Linyi, what are the genes that enable it to become the city with the highest value of pet food production in Shandong?

Introduction：July 17-18, industry colleagues are invited to meet under the Yimeng Mountain and on the banks of the Linyi River to participate in the 2024 Pet Supply Chain Conference.

Looking at the entire Chinese pet food market, Shandong Province has a pivotal position, and it is not too much to say that it occupies half of the pet food industry. It is also true that Shandong Province has the largest number of listed pet food companies in China, from Pet, Ruth to Goodbaby, Shandong Province in China’s pet industry map, leaving a colorful stroke.

And in Shandong, a large province of animal husbandry and spoiled grain province, there is a city of significance, which is named for the Linyi River – Linyi.

As the venue of Pet Supply Chain 2024, Linyi, the “Logistics Capital of China” and the “Meat Industry Capital of China”, is not only the most populous and largest city in Shandong, but also a city with the highest scale of animal husbandry and feed production.

A number of factors contributed to Linyi becoming the city with the highest output value of pet food (excluding snacks) in Shandong Province (1.62 billion yuan), accounting for 24.8% of the total output value of pet food in the whole of Shandong Province (6.53 billion yuan), and this figure is still growing; in addition, Liaocheng’s output value of pet food (excluding snacks) was 1.49 billion yuan, a year-on-year increase of 52.3%.

PS: Data source–Shandong Province Feed Industry Association

Meat Industry Capital of China

Broiler, meat duck and other production ranked first in Shandong

With its favorable geographical location, rich natural resources and profound historical background, Linyi has become an important coordinate on the map of China’s animal husbandry industry, which is also a unique raw material advantage for the development of pet economy.

In recent years, Linyi City, Linyi City, the animal husbandry industry shows a strong momentum of development, the industrial structure continues to optimize, the industrial chain is increasingly perfect, not only in the production, output value of the remarkable achievements, but also in the germplasm resources protection, industrial transformation and upgrading of the accumulation of a wealth of experience in the well-known Shubao Poultry, Jinluo Group, the first every Group, Javo Group and other companies are also in Linyi.

According to public information, Linyi City has 5,057 farms on record, including 1,111 standardized farming demonstration farms at all levels and 12,693 livestock and poultry farming professional households, with the scale of farming ranking the forefront in Shandong Province.

In terms of output value, the output value of Linyi’s animal husbandry industry has also taken up a significant share of Shandong province, with total meat production reaching 4 million tons, sales of slaughtering enterprises amounting to 220 billion yuan, the output value of the feed industry amounting to 160 billion yuan, the output value of veterinary medicine amounting to 16.5 billion yuan, and the total output value of the whole industrial chain exceeding one trillion yuan, with all the indicators taking the lead in the country.

In 2023, Linyi’s meat poultry slaughtering reached 471.958 million birds and egg production reached 384,000 tons, ranking first in Shandong Province in terms of broiler slaughtering volume, while Linyi’s meat duck slaughtering, hog slaughtering, rabbit slaughtering, and feed production likewise ranked first in Shandong Province, with remarkable achievements, which allowed Linyi to be awarded the title of “China’s Meat Industry Capital”by the China Meat Association in 2021. Linyi was honored by the China Meat Association as the “Capital of China’s Meat Industry” in 2021.

In addition, there are also agency statistics that in 2023, Linyi supplied more than 800,000 tons of chicken by-products to neighboring pet food producers, including 785,000 tons of chicken racks, 12,000 tons of chicken livers, and 0.4 million tons each of chicken heads and chicken intestines.

Logistics Capital of China

Linyi is striving to become “China’s Pet Products Distribution Center”.

In addition to the name of “Meat Capital”, Linyi has another title – “Logistics Capital of China”.

“Yiwu in the south, Linyi in the north”, Linyi is located in the Yangtze River Delta Economic Circle and the Beijing-Tianjin-Hebei Economic Circle combined point, the center of the North-South corridor hub in eastern China, the geographic advantage is obvious, with Linyi as the center, the north can be radiated to the Beijing-Tianjin-Hebei region, the south can be expanded to the Yangtze River Delta zone.

(Linyi Modern Logistics City, photo by Caixin News Agency)

After more than 40 years of cultivation and development, Linyi now has 23 logistics parks and nearly 3,000 distribution routes, covering all cities above county level and reaching all ports and harbors in the country, at a cost 20-30% lower than the national average, forming the largest market cluster, an important logistics turnover center and wholesale trade center in the country.

In the development of the pet industry, Linyi has built the Pet Intelligence Cloud Warehouse Logistics Park, which is equipped with various types of warehouses such as high-standard dry warehouses, refrigerated warehouses, constant temperature warehouses, medicine warehouses, and so on, and it can provide online and offline distribution, warehousing and transportation, grouping and dispatching, import and export, and cold-chain management and other full-chain services for the pet industry producers and brand owners. With its inherent advantages, Linyi is striving to become “China’s Pet Products Distribution Center”.

A number of well-known pet companies are located

Linyi became the highest value of pet food production in Shandong city

The unique opportunity for the development of the pet industry has made Linyi the home base of many famous pet companies. Counting the pet enterprises in Linyi, the first one is Shuaike Pet.

The company, which is expected to become the 6th listed pet company in China and the 4th in Shandong, is located in Yinan County, Linyi, which is the “No. 1 County for Meat Ducks in China”, and which contributes 15%-20% of the country’s annual chicken and duck slaughtering volume, and which has driven Shuaq Pet’s takeoff in the pet industry.

According to public information, Shuaike has become the first tier of domestic pet food production factory, can produce thousands of pet food, annual output of more than 300,000 tons, the dominant market share of more than 15%.

In the capital market, Shuaike has completed 9 rounds of financing in 3 years, and on June 24th of this year, the company also received equity investment from AIC Parent, Inc. under Advent Capital, and Boyu IV.

In order to promote the development of the pet industry in Linyi, Shuaike, together with the Feed Research Institute of the Chinese Academy of Agricultural Sciences and the Yinan County People’s Government, jointly set up a “Pet Food Research and Development Center” in July this year, to help Yinan, a subsidiary of Linyi, develop into a demonstration and leading base for the high-quality development of pet food.

In addition, a total investment of 3 billion Yinan Pet Food Industrial Park was established in Yinan County, relying on the raw materials and logistics advantages of the Yinan food industry, and is committed to building the most influential high-end pet food, supplies production and research clusters in the country. At present, there are 4 pet food enterprises in the park, which are Shuaike Pet Food, Han’o Pet Food, Dongzhi Pet Food and Zhengdao Pet Food, and 4 pet food supporting enterprises, which are Desheng Food, Meihua Food, Ketelai Food Machinery and Jiawu Logistics.

In addition to Shuaike, there are a series of famous pet enterprises in Linyi, such as Saixi Pet in Yishui County – the factory covers a total area of more than 60 acres. It has the most advanced standardized production workshop of 20,000 square meters, equipped with a full set of fashionable high-end automatic pet food production line, with an annual output of 50,000 tons of fresh pet food.

Lanyi Lanshan District, Linyi, Pet Cloud Line – has been invested tens of millions of dollars by Jinding Capital, with its large-scale freezer, constant temperature refrigeration, room temperature storage, it can provide B2B warehousing and distribution services, B2C product sets and one piece delivery, CDC/RDC general warehouse services for big brands, and also has the qualification of veterinary medicine warehouse and distribution management.

Guanguzhuang, Lanshan District, Linyi, China–There are more than one hundred products on the market, and its product line has basically covered the whole segmented category of pet food mainly consisting of pet staple food, snacks and health care products.

Ruixiangnuoer, Hedong District, Linyi, covering an area of 82 acres, based on the first animal food processing plant in Yimeng Mountainous area for poverty alleviation by the Ministry of Commerce in 1984, now owns two domestic leading fully automatic computer-controlled pet food production lines, with an annual production capacity of more than 50,000 tons.

Yinan County Alfie and Buddy Ideal Factory – covers an area of 118 acres, with a building area of 73,000 square meters, and an annual production capacity of 20,000 tons of high-end pet food and 60,000 tons of high-end pet food raw materials.

Numerous enterprises are working together to make Linyi the city with the highest output value of pet food (excluding snacks) in Shandong Province. According to data released by the Feed and Veterinary Medicine Division of the Shandong Animal Husbandry and Veterinary Bureau and the Shandong Feed Industry Association, the output value of pet feed in Linyi will be 1.62 billion yuan in 2023, a year-on-year increase of 19.6%.

Increased support from the Fund

Maybe it will also be a big push for the pet industry to grow.

According to the public information of Linyi Municipal Government, over the past few years, Linyi City, focusing on a number of key areas to carry out the attack on investment, the first half of this year, Linyi City, a total of 753 investment projects, in place of funds of 63.53 billion yuan.

It is disclosed that in recent years, Linyi City Finance has provided fund support by focusing on promoting fund establishment and accelerating project investment. As of July this year, Linyi has set up a total of 42 cooperation funds with a total size of 23.145 billion yuan and invested in 63 projects with an investment amount of 9.123 billion yuan.

In addition, Linyi has also set up three investment funds with a total scale of RMB 3 billion, namely: RMB 2 billion Zhitong Dual-Carbon Industry Investment Fund, RMB 800 million Linyi Peiyu Equity Investment Fund, and RMB 200 million Shandong Caijin Yimeng Dongxing Industry Investment Fund. At the same time, it also issued the Announcement on Recruitment of Talent Venture Capital Sub-fund Managers, adopting the market-oriented public selection method to establish angel-type venture capital funds together with social capital.

In December 2022, Linyi issued the “Development Plan for Strategic Emerging Industries in Linyi” to vigorously promote the development of the real economy and unswervingly implement the strategy of strengthening the city with advanced industries; and in June 2024, Linyi issued the “Several Measures to Optimize the Business Environment in Linyi”, which put forward three measures for the benefit of enterprise policy services.

These dynamics may also be a major push for the rapid development of the pet industry in Linyi.

Write in the end: in the field of pet food, Shandong has walked in the forefront of the country, and Linyi may have walked in the forefront of Shandong, Linyi characteristics of the pet development industry is worth our reference and reference.

On July 17-18, 2024 Pet Supply Chain Conference will be held in Huasheng Jiangquancheng Hotel, Luizhuang District, Linyi, which is co-sponsored by Pet Industry Home and Shandong Pet Industry Association. With the theme of “Quality Made 2024”, the first half of the main forum will focus on the basic plate, looking at pet products from a global perspective, pet food from a bottom-line perspective, safety from a capital perspective, and how to break the homogenization problem through dialogue between brands and factories. Safety, capital perspective of the domestic pet market, brand and factory dialogue seminar to see how the pet industry to break the homogenization problem.

The second half focuses on new growth, with online data insights to see pet owners’pet ownership trends, offline data insights to see the ice and fire of store business, functional pet food to see the opportunities and challenges of the new product cycle, first-tier channels to see the best-selling pet products in the sinking market, scientific research perspectives to see the secrets behind pets’ love of food and not getting tired of it, and category breakthroughs to see the opportunities for pet brands to seize growth in the new race track.