Some large slaughter enterprises (each capable of more than 1 million heads a year) have been engaged in hog production and some others plan to take similar actions. These large slaughter enterprises, with a combined productive capacity of 90 million heads of hogs a year, slaughtered nearly 60 million heads in 2008. Assuming a hog self-supply of 30%, they are expected to raise 30 million heads themselves, needing 8 million MT feed a year.
Besides, feed producers are developing a hog productive capacity of 50 million heads/year. They will consume large quantities of self-made feed.
It is estimated that commodity feed market demand may be 73 million MT (in terms of compound feed) a year, suggesting a decrease of 22%. The demand for commodity feed is predicted to keep shrinking in the next few years.
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