16 B u s i n e s s p l a n | F i s h m e a l a n d f i s h o i l p r o d u c t i o n Market analysis Using of fishmeal to improve the quality of pigs feed solves simultaneously both problems - reduces the need for feed and enables the production of more healthy pigs. POTENTIAL OF THE FISHMEAL CONSUMPTION BY PORK INDUSTRY Potential of the fishmeal consumption by pork industry To assess the potential demand for fishmeal from the Chinese pork industry The following data were used: • Existing pig population in China; • Average feed consumption per 1 pig for its average lifetime; • Recommended share of fishmeal / fish oil in effective animal feeds; • As well as the types of pig farms operating in China. Pork production in China is produced by three categories of farms (The Economist): • Backyard farms; • Specialized households; • Commercial farms. • There started a massive wave of consolidation that is swallowing up smaller farmers. Their main reason is to get an access to agricultural technologies and to improve them in Chinese pork industry. The Chinese government had signaled its strong desire for overseas agriculture. It had unveiled its five-year plan, which amounts to the Communist Party’s roadmap for the country’s economy. A major focus of this plan: buying up overseas farmland and foreign food companies. By the end of 2012, the Chinese owned $900 million in U.S. farmland, and by the end of 2014 the Chinese stake raised to nearly $1.4 billion. PIGS FEED China is very sensitive about wanting to produce its own pork. But it has a big problem in the industry - the pig’s feed. However, it is hardly self-sufficient, because it relies very much on imported feed China once grew most of the soybeans it needed, and in the mid-1990s, it began importing huge amounts from South America and the United States. Another major feed source — Chinesegrown corn — is two or three times more expensive than on world markets, because of government price supports. The Chinese are also growing concerned with the environmental and health costs of more pork production (U.S. Department of Agriculture). Pigs in China are primarily on the east coast, where Shang Hai Farm operates. The area has the world’s highest concentration of pigs and there is a danger of pig’s diseases. R E C A P :
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