The Chinese feed premix market consists of many players (small, medium, and large); however, the industry is dominated by a few, which include Koninklijke DSM N.V. (The Netherlands), Nutreco N.V. (The Netherlands), Cargill, Incorporated (U.S.), and InVivo Group (France), which collectively account for a major part of the Chinese feed premix market. Acquisitions and expansions are the preferred growth strategies in this market. The purpose of adopting these strategies is that it results in better market penetration and market coverage, increases product portfolio, and helps to reach new potential markets. Other players such as DLG Group (Denmark), Archer Daniels Midland Company (U.S.), AB Agri Ltd (U.K.), Charoen Pokphand Foods PCL (Thailand), DBN Group (China), and Dabaco Group JSC. (Vietnam) also have a strong presence in this market.
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Koninklijke DSM N.V. (The Netherlands)
Koninklijke DSM N.V. is one of the leading players in the feed premix market and has a significant presence in China as well. The company has four major business units, namely, nutrition, performance materials, innovation Centre, and corporate activities. The feed premix products are offered under the nutrition segment. Koninklijke DSM N.V. focuses on acquisition as a strategy with its stakeholders to derive synergies. In 2014, the company acquired Aland (HK) Holding Limited (China) and Bayer’s feed mill located in China, strengthening its feed premix portfolio in emerging economies such as China.
Nutreco N.V. (The Netherlands)
Nutreco N.V. (The Netherlands) has three main business segments, namely, animal nutrition, fish feed, and compound feed & meat Iberia. The company offers feed premix products through Trouw Nutrition – an important part of Nutreco’s animal nutrition business. The company is investing ~USD 16.6 million in September 2015 in its feed premix business in Southeast Asian countries such as Indonesia, Vietnam, and China. Moreover, Nutreco also acquired two Brazilian feed premix companies in 2014. Nutreco is focusing on increasing its feed premix business primarily with strategies such as acquisitions, partnerships, and joint ventures.