ADM expanding feed footprint in China

By Jane Byrne contact

- Last updated on GMT

© istock/shih-wei
© istock/shih-wei
Work is about to get underway on ADM’s fifth feed facility in China.

It is to build a feed-premix facility in Xiangtan, in Hunan Province, central China, which will come on stream in early 2019.

It will be strategically located to supply products to customers in three provinces in central China: Hunan, Hubei and Guangxi.

The US agribusiness giant is also expanding its aquaculture feed production output at its existing Nanjing complex in Jiangsu Province, eastern China through adding four new lines.

The Xiangtan feed-premix facility will allow it to meet increased demand in the central part of the country - it is set to have annual capacity of 120,000 metric tons of premix, concentrate, animal and fish complete feeds.

The aquaculture lines in Nanjing, also due to be completed in two years’ time, will be capable of producing 50,000 metric tons of extruded and pelleted feeds during the six-month aquaculture season that runs from April to September.  

ADM already operates premix facilities in Dalian and Tianjin in the northern part of China, as well as the Nanjing facility in eastern China.

The company is finishing construction on a new feed plant in Zhangzhou, in southern China, which, it said, will be operational by this summer.

Research tie-ups

ADM began operations in China in the mid-1990s, when the company acquired the feed premix plant in Dalian targeting the poultry, livestock and aqua feed sectors.  

Six year ago saw it also begin research alliances in the Asian powerhouse.

In 2011, the company launched the ADM Institute for the Prevention of Postharvest Loss at the University of Illinois, which collaborated with a research center attached to China’s Ministry of Agriculture to conduct a wheat postharvest loss survey and investigation in Henan province in 2014.

In 2013 to 2014, ADM said it liaised with the China Agricultural University in an attempt to help large dairy farms, where feed-grain costs represent about three-quarters of the total cost of operations, replace some of the corn traditionally used in cattle rations with specially treated corn stover - the stalks, cobs and leaves left on farmers’ fields after the harvest.

“To date, large scale feeding trials at two commercial dairy farms have achieved annual cost savings equivalent to approximately US $113 (RMB 700) per cow while maintaining milk yield and quality,”​ it reported.

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