Feed Industry in Bangladesh (End)
Other Competitive dynamics of the Feed Milling Industry
Rivalry among existing firms HIGH
The industry is highly competitive with a good number of players including some leading industrial groups like Square, Kazi, Aman, Provita etc. There are also many small companies which are targeting the small local markets.
Threat of new entrants MODERATE
There is medium technical or cost barrier to enter the industry. Number of customers and market size are alluring new entrants. Every year new companies are taking registration to serve the poultry product industry.
Power of suppliers MODERATE
Raw material is mainly import-based; India, Chine are the main source of raw material. Moreover some large companies also import and trade these RM. Good quality raw materials suppliers’ charges high price because of high demand.
Power of buyers MODERATE
All renowned companies provide same quality of products at similar range. Buyers switching cost is very low and Brand loyalty is not strong in the industry.
There is very limited chance of substitute product.
The main raw materials of feed mills are Maize, Rice Bran, Meat Bone Meal, Rapeseed, Soya bean Meal, Fish Meal, Fish Oil, Protein Concentrate, DL Mathanine, Salt, Premix, Growth Propoter, Enzyme, Mastered oil, Mastered Oil Cake, Atta etc. Some of the raw materials are mostly imported from India and rest of the raw materials is available in local sources.
Roughly every year 160,000 MT of corn is needed for the current production facility. Out of the total, around 60% is imported and the rest is sourced locally. Of the imported corns, almost 100% is imported from India. Large feed manufacturers have their nominated corn supplier in India and Bangladesh who supplies corn on season basis. Imported Corn is routed to the Bangladesh Hill Station by train and from Beanpole to feed mill’s production facility – truck transportation is used. Sourcing of corns basically depends on the seasonality. In India peak season for corn production is from October-December and May to July. In this time frame, feed manufacturers can import corn from India. The critical time is August-September when feed millers have to bear higher price to procure corn.
Second most important raw-material is the soya bean. Yearly around 82,000 MT soybean is consumed for producing feed, of which 60% is imported from India and the remaining is procured locally. Moreover, for producing feed - millers import a variety of other raw materials which include premix (a mixture of vitamins and other additives to the feed) from Thailand, Meat and Bone Meal, oil, vitamins and other additives. Overall, feed millers store 3/4 months’ stock in hand at all times. Produced feed is supplied to the DOC production unit and rest is supplied to different poultry factories of Bangladesh through nominated distributors. The pricing is mainly fixed by auction.
Công ty TNHH Khoáng Sản Xanh / 0 Bình luận / 04/ 08/ 2017