2016 NRA Annual Convention

Amelia Island, FL

Oct 21, 2016

The situation of Chinese feed industry in 2015

Increase of GDP: 6.9%- lowest in the past 2 decades

General feed production: 200 million MT

Aquafeed production: 20 million MT

Swine industry: 54.9 million MT pork production and 83.5 million

MT of swine feed production

Fish culture: overproduced, low profitability. Price of various fishes

dropped to the lowest in the past two years

Shrimp culture: profitable but disease risk is high. Closed system

culture in northern China become popular

Fur bearing industry is hopelessly low

Fish meal import was 1.02 million MT in 2015, similar to 2014

Pet food industry growing to approximately 900,000 MT. 6%

Chinese family own pets. In major cities, 11-15% family own pets.

The situation of China Soap industry and Demand for Oils and Fats

Soap industry has been stable in past years by

producing approximately 1 million MT of soap

China imported 90113, 62677 and 3991 MT of tallow

from New Zealand, Australia and Uruguay

China imported 5.8 million MT palm oil from Malaysia

and Indonesia in 2015

China imported 2.6 million MT palm oil from

Malaysian and Indonesia in the first 8 months of

2016

China

1. Tallow Update

First shipment of US tallow arrived and was cleared

from Chinese border.

More efforts needed for registrations of bovine

renderers, importers, infrastructure for storage and

transportation and final users such as soapers

China

2. Non-ruminant Protein Update

US poultry meal and feather meal remain the only

poultry products exempted from ban over poultry

products produced in countries with HPAI

occurrences.

Poultry meal produced in EU, Australia and Brazil is

banned.

Chinese Import of Terrestrial Animal Proteins

Year Australia Uruguay USA NZ Total

2007 5471 6478 12363 392 24704

2008 35226 27527 1441 1056 65250

2009 27932 49452 --- --- ---

2010 71888 49353 8751 --- 129992

2011 38392 38733 11117 4375 92617

2012 10877 34641 23421 7958 76896

2013 12723 33916 54300 13940 114879

2014 18499 29742 63155 19782 131178

2015 38020 41087 80610 19032 178749

2016-

8mon

10944 37859 95430 5105 149338

China Feed Online 2016

China

2. Non-ruminant Protein Update

Current agreement between US and China on non-

ruminant product trade expired in Feb. 2

Audit was scheduled in Aug. 2016, but delayed

because of visa issue, rescheduled between Nov.

12 to 23.

Audit will focus on new facilities approved after 2011

and facilities to be approved for export

Communication on ruminant/mixed species MBM

Expectation

China

3. Adulterations in fishmeal and poultry meal

Microscopic training in China (2016), Indonesia (2016) and Vietnam (2015)

Publication planned for 2017

Amino acid profile comparison

Development of molecular biological tools for adulteration investigation

China

4. Market access of

(a) bovine plasma,

(b) blood,

(c) MBM,

(d) edible tallow

(e) gelbones

Taiwan ROC

Ban over ingredients from meat, bone, blood of all species of terrestrial animals in countries with BSE occurrences

Feather meal is allowed

Tallow is allowed

US porcine plasma exempted from the ban

Bilateral negotiation between US and Taiwan ROC on market access of non-ruminant proteins is pending

Taiwan ROC

Democratic Progressive Party won presidential election in 2015 and came to power

Animal Feed Production: ~5.5 million MT

Aquafeed Production: 500,000 million MT

Bureau of Animal Plant Health Inspection Quarantine (BAPHIQ)

Vietnam Total feed production 15.8

million MT

Total aquafeed production 3. 2 million MT

Expansion of Chinese aquafeed industry in Vietnam is a driving force for US poultry meal

Import volume: 34553 MT poultry meal in 2015

EU issue

Indonesia

Indonesia

90.3

108.5

8.5

24

0

20

40

60

80

100

120

Red meat Chicken Turkey

Meat Consumption Per Capta (lb/year)

Indonesia

IndonesiaAquafeed Production (thousand

ton)

Indonesia

Stable market-extremely important market

More beef rendering facilities approved for export

Porcine issue

“Vegetarian Chicken”-Will it affect Indonesian market for MBM?

Asian Market 2017 Market Access Projects

Determination of functional amino acids and peptides in animal proteins and plant proteins

Promotion of healthy, natural diets for livestock and aquaculture industry

Education on ingredient quality control and prevention of adulteration