Animal Husbandry Industry Solutions



Animal Husbandry Industry Solutions


With the arrival of the Internet+ era, competitive factors of the animal husbandry industry have undergone qualitative changes. Over the years, elements of competitive advantage consisting of cost, size, feed weight and raw material have been accumulated. However, while enterprises are currently under the reshaping power of a new competitive era, high-frequency words such as efficient market, precise user, flow, big data and value creation have been mentioned.

The growth logic of breeding enterprises has also changed. In the traditional sense, the growth of enterprises focuses on the scale of enterprises which is referred to by sales amount, number of employees and other key words. However, under the internet+ era, the growth of animal husbandry industry is expressed as the ability for enterprises to integrate resources which is a non-continuous explosive growth.
All in all, the industry competitive factors and the enterprises’ growth models have changed, bringing great challenges to enterprises.




Enterprises are extending from a single structure to the entire industry chain

In 2015, feed enterprises have speeded up their breeding, farming and food sections. Chia Tai food and COFCO have accelerated their pig breeding projects and expanded food sections as well. Tangrenshen Group and Tianbang Food have occupied Pig Breeding fields. New Hope Group tried to take the entire industry chain and expand towards the Australian market. Hefeng livestock breeding invested heavily in broiler chicken breeding projects while Cargill started raising broiler chickens in China……


The intensive process of industry scale is speeding up

Ma Youxiang, secretary of the animal husbandry industry from the Ministry of Agriculture in China, revealed that the number of national feed manufacturers declined from 7,000 in 2014 to about 6,000 in 2015. In the year of 2012 and 2013, the number of feed enterprises were 10858, 10113, respectively. Overall, the domestic small and medium feed enterprises have gradually been replaced and merged. The intensification of the feed industry is gradually growing and market competitions are increasingly getting fiercer.


The whole industry is tremendously impacted by the "Supply Side"

In the year of 2015, the raw material prices of corn, soybean meal and other bulk feed have continued to fall caused by the influence of supply increase in the international and domestic market. Among them, the domestic corn prices fell by 20% compared with last year and soybean meal prices were close to the low point of the 2008 economic crisis. The price war of the international and domestic feed market was staged in turn. As a result, breeders benefited from a decline once reached 100-200 yuan / ton.


Animal husbandry enterprises are ‘touching the internet’

Pig e network has become an industry benchmark platform of pig breeding and trading information.
The ‘3 Networks 1 Stop’ of Wisdom DBN, (Dabeinong 智慧大北农), the ‘Fuda plan’ of New Hope(新希望), the ‘Bangfubao’ terminal of Wisdom Tianbang(智慧天邦) …
By 2015, the "Internet +" has become a hot topic among global feed and breeding enterprises. DBN(大北农), Zhengbang(正邦), New Hope(新希望), Anyou(安佑) and other feed enterprises invested heavily in order to seize the momentum on the online market. However, this blind ‘touching of internet’ did not result in significant benefit causing lots of companies become sacrifices. The main reason was that enterprises paid more attention to externality instead of internality- internal innovation lagged behind as well as the reform of operation safeguard model and precise services based on intelligent agriculture only remained as slogans.



The Company + farmer model has become the standard in the current phase

As organizers and managers of the agricultural industrialization, companies consolidate the various sectors in the Breeding Industry Chain such as seed production, feed production, feeding management, disease prevention and product sales etc.. Companies and farmers (or family farms) cooperate and complete the task together.



On the one hand, this industry chain management connects various sections of aquaculture upstream and downstream efficiently reducing intermediary trades and realizing self-support and perfection of breeding industry chain management. In addition, it reduces intermediary transaction costs and improves process control efficiency. On the other hand, the internal mutual cooperation of the industry chain forms an effective independent supervisory system, achieving efficient management of industry chain processes.


Challenges enterprises are facing


1. With the expansion of market competition scale, how to complete the transition successfully, and remain competitive in the global competition?

2. How to further enhance the ability of the animal husbandry enterprise market to prevent risks?

3. How to reduce the cost of every sector in enterprises and increase its efficiency?

4. How to change the situation where the adjustment space of product structures is compressed?

5. With the increased restrictions on land and environmental resources, how to promote the standardized scale cultivation?

6. Under the background of the integration of animal husbandry industry, how to manage the internal enterprise business processes better?

7. How to use more scientific methods to maintain a reasonable herd structure?

8. With the increased quality and safety risks, how to monitor from the original source?








Solution Value


The deep integration across regions and industries

To establish the integrated platform for equipment, vaccine, technology, financial services of the animal husbandry industry. To build the management platform and the integrated service platform for feed, breeding, marketing, finance and online retailers, creating a deep integration of multilateral resources in the industry chain and reshaping competitive advantage.


Business model innovation

To achieve the overall idea of "high polymerization, high separation" for the animal husbandry industry in terms of production, marketing and service functions. To reconstruct the combination methods of orders, tickets, goods, money, services, and other business elements. To actively attempt using cooperatives, breed households/farmers integrated service platform and other new business models.


Group operation

To establish the overall structure of group management and operation. To achieve the procurement resource shared service, market transaction resource shared service, financial shared service, IT shared service, HR contribution service, and to develop group competitive advantage.


Order-driven efficacy transformation

The order-driven transformation of enterprise procurement and production model solves the accurate prediction problem for feed and breeding elements of the procurement and production planning.


Achieve the "careful budgeting & planning" and fine control of cost

To achieve the integration of finance and business under the structure of Group financial management, and control and assessment the cost through the full multi-angle, multi- mode during the whole period.


Optimize the product / breeding structure of enterprise clients

To optimize the feed product and breeding structures for enterprise clients by collections and analyzing big data in order to maximize production efficiency for clients.


Full-day management of intelligent breeding

To conduct all-day information collections and model calculations for livestock and poultry. To provide intelligent and scientific guidance for breeding and to identify breeding tasks, and epidemic prevention and control ahead of time.


Improve marketing and service capabilities

Through online marketing platforms, mobile APPs, rich feed and breeding market marketing techniques, the interactive capabilities and service qualities with the terminal poultry breeders are greatly enhanced.


Significant improvement of job performance

Through push means of workflow visualization and work task automation, the high communication cost problem and the low work efficiency problem existed in enterprises are solved scientifically.