Analysis On China's Feed Grain Market

Along with the rapid increase of China economic, the improvement of people's living condition and the population number expanding, the demand of animal products is increase. These changes require much more feed grain to cope with.As a major feed grain, the supply of corn is surplus by structure. The shortage of protein feed is the mostly problem to hold up the development of feed industry in China. The supply of feed grain is imbalance among different regions, and then the transport cost from north area to south area is very high.The supply of feed grain in domestic market will be affected by adjustment of crops plant structure, the potential of feed grain production increase, the feed grain price, the feed grain quality, and so on. After joining the WTO, we can import feed grain to relieve the bug of feed grain variety, and solve the lacking phase of protein feed. But the import of feed grain will impact the domestic feed grain production.The demand of feed grain is based on the animal production demand, so the change of animal production demand will affect the feed grain demand in China. Different animal raising system has different feed grain conversion ratio, and the usage of feed grain in different raising system is also different. The development and change of animal raising pattern will influence the feed grain demand.There is still no absolutely feed grain circulating system, but the reform of grain circulating system accelerated the development of feed industry. China should promote the integration of feed market.After joining WTO, China cancel the subsidy of corn export and practise tariff-quota system. The domestic feed grain production will be impacted by quality, quantity and price. China should adopt measures to reply to these new problems.