventory has dropped 20%, giving rise to a 16% drop in feed consumption. Meanwhile, small hogs’ proportion grows, creating a 4% more demand for feed. On the whole, demand for feed from hog farms may drop 12% in July.
Second, reduction of egg layer inventory. Egg price dropped in June, causing egg farms to suffer a loss of RMB0.11/kg. Farmers are expected to cut layer inventory in July.
Third, broiler supply in surplus. Due to surplus broiler supply, broiler procurement price is predicted to drop 10% in July, likely to result in a loss of RMB1.26/bird in broiler farms. Consequently, farmers may stop supplementing young broilers to henhouses.
|
