In order to optimize feed formulation and reduce costs, listed companies and group enterprises should focus more on the efficient use of small raw materials, main ingredients, and quality control. Some raw material suppliers could consider processing their own materials, which is a highly effective technical approach to managing formula costs, especially when feed ingredient prices are high. For instance, the current price of soybeans is 4,700 yuan per ton, while soybean oil is at 8,500 yuan per ton, and soybean meal is 4,200 yuan per ton. Why then would we still prefer using soybean meal combined with soybean oil instead of directly using whole soybeans? Especially in extruded feed, soybeans can be crushed through an 80-mesh sieve, extruded, and processed, effectively eliminating anti-nutritional factors. This makes it safe for farmed fish without any issues related to these factors. Therefore, soybeans can be used directly as a raw material in extruded feed.
The price of fishmeal has been unusually high this year, so feed formulas should include more meat powder, blood cell powder, and oils. Domestic meat powder can be processed by feed companies themselves, using simple equipment and processes that mainly involve collecting raw materials. Self-processed meat powder can be produced into high-quality meat powder, whereas commercially available meat powder is typically second-pressed and subjected to high-temperature treatment, reducing protein utilization and increasing the risk of oxidation.
With oil prices relatively low this year, increasing the amount of oil in feed is a practical choice. Oils such as rapeseed, sunflower, meat powder, duck oil, and chicken oil are easily accessible compared to protein sources. This is one of the key technical strategies to counter the abnormal rise in fishmeal prices. The direct consequences of this price surge are twofold: first, high-end fishmeal from Peru and Chile may gradually lose their foothold in the Chinese market, allowing domestic fishmeal to take over. Domestic producers will likely shift toward better processing techniques and quality control, aiming to develop high-end fishmeal. More importantly, this presents a great opportunity to improve fishmeal quality and stabilize the Chinese market. Second, feed companies have learned how to replace fishmeal with other animal proteins. Many already have the technical solutions to maintain aquaculture performance without significant losses. As more companies adopt these methods, the era of fishmeal profiteering is coming to an end. Given China's consumption of over 50% of global fishmeal, particularly in aquafeeds, the country holds significant influence over the pricing of major animal-based raw materials. Controlling the production and use of high-end fishmeal is crucial for listed companies, not just for small and medium-sized feed businesses. Relying on high sales prices is a short-term strategy that doesn’t benefit either the company or the farmers. Instead, large enterprises should focus on industrial expansion and market pricing mechanisms to better control feed costs and increase profits. Moreover, this approach can help establish stronger influence in international markets.
When it comes to feed formulations, sticking to traditional patterns like relying heavily on fishmeal and soybean meal might be challenging this year. The pricing power of soybean meal is not entirely in our hands. In the U.S., the futures market often manipulates stories to drive up soybean meal prices, similar to the "American cold medicine" phenomenon. This year, there’s an unusual situation where the price of soybean meal + soybean oil is much higher than that of soybeans alone, making it difficult to lower feed costs. Additionally, excessive use of soybean meal can have negative side effects. High levels of soybean meal in feed may reduce its effectiveness and even damage the intestinal mucosa. Soybeans contain peptides that bind to bile acids, which are essential for digestion. In aquatic animals, bile acids are vital for liver and intestinal health. Their loss can lead to intestinal damage, so reducing soybean meal usage is necessary. Research is needed to develop high-yield technical solutions for using soybean meal in shrimp and marine fish feeds. Currently, many feed formulas rely on high fishmeal and soybean meal combinations due to high prices. However, some marine fish like golden carp and sea bream are now priced lower than grass carp, a trend worth exploring. Feed technology programs must also investigate diversified feed material schemes to control feed costs, similar to freshwater fish feed, and test these approaches thoroughly.
Understanding how the market price of farmed fish is determined involves analyzing three key pricing mechanisms. First, the pricing of feed ingredients is influenced not only by supply and demand but also by capital market interventions and foreign pricing power, as seen with fishmeal, soybean meal, and corn. This leads to unreasonable prices that feed companies must bear. Second, feed pricing is largely based on cost, meaning that increased input costs are passed on to farmers. Third, farmed fish products are priced according to market supply and demand, not cost, leading to situations where farmers sell fish at a loss simply because they have to. To address this, feed companies should provide farmers with accurate information and guide their production decisions. For example, grass carp, the most widely farmed species, faces challenges when all farmers concentrate on selling at the same time, causing poor prices. By guiding farmers to ensure consistent monthly fish availability, especially during high-price periods, feed companies can help improve profitability. If farmers know they can sell fish every month, they are more likely to achieve better returns.
Learning from Guangdong’s model, grass carp can be sold monthly, with new species introduced regularly. If this isn't possible elsewhere, forming cooperatives and managing fry timing can help. Fry from Guangdong arrive 20 days earlier than those from Jiangsu, while northern fry come 20 days later. This time difference allows for continuous fish availability, maximizing efficiency and profitability.
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