China’s meat industry suffers from high feed cost due to energy crisis

According to analysts and industry insiders, China’s huge livestock sector is facing rising feed costs as the country’s worst power outages in years forced the shutdown of soy crushing plants, reducing supplies and pushing up prices.

The rise in feed costs comes at a bad time for China’s farmers, many of whom are suffering from losses and poor margins due to low hog prices in general.

At least half of the soybean crushing plants in the north and northeast regions of China have been closed since last week and will remain closed at least until after the National Day holiday on Oct. 1. This was according to Reuter’s interviews with a unit manager and a purchasing manager on condition of anonymity, for not being authorized to speak to the media.

The volume of soy processed across the country this month fell 9.4% compared to August, to 7.68 million tons, said consultancy MySteel in a report released on the 30th.

Source: Money Times

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