LDC grows presence in Chinese alternative feed market with new plant

Agricultural business major Louis Dreyfus Company (LDC) will kickstart the construction of an animal feed plant in China, jointly owned with one of the largest Chinese feed makers Guangdong Haid Group Co Ltd, the company said on Wednesday. 

The joint venture – named Tianjin Rongchuan Feed Co. Ltd – will be located in Tianjin in northern China and is expected to start operations by the middle of next year, LDC said in a statement.

The plant will be used to produce high-end aquatic feed and fermented soymeal. It will have an annual production capacity of 300,000 mt, LDC added.

“As demand for protein rises in a number of markets and consumer demand for healthy meat alternatives grows in China, aquaculture represents an efficient and sustainable source of protein and our move into aqua feeds is consistent with that vision,” said James Zhou, LDC’s head of North Asia.

The joint venture was formed between the two companies in December last year.

High-end aquatic feed is normally used to feed premium fish sold on a premium in the market, a China-based internal source at LDC told Agricensus.

Fermented soymeal is used as a feedstock for livestock feed, including feed for pigs.

China's pig population has been hit hard by ongoing African swine fever (ASF) epidemics since August last year.

China has reported more than 120 outbreaks of ASF across all regions in the country since then and has culled at least 1 million pigs.

“The strategic goal of this joint venture was established when the factor of ASF was not incorporated,” the same source said, adding that the added production capacity from the plant next year does not necessarily reflect the company’s view on China’s feed demand.