44
July 2015, Vol.8, No.3 View Rabobank: Global Demand for Protein in Feed Increases FAMSUN to Launch the K15 Gear Box Pellet Mill How to Formulate Low- Protein Diets for Pigs, Poultry

MY VIEW Vol.8, No.3

  • Upload
    my-view

  • View
    232

  • Download
    4

Embed Size (px)

DESCRIPTION

Rabobank: Global Demand for Protein in Feed Increases FAMSUN to Launch the K15 Gear Box Pellet Mill How to Formulate Low- Protein Diets for Pigs, Poultry

Citation preview

Page 1: MY VIEW Vol.8, No.3

July 2015, Vol.8, No.3

View

Rabobank: Global Demand for Protein in Feed Increases

FAMSUN to Launch the K15 Gear Box Pellet MillHow to Formulate Low-

Protein Diets for Pigs, Poultry

Page 2: MY VIEW Vol.8, No.3

2 MY View Vol.8, No.3

03

37

11

08

18

39

32 24

CONTENTS

Industry NewsExecutive Summary of OECD-FAO Agricultural Outlook 2015Global Protein Developments:What are the Implications for the Meat Industry?Rabobank: Global Demand for Protein in Feed Increases

FAMSUN NewsFAMSUN's Training Courses for Developing Countries Begain Its Second EditionFAMSUN Demonstrated Its One-Stop Integrated Solutions at 2015 Victam InternationalFAMSUN Debuted the Eurofam Brand at the2015 China Animal Husbandry Expo

Focus on ChinaLarge Chinese Pig Companies toExpand Business

TechnologyHow to Formulate Low-Protein Diets for Pigs, PoultryQuality Farm Environmental Control System to Secure ProfitabilityAn Introduction to the Adjustment Process of the Modern Crushing Plant

Project Eurofam Animal Farming Equipment to Help Yangchen Group Ensure theSource Safety of Food ProductionThe Feed Complex in Malaysia to be Delivered The Turn-Key Project of the Wuhan Chia Tai Group Aquatic Products Co., ltd. Began Trial Production

FPD TeamTraining and Practice Combined to Help

SpecialThe Study Tour of SantehCorp. to FAMSUN Reached aSuccessful Conclusion

Product UpdateFAMSUN to Launch the K15 Gear Box Pellet MillThe Performance and Popularity of K35 and K25 Pellet MillsThe Upgraded SJPS215B Single Screw Aquatic Extruder Put into Operation

copyright 2015 Muyang . All rights reserved.

Page 3: MY VIEW Vol.8, No.3

Integrated Solution Provider 3

News

Industry News

Prices for crops and livestock products showed diverse

trends in 2014. Among crops, two years of strong harvests

put further pressure on prices of cereals and oilseeds.

Tighter supplies due to factors including herd rebuilding

and disease outbreaks supported highmeat prices,

while the prices of dairy products dropped steeply from

historic highs. Further adjustments to short-term factors

are expected in 2015, before the medium-term drivers of

supply and demand take hold.

In real terms, prices for all agricultural products are

expected to decrease over the next ten years, as production

growth, helped by on-trend productivity growth and

lower input prices, outpaces slowing demand increases.

While this is consistent with the tendency for long-term

secular decline, prices are projected to remain at a higher

level than in the years preceding the 2007-08 price spike.

Demand will be subdued by per capita consumption

of staple commodities approaching saturation in many

emerging economies and by a generally sluggish recovery

of the global economy.

The major changes in demand are in developing countries,

where continued but slowing population growth, rising per

capita incomes and urbanization all increase the demand

for food. Rising incomes prompt consumers to diversify

Executive Summary of OECD-FAO Agricultural Outlook 2015

their diets by increasing their consumption

of animal protein relative to starches. For

this reason, the prices of meat and dairy

products are expected to be high relative to

the prices of crops; while among crops the

prices of coarse grains and oilseeds used for

feed should rise relative to the prices of food

staples. These structural tendencies are in

some cases offset by specific factors,such as

a flat demand for maize-based ethanol.

In Asia, Europe and North America additional

agricultural production will be driven almost

exclusively by yield improvements, whereas

in South America yield improvements and

additional agricultural area are projected.

Modest production growth is expected in

Brazil is poised to become the foremost supplier in meeting additional global demand,

mostly originating from Asia.

Page 4: MY VIEW Vol.8, No.3

4 MY View Vol.8, No.3

Africa, although further investments could

raise yields and production significantly.

Exports of agricultural commodities are

projected to become concentrated in

fewer countries, while imports become

more dispersed over a large number of

countries. The importance of relatively

few countries in supplying global markets

for some k ey commodit ies increases

market risks, including those associated

with natural disasters or the adoption of

disruptive trade measures. Overall, trade is

expected to increase more slowly than in the

previous decade, but maintaining a stable

share relative to global production and

consumption.

The current baseline reflects fundamental

supply and demand conditions on world

agricultural markets. However, the Outlook

is subject to a variety of uncertainties, some

of which are explored by stochastic analysis.

If historical variations in yields, oil prices

and economic growth are projected into

the future, then there is a high probability

of at least one severe shock to international

markets within the next ten years.

Commodity highlights

Cereals: High stocks and decreasing

production costs are driving nominal cereal

prices further down in the short term, while

sustained demand and rising production

costs should increase nominal prices again in

the medium term.

Oilseeds: Strong demand for protein

meal wi l l dr ive fur ther expansion of

oilseed production. This will result in a high

contribution of the meal component to the

overall oilseed return and further favour

expansion of soybean production especially

in Brazil.

Meat: Output is expected to respond

to an improvement in margins, with lower

feed grain prices set to restore profitability

to a sector that has been operating in an

environment of particularly high and volatile

feed costs for most of the past decade.

Fisheries: Worldwide fisheries production

is projected to expand by almost 20% by

2024.

Aquaculture is expected to surpass total

capture fisheries in 2023.

Brazil

This year’s Outlook contains a special focus

on Brazil. This country ranks among the

world’s ten largest economies and is the

second largest global supplier of food and

agricultural products. Brazil is poised to

become the foremost supplier in meeting

additional global demand, mostly originating

from Asia.

S u p p l y g r o w t h i s p r o j e c t e d t o b e

driven by continued improvements in

produc t iv i t y,with higher crop y ie lds,

some conversion of pasture to cropland

and more intensive livestock production.

Structural reforms and a reorientation of

support towards productivity enhancing

investments, for example in infrastructure,

could foster these opportunities, as could

trade agreements that improve access to

foreign markets.

Brazil has made outstanding progress in

eliminating hunger and reducing poverty.

Prospects for further reductions in poverty

through agricultural development are

widening,in some food crops as well as

in higher value products such as coffee,

h o r t i c u l t u r e a n d t r o p i c a l f r u i t s . Th e

realization of these opportunities calls for

further targeting of rural development

policies.

Brazil’s agricultural growth can be achieved

sustainably. While additional supply will

continue to come more from productivity

gains than area increases, the pressure on

natural resources is expected to be alleviated

b y e nv i r o n m e n t a l a n d c o n s e r va t i o n

initiatives, including support for sustainable

cultivation practices, the conversion of

natural and degraded cropland to pasture,

and the integration of crop and livestock

systems.

From: OECD-FAO Agricultural Outlook 2015

Page 5: MY VIEW Vol.8, No.3

Integrated Solution Provider 5

Global Protein Developments: What are the Implications for the Meat Industry?

Global protein demand will increase by a factor of 3.5 over

a 50 year period, namely from 1980-2030. Poultry will show

the biggest increase in demand, followed by eggs, with

seafood and beef having the

lowest increase in demand, writes

Stuart Lumb.

Countries have different dynamics

with regard to protein demand,

with this being correlated to

individual income.

In countries with an annual income

<$5000, food is seen as a need. In

the BRIC countries (income $5,000-

$15,000) food and eating is seen as

a social occasion.

In more affluent countries with

incomes of $15,000- $40,000,

where supermarket shopping is

the norm, food is associated with

wellbeing.

Finally in countries such as the USA & EU (incomes > $40,000),

food is seen as stimulation and there is social responsibility

shown with regard to protein consumption, concerns about

the environment and also animal welfare.

Meat production from 2010-2020 will increase hugely

in China, naturally in the form of pork, although protein

production in Asia is very costly as American corn is much

cheaper than Chinese corn.

What Can We Expect in the Coming Years? According to Albert Vemooij, Rabobank, there will be

bullish global protein markets supported by ongoing low

feed costs.

In 2014, PEDv outbreaks resulted in surging global pork

prices, with drought impacting on the global beef industry.

In 2015, all proteins are searching for stability. Regarding

pork, strong supply and weak demand will pressure prices.

Page 6: MY VIEW Vol.8, No.3

6 MY View Vol.8, No.3

China has seen a 10% drop in its national

pig herd and will look to imports to cover

the shortfall, but there are exchange rate

implications here.

The weather will continue to dominate the

beef supply situation with limited supply

from the main exporters namely US, Brazil

and Australia.

Changes in the beef industry always take

a long time because of the period it takes

for cattle to reproduce, relative to poultry

and pigs.

Regarding poultry, an upbeat margin

outlook due to lower feed costs, high beef

prices and strong demand in most regions

except China.

Avian influenza spread, exchange rate

volatility and turmoil in regions such as the

Middle East and Eastern Europe impact

global trade and shifting trade streams.

In the future, India will potentially become a large exporter of buffalo

meat.

Industry Developments: Meat CompaniesUS and Brazilian meat companies dominate, namely Tyson in the US

and JBS in Brazil.

The meat industry is under increasing pressure. It must become more

efficient and mergers are bound to take place.

Source:The Poultry Site

Page 7: MY VIEW Vol.8, No.3

Integrated Solution Provider 7

Rabobank: Global Demand for Protein in Feed Increases

As global demand for meat, fish and dairy grows, so too does demand for animal feed.

The demand for vegetable protein meals for use in animal feed has increased, and

this trend is likely to continue over the coming decade, says Dutch Rabobank.

The increasing share of protein in feed, combined with increasing meat consumption and

absolute population growth, raise important questions on how the supply of vegetable

meals can keep pace with rising demand for animal feed.

Trend of relative scarcity in protein meals to continue

Rabobank believes the drivers for this uptick in protein usage, and the range of potential

outcomes for the global food & agribusiness (F&A) are of strategic importance. Depending

on the strength of the supply chain response, Rabobank expects the longer-term trend of

relative scarcity in protein meals to continue-and, with it, periodic bouts of significant price

volatility-will remain the norm for the coming decade.

Enhancing feed conversion efficiency

"Companies can position themselves effectively, depending on their position in the chain,

by securing access to protein feed in the long term, developing alternative protein supplies

and continually enhancing feed conversion efficiency," says Clara van der Elst, senior analyst

Rabobank Food & Agribusiness. As a result, they will experience less volatility or high prices.

Actual 'gap' between protein meal demand and supply will never materialise

Depending on the quality of the harvests of the coming years — droughts could cause a

steep decline — the current trends suggest the vegetable meal supply/demand balance

may experience pressure over the coming decade. In turn, this will trigger a range of

responses along the meat production supply chain. An actual 'gap' between protein meal

demand and supply will never materialise, of course, as the market will respond to higher

prices that result from demand starting to increase faster than supply.

Strategies for F&A companies

Rabobank has plotted the strategies F&A companies could deploy to deal with the

opportunities and risks presented by these issues. These vary along their position in the

supply chain, but consist of roughly two kinds. The first is R&D or technology, in areas

such as crop yield improvements, feed formulation, feed conversion and alternative feed

protein development. The second is for business strategies to involve closer alliances and

potentially integration between companies operating in adjacent steps of the supply chain.

Source:All About Feed

Page 8: MY VIEW Vol.8, No.3

8 MY View Vol.8, No.3

Based on the first partnership between Henan University of Technology and FAMSUN-2014 Training

Course on Cereal and Tuber Crops Processing Technology for Developing Countries—the one-week

program witnessed its second edition starting in the Technology Park of FAMSUN on June 7.

The training group was composed of 32 trainees from 12 countries. As a part of the whole program,

the trainees spent the first ten plus days in Henan University of Technology where lectures and

presentations were given to help learners obtain knowledge and research of cereal science and

processing technology, global food production, standards of cereal and tuber crops processing, cereal

extrusion technology, feed processing technology and so forth.

On June 7, the whole group arrived at the Technology Park, starting their stay and training at

FAMSUN. Trainees toured the Technology Park where they were shown the latest equipment, modern

workshops and the exhibition hall of FAMSUN.

National Food & Grain Industry Training Institute (Construction Office) of Henan University of

Technology is a professional institute in charge of the domestic and China-aid training programs of

food and grain industries.

During the discussion session, Li Liying, vice-president of Henan University of Technology noted

that the cooperation between FAMSUN and Henan University of Technology was such a favorable

beginning for furnishing developing countries in need with technological assistance. In the future,

the normalization of cooperation between the two parties

would usher in more changes in the training subjects,

the trainer faculty and the frequency of the training, and

would empower the global strategy of FAMSUN launching

more cooperation in national grain system high end

training and other large programs.

During the training part which lasted for a week, the

trainees attended lectures exploring the subjects of food

and feed processing and biomass etc. and toured some

leading companies in the industry.

FAMSUN's Training Courses for Developing

Countries Begain Its Second Edition

FAMSUN News

Page 9: MY VIEW Vol.8, No.3

Integrated Solution Provider 9

The world's leading event for animal

and aquatic feed, pet food and biomass

industr ies—Victam International2015

commenced on June 9 in Cologne Exhibition

Halls (Koelnmesse) Cologne, Germany.

The three-day exhibition concentrated on

the latest development in feed machinery,

biomass pelleting technologies,aqua feed

production and pet food production and

so forth. Since its first session in Utrecht,

Netherlands in1964, Victam International

has been enjoying the attendance of world

famous feed machinery manufacturers and

projects providers annually.

Victam International 2015 witnessed the

presence of buyers from 120 countries,

among whom 30% being decision-makers

from various companies. Among the latest

products and solutions from the 278 top

global companies, FAMSUN which has

been committed to the expansion and

intelligentification of feed industry and the

green safe feed production, showcased

its one-stop integrated solutions for feed

industry.

FAMSUN Demonstrated Its One-Stop Integrated

Solutions at 2015 Victam International

At the exhibition, FAMSUN brought forth its

series of feed machinery products, including

SWFL130 Crusher, stainless SJHS4 Mixer,

MY120*2 extruder and WEM electronic

control panel. Along with these products

were the two blockbuster products—35t

gear box pellet mill and the vacuum coater,

specifications of both well above global

standards.

Experts of European R&D Institute of

FAMSUN introducing the new facility to

customers

Page 10: MY VIEW Vol.8, No.3

10 MY View Vol.8, No.3

The 13th (2015) China Animal

Husbandry Expo or CAHE, after

the previous 12 successful

sessions, moved to Chongqing,

China in 2015. From May 18—21, the three-

day annual event attracted more than 1200

companies from 37 countries, covering the

entire industry chain from farm to table. At

the expo, with an aim to establish the “smart

and systematic” farming practices,FAMSUN

brought forth its latest products for animal

husbandry and integrated farming system

solutions.

The highlight of FAMSUN’s exhibition was

the series of its line-up of animal farming

engineering systems which include:

1. The stall system for pig housing, the

cage and floor-rearing system for broilers,

the cage rearing system for layers, steel

structure house, environmental control

FAMSUN Debuted the Eurofam Brand at the

2015 China Animal Husbandry Expo

system and waste treatment system;

2. The smart planning solutions for animal farming;

3. The debut of the brand of “Eurofam”at CAHE.

At the exhibition booth, customers were given detailed explanations about the

Eurofam electronic feeders, manure cleaners, stall design and the facilities for

layers. The floor-rearing poultry house for broilers and breeding birds along with

the new central egg collector were showcased at the booth.

As a leading player in feed machinery and farming facilities manufacturing,

FAMSUN is committed to the innovation and development of state-of-the-

art products and smart systematic farming practices to facilitate the structural

readjustment and upgrade of the animal husbandry industry.

Floor-rearing poultry house for broilers and

breeding birds

Leaders from MOA and CAAA with FAMSUN leaders

and foreign technical experts at the booth

Eurofam electronic feeder

Page 11: MY VIEW Vol.8, No.3

Integrated Solution Provider 11

Product Update

FAMSUN to Launch the K15 Gear Box Pellet Mill

With the intensive development of large

scale feed processing plants, high output,

low energy consumption feed processing

equipment is in urgent need. The new gear

box pellet mill launched by the European

R&D Institute of FAMSUN is equipped

with dedicated feeder and conditioner.

So far, the K35(SZLH685×245,250kW) and

K25(SZLH575×210 ,200kW ) have been

developed and put into operation. The K

15 gear box pellet mill, which is still in trial

production, is expected to be put on the

market in August, 2015.

The K15 gear box pellet mill is designed

especially for the medium lines to produce

feed for livestock and poultry.

Ye Zhen

Item

Type

Main moter power(kW)

Internal diameter of the ring die

effective width of the ring die(mm)

transmission mode

Installation manner

Number of rollers

Cooling system for the gear box

Main parameters

SZLH535×190

160

535

190

gear

Hold hoop

2

/

feed production line

Feed for finishing pigs

feed for chickens/ ducks

output

15~20 t/h

10~15 t/h

Product highlights: high output with little consumption of power, easy and reliable to operate.

1. High output and low consumption of power

Our experts optimized the structure and the parameters of the pelleting chamber so that the

distribution of the feed is even so as to ensure high output with low consumption of power. In

the meantime, the optimized pelleting structure ensures longer service life of the components.

2.Stable operation

The import brand of gear box is adopted for the machine. It boasts characteristics such as high

transmission efficiency, low noise and vibration and long service life.

3. Easy to operate

The machine is supported by dedicated handling workpiece and electric or pneumatic hoisting

device, which make the changing of the press roll of the ring die easier;

The automatic control system of the pellet mill makes the operation easy and convenient

Specilally designed axis-end connection saves the trouble of removing the motor.

4.Safe and reliable

The devices, especially the quick power break device, gearbox iron and oil level monitor are

designed according to CE standardization and all the three components are import brand

products.

Page 12: MY VIEW Vol.8, No.3

12 MY View Vol.8, No.3

The safety pin shield prevents the safety pin from bursting out owing to overload.

The fender device of the sample viewing port prevents the steam and materials from spraying out and stops the operator's hand accidentally reaching into the port.

The safety shield of the bypass door shaft protects the operator against the fast running components when the cylinder is working.

Page 13: MY VIEW Vol.8, No.3

Integrated Solution Provider 13

Emergency stop switch, safety switch and gear box iron and oil level monitor

Emergency stop switch: to prevent the operator from suffering futher harm in case of an accident.

Safety switch: The pellet mill will not start when the door is open.

Gear box iron monitor: The device is equipped with magnetic iron remover to ensure safety.

Oil level monitor: The monitor will sound an alarm when the oil level is below the set value.

The single or double deck regular blade conditioner, DDC, quality unit and the combination of

the conditioners can be customized by FAUMSUN. Different configuration plans are available

for customers according to their category of the feed, curing demand.

New ancillary products for K15 pellt mill:

Item

feeder

conditioner

Type

MUWL535

MUTZ535

Notes

singer deck

15~20 t/h feed for finishing pigs

Page 14: MY VIEW Vol.8, No.3

14 MY View Vol.8, No.3

The Performance and Popularity of K35 and K25 Pellet Mills

New gear box pellet mills are the main focus of the European R&D Institute of FAMSUN. The two types of

mill on stream are: K35(SZLH685×245 with its power being 250KWandK25(SZLH575×210(with the power

being 200KW; either of the two machines is equipped with dedicated feeder and conditioner.

Highlights of the products:

The outstanding pelleting technology ensures the high output and low consumption of the two machines.

The pelleting chamber of the mill is optimized so that the distribution of the materials in the pressing area is

even, giving full play to the capacities of the pellet mills.

Both K35 and K25 pellet mills have power-off protection, sampling shield, cylinder shield, coupling shield and

oil level monitor.

When it comes to stability, the safety factor of the pellet mills is 1.3 times of that of their international

counterparts.

In July 2014, the first K35 pellet mill was put into operation at a customer's plant. After three months'

production, the customer was very satisfied with the machine.

SZLH575×210

200

575

210

20(25

/

Type

Main motor power(kW(

Internal diameter of the ring die(mm(

Effective width of the ring die(mm(

Transmission mode

Installation manner of the ring die

Number of rollers

Output(t/h(

Cooling system for the gear box

Automatic greasing system

SZLH685×245

250

685

245

35(40

yes

gear

Hold hoop

2

standard configuration

Main parameters:

Page 15: MY VIEW Vol.8, No.3

Integrated Solution Provider 15

According to the testing results of the third-party evaluation agency, the

output of the K35 mill reached 38.1t/h with the power consumption being

6.27kWh/t.

for production of feed for medium and large pigs ( die orifice 3.8mm, motor power 250KW)

The K35 pellet mill at the customer's plant

K25 pellet mill at the plant of the customer (two pictures above)

SPM of Thailand,MANISA from Turkey, Al-Khumasia from Saudi Arabia, the CP

Group etc. placed orders for the K35 pellet mill. The first K25 pellet mill was put into

production of feed for ducks and chickens at the factory of a customer in Guangxi

province in January 2015.

Afterwards, orders were made by customers such as the Morocco-based Benwayand

Turkey-based TDS.

38.1t/h with 6.27kWh/t power

Page 16: MY VIEW Vol.8, No.3

16 MY View Vol.8, No.3

The Upgraded SJPS215B Single Screw Aquatic Extruder Put into OperationMi Changyu

With the concerted calibration of FAMSUN and the customer from Wuhan city, the brand new SJPS215B(315kW(single

screw aquatic extruder was put into operation.

The extruder is mainly employed to produce sinking crab feed and floating fish feed for the four major Chinese carps.

Besides, the SMTZ50C Density Control System is also used to make sure the high quality. See picture 1

With the help of the density control system, the production of sinking extruded crab feed

was smooth with the degree of vacuum being surpassing -0.05MPa( picture 2). With the

degree of vacuum being controlled by the valve, the volume weight of the crab feed can

reach beyond 730g/L.

Specifications and Power:

Name

Extruder

Triaxial conditioner

Feeder

Density control system

Type

SJPS215B

SPTZ45

TWLL24

SMTZ50C

Power(kW)

315(variable-frequency main motor)

11+30

3

2.2+1.5

Picture 1 The SJPS215B Extruder

Picture 2 The working degree of vacuum of the

density control system

Page 17: MY VIEW Vol.8, No.3

Integrated Solution Provider 17

The production parameters for compound crab feed: pore size of the template(2.7mm; number of holes 579; cutters

8( thickness 0.3mm). See picture 3: feeder23Hz; temperature of the conditioner 85~90(degrees Celsius; frequency of

the main motor 37 Hz; load current 390~400A; load factor; cutter frequency around 40 Hz; screw pump frequency

8 Hz; vacuum pump frequency 40 Hz; degree of vacuum -0.05 MPa; volume weight of the finished product after

drying 680g/L; sink-rate 100%; water solubility (2h.

+9t/h

With the SMTZ50C density control system and the variable frequency

of the main motor of the extruder, the output of the extruded sinking

crab feed reached 8.5t/h and the output went beyond 9t/h in normal

production, twice as much as the yield of a single-screw extruder

with regular configuration. In the meantime, the calibration for the

production of low-starch ( the starch content being around 10%) grass

carp floating feed was done successfully to the customer's satisfaction.

Picture 3 the production control of crab feed

Picture 4 finished pellets of the crab feed

for production of floatsam for tilapia (die orifice 4.0mm, motor power 250kW)

Page 18: MY VIEW Vol.8, No.3

18 MY View Vol.8, No.3

Project

Yangchen Group is a scientific and technological enterprise integrating pig breeding, commercial pigs farming, feed R&D and

production, development of biomass and ecological agriculture demonstration. The two projects Eurofam signed with Yangchen

Group were: the pig farm with a capacity of 5000 pigs of Yangchen (Fufeng, Baoji) Animal Husbandry Co., Ltd. and the pig farm

with a capacity of 3000 pigs of Hanyin Jinshuo Co., Ltd.

Yangchen (Fufeng, Baoji) Animal Husbandry Co., Ltd. is located in Fufeng county, Baoji city of Shaanxi province. The project

registered a total investment of CNY 150 million and of the total area of 169333 square meters, 9333 square meters is used for the

construction of office building, staff quarters and other supporting facilities; the remaining 160000 square meters is used to build

a pig propagation field. When operational, the pig farm can hold 5000 basic sows, annually, 40 thousand landrace large white

sows, 50 thousand commercial piglets and ten thousand finishing pigs.

The pig farm of Hanyin Jinshuo Co., Ltd. is located in Hanyin county, Ankang city of Shaanxi. The farm is designed to hold 3000

basic sows and can produce 30 thousand landrace large white sows, 30 thousand commercial pigs and 6000 finishing pigs.

To propel the development of pig farming of Yangchen Group, the automatic feeding system, environmental control system, stall

system, farm sewage system and plant network control facilities are here to help.

Eurofam Animal Farming Equipment to Help Yangchen

Group Ensure the Source Safety of Food Production

Page 19: MY VIEW Vol.8, No.3

Integrated Solution Provider 19

Page 20: MY VIEW Vol.8, No.3

20 MY View Vol.8, No.3

Page 21: MY VIEW Vol.8, No.3

ENG PENG Farming Co., Ltd. is a subsidiary of ENG PENG Group. As the largest animal products supplier in Sabah, ENG

PENG Group which now has 20 plus subsidiaries, has been committed to the development of the entire chain of livestock

and poultry farming for 30 years.

To execute the strategy of extending the industry chain upstream, ENG PENG Group partnered with FAMSUN in 2014 to

launch the feed complex project. The complex includes a silo system with a capacity of 4500 tons, a warehouse for raw

materials and finished products, a soybean meal bulk warehouse, two 1210C pelleting lines and one material extrusion

line.

The project is supported by the latest technologies such as material processing, crushing, extruding, preparing, mixing,

pelleting, cooling and automatic packing and controlling.

The project which is expected to be operational by the end of 2015, will not only meet customers' daily demand for feed

for their own animals, but also support other farms and household farmers, bringing ENG PENG Group substantial profit.

The successful delivery of the prototype project will be a great boon to tapping into the Malaysian market and enhancing

FAMSUN'S brand in Southeast Asia featuring other countries such as Indonesia and the Philippines.

The Feed Complex in Malaysia to be Delivered

Integrated Solution Provider 21

Page 22: MY VIEW Vol.8, No.3

The Turn-Key Project of the Wuhan Chia Tai Group Aquatic Products Co., ltd. Began Trial Production

22 MY View Vol.8, No.3

Page 23: MY VIEW Vol.8, No.3

The project which broke ground on June 6, 2014, began its trial

production on April 10, 2015. Wuhan Chia Tai Group(known as CP

Group) Aquatic Products Co., ltd. was an EPC project by FAMSUN.

Covering an area of approximately 92266.67 square meters and

worth a total investment of CNY 15.49 million, the project consists

of one extrusion line, two pelleting lines for shrimp and crab feed,

two hard pellet fish feed lines as well as an extra extrusion line;

the Phase One of the project can produce 150 thousand tons

aquafeed annually.

With the support of the up-to-date technologies and products

from FAMSUN, the project features the specialization of aquafeed

and automatic production standards:

1. Central batching system: theWEM4000 computer batching

system with its high batching precision, can measure the

consumption of power, steam and materials of unit product;

record equipment deviation and warn the maintenance staff to

conduct preventive maintenance; efficient inventory management

also ensures the scheduled production to be carried out for timely

delivery.

2. Automatic sampling: There are 19 autosamplers for the

production lines. The samples, after automatic packing and coding,

are delivered to the master control room by belt conveyer for

testing.

3. Products with different specifications to be sampled at one time:

For example, the fry feed can be also sampled in the production

for crushing feed for fish.

4. Dedicated returning line for the materials to save space and

time, reducing labor and the cost of packaging.

Wuhan is affluent in lakes and thus enjoys developed aquaculture.

As the demand for fish, crabsand crayfish increases, the market size

for the aquafeed reaches up to one million tons per year.Wuhan

Chia Tai Group Aquatic Products Co., ltd. in Shuihonglingang

Industrial Park, in HannanDistrict, Wuhan is poised to serve the

market.

Integrated Solution Provider 23

Page 24: MY VIEW Vol.8, No.3

24 MY View Vol.8, No.3

Technology

Properly balanced low-protein diets enhance animal performance and improved

profitability — assuming prices for crystalline amino acids are favorable.

Using crystalline amino acids to lower crude protein concentration by 2 percent will not

create problems in animal performance or carcass characteristics.

In the post-antibiotic era, low-protein diets are rather the norm than the exception

and their benefits are increasingly recognized even when antibiotics are still used in

formulations for pigs and poultry. Assuming cost is about the same, feeding low-protein

diets (that are fully supplemented with all essential amino acids) can lead to enhanced

health and even improved feed efficiency.

Let’s examine each statement in detail to understand why and when low-protein diets

can be beneficial from a biological point of view and when this translates to increased

profitability.

The role of synthetic amino acids

To begin with, a low-protein diet is one that provides all required amino acids without

excesses. Here, we must stress again that alow-protein diet is not meant to be one that

does not cover the animal requirements for essential amino acids so that they experience

reduced performance. Instead, it is the excess amino acids that are trimmed, and by excess

we mean the unavoidable surpluses of all amino acids used to satisfy the need for the first

limiting amino acid. The latter refers to lysine for pigs and methionine for poultry (in most

conventional corn-soy type diets).

Now, to lower the crude protein concentration of a diet, the use of synthetic amino acids

is of paramount importance, and here is where economics should be in favor of the lower-

protein diet. As of today, only crystalline lysine, methionine, threonine and tryptophan are

commercially available at reasonable prices. As such, we must continue to provide some

excess protein in order to cover the needs of other essential amino acids, such as valine

and isoleucine.

How to Formulate Low-Protein Diets for Pigs, Poultry

Page 25: MY VIEW Vol.8, No.3

Integrated Solution Provider 25

The question then becomes:How much

can we lower crude protein?

The answer is rather easy, but it has

taken many years of research to discover.

Undermost practical conditions, lowering

crude protein concentration by two

percentage points,by using crystalline

amino acids (for example, from 18to 16

percent crude protein inthe diet), creates

no problems in animal performance or carcass characteristics.

A reduction of four percentage points requires a bit more work. For this,

other amino acids,such as valine and isoleucine must be well balanced by

introducing less conventional feedstuffs into the feed formulation.

In addition, all amino acids should be expressed ona digestible basis, whereas

the energy of the diet should be expressed using a net energy system (in the

case of pigs).

Benefits of low-protein diets

But, let’s get back to why low-protein diets are beneficial.

First, the animal benefits from less excess protein (nitrogen)that has to

deaminate (detoxify) as free nitrogen in the blood system is toxic and must

be excreted (via urine) –and that at a significant energy expenditure.

This brings us to another benefit, namely less urine production and

consequently lower demand for water. This translates to less manure volume.

In addition, what manure is produced is lower in nitrogen, not only because

of less nitrogen in urine, but also because with lower-protein diets, protein

digestibility is increased and as such less nitrogen is excreted in fecal matter.

At the end, less land is required to dispose the manure,which is a constant

headache in many parts of this world.

Utilization of the net energy system

Now, as the animal has less excess protein to get rid of (anenergy-consuming

process), it is left with some spare energy,and here we run the risk of

increasing carcass lipid concentration if we are not vigilant.

This becomes especially tricky as we go from

two to four percentage points reduction in

dietary crude protein concentration.

And, here is where the use of the net energy

system is of most importance.

As net energy is expressed independently of

dietary crude protein (a problem inherent

in the metabolizable energysystem that is

widely used especiallyfor poultry feeds), we

can formulate low-protein diets without

increasing carcass fatness.

As such, we can take advantage of the

energy “surplus”and direct it to productive

purposes.

This produces improved feed efficiency,

which is a lwaysa good thing, and, of

course,lower cost of production.

In conclusion, low-protein diets are good

for the animal, the environment, and the

producer.

All these assuming the cost of crystalline

amino acids does not rob us of all these

benefits.

By : Ioannis Mavromichalis, Ph.D.

From: Feed International

Page 26: MY VIEW Vol.8, No.3

26 MY View Vol.8, No.3

With the rapid development

of information technology,

t h e m o d e r n i z a t i o n a n d

informationizat ion of the

animal husbandry industry is

inevitable. The high speed development year

by year of the animal husbandry industry

in China squeezes the land available to

animal farming. With the ever-increasing

cost of labor, the improvement of piggery

utilization, automation, labor efficiency

and especially environmental control have

become the highest priorities.

The environmental control in animal

farming involves the control of temperature,

humidity, light, noise, microbes, dust, and gas

composition and the content of it. Proper

environmental control technology ensures

the animals enjoy suitable temperature,

humidity, absence of heat stress and cold

stress and releases harmful gas, dust and

microbes.

Cooling products are the highlight of

FAMSUN farming. The sidewall FRP blower is

of the universal axial flow fan type. Different

modes of ventilation can be applied in

different seasons. Longitudinal ventilation

is often used in summers to lower the

temperature ensure the right wind speed

and in the meantime control the humidity

and dust of the house. Lateral ventilation is

carried out by the combination of sidewall

fan and ventilation window to make sure

the air go through the house transversely.

The natural and mechanical combined

ventilation is referred to when there is large

temperature difference.

Quality Farm Environmental Control System to Secure Profitability

When it comes to longitudinal ventilation, the fan should be used with the help of the

wet cooling pad. Such mode requires enough amount of wind, right air intake, airflow

direction, right pad area, water quality and temperature. The wind quantity can be

changed by changing the ventilation area, number of fans, the size of the ventilation

window and the steel ceiling.

The FRP blower of FAMSUN boasts characteristics such as strong anti-corrosion, aging

resistance, and low noise and can be used in livestock and poultry houses, greenhouses,

factories.

Zheng Fangfang

Page 27: MY VIEW Vol.8, No.3

Integrated Solution Provider 27

1. Bearing: the import brands area adopted for

better performance and reliability.

2. Motor bracket: The 4mm thick full aluminum

motor bracket offers a ridge shape for the fan, which

can eliminate vibration and prevent corrosion.

Compared with common thin stainless steel

brackets, the aluminum motor bracket is stronger,

lighter and sturdy and durable.

3. Glass fiber reinforced plastic (FRP) fan blade:

it is made from compound glass fiber. The high

precision dynamic balancing of the fan blade

ensures the stable and efficient operation. The

blades made from glass fiber reinforced plastic

blade is more corrosion-proof and thus have longer

service life.

4. Mirror stainless steel blade: Its performance

is proved by high precision dynamic balancing

tests. When operational, it does not collect dust, or

deform.

5. Mesh enclosure: The mesh enclosure is made of

quality steel and treated with surface coating.

6. PVC shutter: PVC windows shutters is light and

antioxidant, indeformable, free to open. It reduces

the amount of back-flowing air.

7. Bell mouth: the fan is designed according to the

hydromechanical principles so that the bell mouth

can work to change the direction of the airflow and

reduces flocculating airflow and increase the wind

quantity.

8. Wind scooper: The wind scooper can

be used in cold climates to prevent the air

blowing back into the pig houses or the

contaminated air being inhaled into the

houses. The wind scooper can be customized

by equipping itself with fiber reinforced

plastics to be highly corrosion resistant.

The environmental controller was imported

from Israel especially for Chinese customers.

The computer system for the environmental

control system adopts the global renowned

"rotem" series. The automatic environmental

controller, after being configured controls

the ventilation, aeration and warning of the

piggery. The core switches of the control box

are equipped with Schneider components,

the remaining with CHINT products; the

warning system is of a two-stage warning

one, with the alarm lamp being the LED red-

blue flashing light.

The environmental control system of

FAMSUN ensures sufficient supply of air

for the animals and eliminates the harmful

gas, dust or humid air. Living in a suitable

environment, the animals can enjoy higher

feed conversion rate, reducing the costs of

the farming and securing more profit.

Page 28: MY VIEW Vol.8, No.3

28 MY View Vol.8, No.3

In a modern crushing plant, there are often hundreds or thousands

of automatic control points. Upon the completion of a crushing

plant, all the sensors should be debugged one by one. The liquid

containers and channels in the extracting workshop should be cleaned;

tests should be conducted to test the pressure and locate possible

leakage. As for the evaporation system and the hydration degumming

and phospholipid drying system, oil is used to run necessary test

with the help of steam flashing and heating. Safety check should be

conducted before a solvent is added. With everything prepared and in

order, the solvent can be added.

1. No-load running

For equipment such as the pump, the inching method is advised in

case of possible damage done to the machine. Through pretreatment,

preimpregnation and the linkage trial run of the equipment in the meal

storehouse, the solidarity of the chain can be checked, reducing the

equipment failure rate and improving the efficiency of the equipment.

Start the exhaust fan and check for the connection resistance of all

the containers and channels. The breather valve of the underground

solvent tank should be equipped with a lightning rod which should

be one meter higher than the breather valve; so it is the same with the

emptying pipe of the exhaust fan if the pipe juts out on the roof.

2. Leak testing

The hydraulic test, air-tight test, air pressure test can be separately

done or combined; the equipment, channels, pipe fittings, the solvent

and solvent gas system, water-cycling system and steam system are to

be checked for any kind of leakage. Different testing methods can be

employed according to the challenges popping up in actual operations

and specific working substance.

For mixed oil evaporation system, solvent recovery system, condenser

system, circulating water system, the hydraulic test is preferable. Run

the pump in the system to check its pumpage and working condition.

The steam detecting method is used in the steam pipes, direct steam

nozzles, steam system and heat-exchange equipment to see if they are

jammed or leaking.

The pressure involved in hydraulic tests, air-tight tests and air pressure

tests should be 1.2 times as strong as that in normal operations.

An Introduction to the Adjustment Process of the Modern Crushing Plant

The linkage trial run in the extracting workshop

is conducted (with water instead of solvent) to

check and adjust the liquid level controller, the

automatic control of the linkage.

3. Dry-batch run adjustment

Dry batch run is used to resolve the matching

problems between different devices during the

delivery process, identify the load operation,

speed of operation; make sure the connection

drop, angle and direction, material level

indicating devices and linkage devices are right.

Check the internal structure of the extractor;

make sure the flexibility and level degree of

the caterpillar false bottom, chains, rotary

wheel, cell and the track; to check the strainer

of the rotary chains of the extractor to see if it

is balanced and flexible, if there is grating noise

and if the corresponding working current for

normal load operation is normal.

Check the direction steam nozzles and the

number of them, the number of the scrapers,

angle of inclination and the weld strength are

of the right level. Check the angle of inclination

of the scraper, the gap between the scraper and

the floor (20-25mm), tightness of the coupling.

Make sure the automatic flow controlling door

is flexible; the feed bar is working well and the

water level indicating device and coupling bar

are working.

Zuo Qing

Page 29: MY VIEW Vol.8, No.3

Integrated Solution Provider 29

4. The solvent and material adding process adjustment

Main procedures involved include: start the water pump of the cooling tower, get all the

condenser circulating water running. Establish a circulation in the mineral oil absorption

system. Start the vacuum pump and adjust the vacuum of the evaporation system to the

preset value. Firstly, pump the solvent into the water knockout drum and adjust the water

level to the separation interface. Start the boiling procedure when the water gets into the

boiler. After being heated in the solvent preheater, the solvent now gets into the extractor

where it is circulated with the help of a miscella circulating pump. During the process, the

temperature should rise up to 55-58 degree Celsius. Preheat DT, and open the indirect steam

valve. When the temperature rises to 100 degree Celsius, open the direct steam valve. The

soybean gets to conditioner circulation. Now change the temperature to about 90 degree

Celsius and the discharging temperature about 65 degree Celsius. Make sure the evaporation

system goes into circulation state first.

Next to come are steps for putting the solvent into the underground solvent tank, water

knockout drum of the workshop and putting the solvent and the materials into the extractor.

Then start the extractor, DT and DC.When the oil circulation in the system and the vacuum

degree meet the requirement of the parameters, run the level-one oil circulation, raising the

temperature to 125 degree Celsius.

Heat the solvent out of the solvent tank from the workshop till it hits 60 degree Celsius,

circulate it in the extractor and keep the temperature in the extractor around 55 degree

Celsius.

Page 30: MY VIEW Vol.8, No.3

30 MY View Vol.8, No.3

Open the spindle of DT, start the indirect

steam valve (0.05MPa) and heat DT. Open

the direct steam valve of DT and start the

steam jet ejector connected to VST. Pump

the solvent from the extractor into the rich

mixed oil filter at the top of the extractor and

when the oil flows back into the extractor,

pump the solvent into the DT catcher. Check

the reject valve and the bin level sensor. Boil

the solvent that comes from the catcher.

The waste water from the water knockout

drum flows through the channel wrapped

with heating jacket and gets to the boiler for

boiling. The solvent from boiler, after being

processed by the condenser, gets into the

water knockout drum.

When the solvent gets into the extractor,

the materials can be added with a 50% of

amount. The circulating solvent is sprayed

into the spray tank, comes into contact with

the blank, infiltrates through to miscella

leaking device and gets to the spray layer via

circulating pump, collecting a liquid level of

30mm.

The materials from the extractor is delivered

to DT. Make sure the height of each layer

of the materials is control led. The DT

equipment has eight layers, each of which

is equipped with paddles to make sure the

soy meal keeps moving during desolvation.

After going through the desolvation process

by the indirect steam, the soy meal now has

0.02% of solvent; the direct steam then is

sprayed into DT from the seventh layer.

Before the soy meal enters the first layer

of DT, make sure the valves of the steam

and the condensate in the front and back

are open and the steam trap valves are in

working condition.

When the soy meal moves to the crushing

unit, it is crushed, screened and crumbled.

This being done, the soy meal is delivered

to the packing workshop for packing or

warehousing.

Start the evaporation system according to the procedure

and establish a circulation system. When the fresh solvent

pump and the miscella pump are on, and the buffer tank of

the miscella in which there is some miscella spills over to the

extractor is full, the feeder pump of the first evaporator is

started. The miscella enters falling film evaporator.

Start the hydration degumming system in accordance

with the procedure: the crude oil is delivered to the water

degumming unit (the vacuum pump should be started

beforehand so that the degree of vacuum can remain within

10kPa). All the steam valves should be on. Start the centrifuge.

Start the steam condensate pump. Start the stirrer once the

oil gets into the hydration tank.

The raw phospholipid separated is collected into the

phospholipid tank and open the valves in front of and the

rear of the raw phospholipid pump when there is enough raw

phospholipid so that the raw phospholipid can be delivered

onward to other available phospholipid drying units.

After being heated, the degumming oil enters the vacuum

drying tank. The temperature of the drying oil is between

115-118 degrees Celsius. After the exchange of heat between

the degumming oil and the crude oil and feed oil, the

degumming oil then is cooled by the oil cooler to about 50

degrees Celsius and goes to tank field.

Conduct regular examinations to the solvent gas trapping circulatory system between the cooking pots and the solvent gas pipes.“ “

Page 31: MY VIEW Vol.8, No.3

Integrated Solution Provider 31

Next, start the phospholipid drying system:

start the vacuum system of the phospholipid

drying unit and make sure all the air valves

are closed. Proceed when the degree of

vacuum in the system reaches 9kPa.

When the phospholipid drying unit is

ready, start the feeding process. Keep the

temperature between 115-120 degrees

Celsius by adjusting the pressure of the

steam. The phospholipid will be circulated

in the system ti l l it meets the quality

requirements. After this, start another

phospholipid dryer. The dry phospholipid

the temperature of which is lowered to 60

degrees Celsius by the tempering water

enters phospholipid collecting tank. The

degree of vacuum and the discharging

temperature should be under control so that

the quality of phospholipid meets the norm.

5 . N e c e s s a r y w o r k d u r i n g n o r m a l

operation

Firstly, keep all the original records and keep

regular records of the temperatures of the

devices, flow rates, degrees of vacuum etc.

Check the solvent content of the soy meal

regularly to keep the loss of the solvent low

and the solvent content of the exhaust air.

Take samples of the soy meal and the crude

oil regularly. The analytic results will serve as

very important reference for the adjustment

of the operating parameters. Examine the

pumps to troubleshoot possible leakage. If

possible, fasten the leaking points when the

machine is on or off.

Th e wa s te wate r o f t h e co o k i n g p o t

should be discharged regularly to the oil

separation tank through the pipelines. The

emptying valve should be closed when the

liquidometer on site registers decreasing

reading and when there is water flowing out.

Conduct regular examinations to the solvent

gas trapping circulatory system between the

cooking pots and the solvent gas pipes.

Examine the problematic sight glass with

light and other lighting and switch off the

power before replacing the broken-down

lights.

The bearings and the stuffing box should be

smeared with lubricant in time according

to the operating requirements and the

maintenance manual.

The maintenance work of the devices and

equipment, such as the pumps, fans, crushing

rolls, extruders, gear boxes, motors and so

forth should be conducted according to the

manuals of the their suppliers.

It is advised not to begin the repairing work

when the equipment or devices are working.

It is better to keep all the problems on

record and repair the equipment when the

operation is over.

Page 32: MY VIEW Vol.8, No.3

32 MY View Vol.8, No.3

Focus on China

Large Chinese Pig Companies to Expand Business

Large pig companies in China are about to embark on their

expansion of business against a background featuring challenges

of sustainable development of human and ecological systems,

the conservation of water resources, the recycling of piggery waste, the

introduction of professionals in pig industry, technological innovation

and brand building.

After several years' scale development, the pig industry in China has

come to the crunch. The Ministry of Agriculture of the People's Republic

of China has been promoting the construction of the standardized

demonstration farms for five years, and now the focus has been switched

to household farms. In the meantime, however, with the big picture in

mind, some of the large companies, such as CP Group, COFCO, WENS

Group etc. are investing enormous amounts of money into the whole

industry chain projects.

With the promulgation of regulations on the treatment of piggery

waste, some of the small farms are forced to close down. Given such a

background, how will these industry participants—the demonstration

farms, household farms, farms about to go out of business and those

farms invested by those giant companies —will fare in the future and

what challenges will they face?

is still a long way to go before the

realization of the objective by Ministry of

Agriculture that by 2015, the percentage

of farms with a pig population of over 500

shall reach 50%.

There

Evan

Page 33: MY VIEW Vol.8, No.3

Integrated Solution Provider 33

Large-scale farming, a long way to go

According to the results of National Bureau

of Statistics of China, in the past 30 years,

the annual pig population has grown from

238 million in 1985 to 735 million in 2014,

climbing over 300%, which means that the

number has doubled in every ten years.

There is no doubt that the national scale

of pig production has been in the leading

position in the world for many years, but

up to now the concrete data on China's

large-scale pig production have yet to be

published.

T h e d a t a r e l e a s e d b y C h i n a A n i m a l

Agriculture Association show that compared

with 2012, the farms/ households with a

pig population of over 500 accounted for

40.8%, in 2013, up 2.3%. Provided with such

numbers, it seems that there is still a long

way to go before the realization of the

objective by Ministry of Agriculture that by

2015, the percentage of farms with a pig

population of over 500 shall reach 50%.

To put it into perspective, large-scale pig

breeding has not offered satisfactory results,

which can be corroborated by the following

numbers:

• So far the number of pig farms in China has

amounted up to 67.137 million, 50% of which

are those with a scale of over 100, while in the

United States the total number of pig farms

is 70.1 thousand, 60% of which have a pig

population of over 5000.

• In 2010, the percentage of farms with an

annual output of over 500 was 35%; farms

with an output of 50 thousand pigs reached

around one percent, while in the EU in the

same year, among the 27 member countries

the number of pig farms with an output of

over 1000 pigs ran up to 73.3% of the total:

95.6% for Denmark, 90.5% for Italy with the

Netherlands, The UK, Spain and Portugal each

having a percentage above 80%.

The layout of China’s large pig companies

Ta b l e 1 l i s t s t h e to p te n C h i n e s e p i g

companies that have been investing heavily in

the industry, three of them being husbandry

giants, four slaughtering companies and

three listed pig farming companies. Despite

the incomprehensiveness of the information

Page 34: MY VIEW Vol.8, No.3

34 MY View Vol.8, No.3

released about the actual progress of these ten enterprises by the end of 2014, it can at least be roughly

figured out the foothold these companies have made in pig industry.

According to table 1, in 2014 WENS Group was expected to produce 12 million pigs, accounting 1.6% of

the national pig production whereas COFCO and CP Group fell short of such an output; Shuanghui Group

reached an output of 17 million pigs, accounting for around 2.3% of the national pig production. In addition,

the production of True In Group, Muyuan Food Co., Ltd and Zhengbang Group was 0.29%, 0.25%, 0.20%

respectively.

From Table 1, a rough guess can be made that in about five years, there would be at leat four pig companies

falling into the ten-million-production category and four others into ones with twenty million pigs.

Production(slaughter capacity)

2012 2013 2014 Prediction

813.9 1013 around1200 3000/2020

150 500/2015; 2000/ five years

1000/five years; 2000/ ten years

(1141) (1331) 33(1700) 4000/2024

(1060) (5565/Capacity)

(2000)

400(1000)

160 169.5 around210 500/2015

91.8 130 185 500/2017

84.9 120 around150 1000/2017

nine northern provinces 21/Hunan

Province, Hubei Province and

Guangdong Province 50

Companies

WENS Group

COFCO

CP Group

Henan Shuanghui Investment &

Development Co., Ltd.

Yurun Group

Jinluo Group

Topin Group

Truein Group

Muyuan Co., Ltd.

Zhengbang Group

Table 1 The expansion of China’s top ten pig companies

Source: from official websites of the related companies and media and integrated by Pig international China, for reference only

Page 35: MY VIEW Vol.8, No.3

Integrated Solution Provider 35

By 2020, the pig industry in China may witness the rise of top

four pig farming companies and top four pig slaughtering

companies. The companies with annual output of 50 million

and those with an annual slaughter of 80 million account 6%

and 10% of national pig production respectively. According

to the related data, the top four pork processing companies in

the United States account for more than 50% of the national

processing capacity, while the top three companies in the

Netherlands reach 74% and the largest pork processing

companies in Denmark account for 80% of the national

capacity.

Since the implementation of the Ordinances of Livestock

Scale Breeding Pollution Prevention in January 2014, many

provinces in China have carried out measures to reform or

close some pig farms. Take Zhejiang Province for example, the

province planned to close 50 thousand pig farms and reduce

the population of pigs by 4.2 million in 2014, accounting about

30% of Zhejiang Province’s year-end pig population in 2012.

If other regions in China would follow with such a percentage,

the total pig population in China would be reduced by 130

million. If there were 100 head of pigs in every household,

there would be 1.3 million pig farms, or 4% of the total farms/

households going out of business.

Table 2 The layout of the top three pig companies

Gilin

Yongzhou, Hunan

Ganzhou, Jiangxi

Chunhua, Shaanxi

Jianli, Hubei

Pingchang, Sichuan

80

40

27.5

15

9.5

7.5

500

500

200

106

70

50

WENS Group

company+household

company+base

+household

feed production

breed cultivation

breeders

pig breeding

technical service

products marketing

Companies regional investments

in recent years

investment funds

billion yuan

breeding/

slaughter scale

head

culture model the layout of the

w h o l e i n d u s t r y

chain

But actual numbers will be bigger. Among all the pig farms

in China, there are 40% of them whose pig population falls

to into the below-one-hundred category, therefore, in a long

time to come, there will be more farms to go out of business.

As the household farmers are moving out, the large animal

husbandry companies are moving in, with large amounts of

investment to expand the pig breeding chain. The expansion

mainly concentrates in provinces as follows: Jilin, Hubei,

Henan, Jiangsu, Sichuan, Guangxi, Guizhou, Shaanxi, Gansu,

and Inner Mongolia.

The majority of the projects will be built in stages, their

investment plans having been established between 2012 and

2014. According to table 1, in the next five years, WENS Group,

COFCO, CP Group and Zhengbang Group will construct pig

farms with a capacity of 15 million, 18 million, 10 million and

10 million head respectively, bringing the total investment

fund above 50 billion yuan and another 53 million head of

pigs to be added. If every single farm constructed has a pig

population of 500 head, it means that there will be about 100

thousand households joining in.

Page 36: MY VIEW Vol.8, No.3

36 MY View Vol.8, No.3

Unlike the picture in China, the whole pig industry chain

in Denmark consists of more than a few companies. For

example, in Denmark, a few pig farms can invest in one

feed facility or an animal innocuous treatment center; a

few fattening farms can invest in one slaughter house

and a few slaughter houses can invest in one point-of-

sale terminal. In this case, the whole industry chain can

be integrated well and there are professionals in charge

of each section. In China, however, both the upstream

chain and the downstream chain are supervised by one

company, leaving little room for professionalism which in

turn poses greater danger for pig production.

Admittedly, high-profile investment in the whole

industry chain by large pig companies will benefit the

scale development of pig industry, delivering industrial

returns. But one issue remains to be solved: individual

farmers should at least be upgraded to family-run farms

to facilitate the layout of the large pig companies, because

those family-run pig farms ensure more effective industrial

production process and meticulous farming management.

In the United States, farming is dominated by family

farms which possess the advantage of scale operation,

professionalism and diverse organization forms. As for

Hubei

Tianjin

Dongtai, Jiangsu

Songyuan, Jilin

Chifeng, Inner Mongolia

Guangyuan, Sichuan

97

40

50

40

25

20

1000

200

200

200

150

100

COFCOantonomous reproduciton

and raising

company+base+

household

breeder breeding

pig breeding

feed production

p i g s l a u g h t e r a n d

processing

cold chain logistics

product distribution and

delivery

Jingtai, Gansu

Yunlin, Shaanxi

Zhoukou, Henan

Xiangyang, Hubei

Xuanwu, Guangxi

Jinsha, Guizhou

14.2

48

46

12

36

100 (100)

100

(100)

100

50

breeder breeding farm with 2400 pigs

CP Groupgovernment+company+bank

+rural cooperative

feed production

breeder

reproduction

breeders

pig breeding

technical service

pig slaughter and processing

professionalism, in countries with advanced pig industries,

such as Denmark, pig farm staff should undergo three to

five years' professional training before they can start their

work in pig industry.

Challenges of a sustainable ecosystem, the conservation

of water resources, the recycling of piggery waste on

the farms, the welfare of the pigs, the reduction of

antibiotics, the joint breeding mode between China and

other countries supposed to pull China's pig industry out

of the vicious cycle of "introduction—reproduction—

degeneration—reintroduction”, biosecurity and the

improvement of veterinary systems etc. will remain as high

priorities on the agenda of not only the government but

also the large pig companies which plan to follow a path for

expansion. But this is not the end of the story. The new pig

farms should also accommodate the absorptive capacity

of the shrinking land; pig farms also need strategic plans

for the introduction and development of cutting-edge

recycling technology and equipment and they also need

to train the staff to ensure better production.

Page 37: MY VIEW Vol.8, No.3

Integrated Solution Provider 37

The Study Tour of Santeh Corp. to FAMSUN Reached a

Successful Conclusion

Special

One of the regular customer of FAMSUN—Santeh Corp.—visited FAMSUN for the study tour organized by the Business

School of FAMSUN in partnership with related departments. The Santeh group which consisted of 8 people stayed from April

22—23 for various training.

Starting from 1996, Santeh Corp. has been enjoying the partnership with FAMSUN. In 2009, Santeh Corp. purchased from

FAMSUN a MY120X2 Twin-Screw Extruder system, a 130D Ultra-Fine Pulverizer system; in 2014, a MY215 Extruder system as

well as a rough pulverizer, and a paddle ribbon mixer. With an averaged annual purchase worth around US$ 200 thousand,

Santeh Corp. plans to renew the cooperation with FAMSUN.

To furnish the customer with satisfactory service, everything ranging from inviting lecturers, preparing and evaluating and

printing teaching materials, site interpretation were all taken into careful consideration.

Page 38: MY VIEW Vol.8, No.3

38 MY View Vol.8, No.3

On the morning April 22, Mr. Liu Changquan from the service

center gave a lecture on the issues arising during production. All

the question concerning the use of the extruder and ultra-fine

pulverizer were answered by Mr. Liu. As requested by the visiting

group, Wang Lei of Pet Food Engineering Company, Diao Guoyu

of engineering technology center, Gao Jian of Hybrid system

Group of the Research Institute and Li Lusheng of FAMSUN Weimei

Automation Control Co., Ltd. shared respectively details about the

technological process for pet feed, aquatic products, knowledge of

vacuum spraying and the automatic batching system.

The next day, Maliang of the Extruding System Group of the

Research Institute, Zhaobo of the Crumbling System Group and

Li Qingkai of the Pelleting System Group provided respectively

introductions of the extruding technologies for aquatic products

and their application, SWFL130G Vertical Ultra-Fine Pulverizer and

pellet mill for shrimp feed.

Page 39: MY VIEW Vol.8, No.3

Integrated Solution Provider 39

Training and Practice Combined to Help

FPD Team

In order to enhance the timeliness rate and accuracy rate of the engineering design delivery, reduce the cost and the

quality losses of project, and encourage the standardization and normalization of design, Business College in alliance

with the Engineering Center of Feed engineering product line in March. They trained feed engineering designers

from platform companies in the form of “combined raining and practice”, and designed the “two days and one night”

special training plan for them.

This training activity was carried on between 27th March and 29th April (lasted one month), it was a tour aimed at all

our platform companies. The activity invited feed engineering design and feed product design lecturers, explained

“feed design standard/norms lecture”, “key platform design problems rectification”, “introduction to excellent

engineering technology”, “comments and guidance about in hand platform design”, and so on. The lecture forms

includes face-to-face teaching, example analysis, exchanges and discussions, and field practice.

Page 40: MY VIEW Vol.8, No.3

40 MY View Vol.8, No.3

With two days and one night training, technology designers understand

the necessity of standard feed design application deeply through

the lecture and practice. They also learned a lot about the newest

technological process and theory.

The third, fourth, fifth and sixth station of this activity will be at Shenyang

Company, Qingdao Company, Panyu Company, and Wuhan Company. Also,

the “A lecture a month” of engineering technology center and “a lecture a

week” of platform companies will continue.

Page 41: MY VIEW Vol.8, No.3

Integrated Solution Provider 41

International Poultry Expo 2015 Sep.10-12 Lahore, PakistanLivestock Asia 2015 Expo & Forum Sep.21-23 Lumpur, Malaysia

Saudi Agriculture Oct.11-14 Riyadh, Saudi Arabia

Poultry India 2015 Nov.25-27 Hyderabad, India

UPCOMING EVENTS

Sep.

Nov.

Oct.

Southeast AsiaMr. Elvis [email protected]

Middle EastMr. Steven [email protected]

AmericasMr. David [email protected]

AfricaMr. Yi [email protected]

President of International BusinessMr. Liu [email protected]

Asia-PacificMr. Allan [email protected]

EuropeMr. Tongbin [email protected]

Key Accounts Dept.Mr. Arron [email protected]

South AsiaMr. Bob [email protected]

Page 42: MY VIEW Vol.8, No.3

42 MY View Vol.8, No.3

AFRICA

EG CairoAZ AlgiersZA DurbanS D KhartumnMA CasablancaNG LagosKE NairobiET Addis Ababa

LATIN AMERICA

BR Sao Paulo EC GuayaquilCO MedellinAR RosarioVE Valencia

NORTH AMERICA

MX Guadalajara

Think globally, act locally.

Since the execution of Go-Global in 1997, FAMSUN

has delivered its products and solutions to more than

120 countries around the world. A solid network of 50+

local sales and service offices, 400+ overseas employees

and 20+ local partnership companies ensures that our global reach extends around the world and provides a neighborhood

link to our customers.

In 2015, we will continue to develop local and global markets

in ways that:

To learn and well know local culture and demand;

To bring leading technologies and solutions;

To improve food and nutrition security;

To share resources what we have;

To be a reliable partner of local industry;

To provide training and promote Youth Employment;

To take up social responsibility.

Page 43: MY VIEW Vol.8, No.3

Integrated Solution Provider 43

R&D Institute

Office and service sites

Production Bases

ASIA

IN Hyderabad Dehli Banglore KolkataID JakartaTH BangkokVN HCMCPH ManilaBD DhakaKZ Almuty

Middle East

SA RiyadhSY HomsIR TeheranTUR Izmir

EUROPE

RU Moscow Krasnodar LipetskPL Warszawa RO Bucharest

UZ TashkentKR SeoulPAK LahoreMAL Kuala LumpurMMR Yangon AU Sydney

SRB BelgradeUA KievDK EsbjergDE Leverkusen

Global Presence

Page 44: MY VIEW Vol.8, No.3

44 MY View Vol.8, No.3

Muyang HoldingsNo.1 Huasheng Road, Yangzhou, Jiangsu, China 225127T:+86-514-87848880 F:+86-514-87848686E-mail:[email protected]://www.muyang.com