Pork consumption in China increases, causing animal feed businesses to flourish. (Photo : Getty Images)
A report from the Bloomberg Billionaires Index revealed that the growing demand for meat in China has been causing an immense financial growth for animal feed providers.
Twins Group Co.'s CEO Bao Hongxing has a current net worth of $1.8 billion, while Sichuan Tequ Investment Co.'s founder Chen Yuxin has a net worth of more than $1 billion.
China Daily reported that the aforementioned businessmen experience an increase in sales as more Chinese consumers look for healthier livestock. Their businesses provide chicken, beef, and more with higher quality.
The demand for healthier livestock is also driven by the shift in the nation's dependence on cheaper staple foods that are low in protein, which include soybeans, corn and rice.
Yet another reason for the growing need for more meat is the fact that China has the most number of pork consumers in the world, according to a report by the Ministry of Agriculture. To compensate for this, China has turned into the largest animal feed maker in the world. About 200 million tons of animal feed were produced by 6,000 mills in the country.
"Fewer than 20 percent of China's livestock farming companies make their own feed and are self-sufficient, while 80 to 90 percent of them have to buy feed from feed companies," said agriculture analyst Wang Qian of Guotai Junan Securities Co.
Twins Group, which was known as Golden Apple Group before it changed its name in 2007, is currently the biggest pig feed producer in the country. In 2015, the company generated revenue of 38.6 billion yuan ($5.94 billion) as a result of the 50-percent annual growth rate which started in 2014.
While the two business giants are enjoying the increase in meat demand, China Daily reported that smaller animal feed providers have been suffering since 2010. Most of these small companies are family-owned.
