The 2023 pet supply chain conference is a perfect conclusion. See you in Shanghai on August 16!

The "2023 Pet Supply Chain Conference (Tai'an)" led by the people's Government of Tai'an and co hosted by Shandong pet industry association and pet owners came to a perfect conclusion.

    On July 6th, under the theme of "The Power of Vision," the conference conducted a retrospective analysis of the development history of China's pet supply chain, seeking enduring principles. Anticipating the future, it aimed to identify new opportunities arising from shifts in the alignment between pet factories and pet brands in supply and demand. CTC China, alongside pet brand decision-makers, supply chain managers, pet factory leaders, technical managers, and other industry professionals, convened to collectively discern the developmental trajectory of China's pet supply chain. This collaborative effort aimed to facilitate swift connections between brands and supply chains, fostering industrial development.

At the opening of the conference, an Zhongping, President of Shandong pet industry association, Zhang Jinping, Secretary of the Party committee and director of the state owned assets supervision and Administration Commission of Tai'an City, wangxiangqian, President of the pet feed (food) branch of China Feed Industry Association, and zhaohongshan, deputy director of the feed and Veterinary Medicine Department of Shandong Animal Husbandry and Veterinary Bureau, delivered speeches on the stage.

An Zhongping, chairman of Shandong Pet Industry Association

Zhangjinping, party secretary and director of the state owned assets supervision and Administration Commission of Tai'an City

Wangxiangqian, President of pet feed (food) branch of China Feed Industry Association

Zhaohongshan, deputy director of feed and veterinary medicine division of Shandong provincial animal husbandry and Veterinary Bureau

The conference is divided into two parts. The first part is themed with "seeing the trend of listing", and the second part is themed with "seeing the trend of brand". The details shared by the guests are as follows:

See the trend of listing

     Guest sharing    

Tianfeng securities Wuli

The pet industry is expected to produce 10 companies with a market value of more than 10 billion yuan

At the event, Wu Li, Deputy Director of Tianfeng Securities Research Institute and Chief Analyst of Agriculture & Emerging Industries, presented on the "China Pet Factory IPO Wave at the Right Time." He highlighted that the pet market is predominantly influenced by young consumers from the post-90s generation, comprising over 55% of the market share, followed by the post-80s generation. Most of these pet owners view their pets as companions, with "family" being the primary role assigned to them, accounting for 85.1% of pet owners.

Moreover, Wu Li emphasized that by examining leading companies in the mature U.S. market, it becomes apparent that these companies often secure ample funds through IPOs and other means to bolster R&D investments, thus establishing a competitive advantage for their products and services. They swiftly penetrate other regional markets and diversify into different sectors through mergers and acquisitions. Looking ahead, the pet industry is anticipated to witness the emergence of at least 10 pet companies with a market value exceeding 10 billion yuan.

Ren Fuzhao of zhongchong shares

Ren Fuzhao, Secretary of the Board of Directors of Zhongchong, delivered a keynote speech titled "Reshaping the Global Supply Chain: How Can Pet Factories Secure Global Market Share?" at the event. He emphasized Zhongchong's profound involvement in the supply chain. Since its listing, Zhongchong has undergone four rounds of financing, with each aimed at expanding production capacity. The overarching goal is to construct a robust industrial chain and furnish superior supply chain support for both domestic and global consumers and brands.

As the global economy, technology, and capital flow continue to advance, the pet industry's supply chain is undergoing a phase of globalization. Within this paradigm, the supply chain is guided by the principles of cost-effectiveness and efficiency, gradually evolving on a global scale. Amidst this reshaping of the global supply chain, challenges such as securing global market share, enhancing profitability, and mitigating operational risks are universal concerns. In response, Zhongchong shares its strategy:

1、 The vision and layout of Globalization

Since its establishment in 1998, zhongchong has continued its global layout. The global enterprise and layout have brought not only global customers, but also global senses to zhongchong.

2、 Customer focus in everything

"Based on customer demand, meet customer demand and create demand for customers" is the second strategy given by zhongchong in response to the reshaping of the global supply chain.

3、 Constructing the moat of supply chain

In its enterprise development journey, Zhongchong has been dedicated to building a formidable supply chain fortress and crafting world-class pet food.

Regarding the future competitive landscape of the industry, Zhongchong foresees that, currently, differentiated brand strategies, unique playing methods, or advantageous channel positions will significantly impact overall market competition. However, as the industry matures and market competition intensifies, the pivotal role of the supply chain, anchored in product quality, quality control, and production efficiency, will increasingly come to the forefront and gain paramount importance. Zhongchong shares the belief that industry competition may gradually transition into supply chain competition, underscoring the vital role of an optimized supply chain in achieving sustained success.

Patty shares chenniehan

Pet enterprises must undergo a process of productization to elevate their brands and break out of the existing cycle, transforming into intelligent brands.

 

Chenniehan, President of Patty's Brand Operation Division, addressed the audience with a keynote speech titled "What Are the Gains and Experiences of This Pet Company in the Years of Export to Domestic Sales?" She emphasized that the strengths of supply chain enterprises in branding lie in hardware equipment, including product research and development, production capabilities, and cost management. However, the challenge arises from the disconnect between products and consumers, resulting in a lack of marketing prowess.

 

Pet enterprises should aspire to evolve into companies with a brand-centric mindset, but achieving this involves a three-stage process. Firstly, enterprises must establish a product brand by creating standout products that resonate with consumers and devising highly effective communication content for targeted marketing. Secondly, they should transition to building category brands by diversifying their product lines within specific categories and positioning their brands as leaders within those categories through strategic marketing efforts. Finally, the ultimate goal is to develop a smart brand by deconstructing the brand, expanding into new categories, and ultimately achieving brand intelligence. This entails breaking free from the confines of traditional brand structures and embracing innovative approaches to brand development.

Fubei's favorite food caijingding

Caijingding, Deputy General Manager of Fubei Pet Food Supply Chain, delivered a keynote speech titled "The Rise of Domestic Sales: Why Does This Pet Factory Become a Winner in the Manufacturing Industry." He emphasized that building a robust barrier in the pet food supply chain necessitates a focus on intelligent production and manufacturing capabilities. Caijingding stressed that concentrating on cultivating product strength and research and development prowess is the fundamental principle for enterprise growth. He further highlighted the potential for intelligent manufacturing to drive a new trend in pet food production.

The significance of intelligent manufacturing lies in several key aspects:

Firstly, it enables thorough traceability throughout the entire production and processing chain, from the selection of raw materials to transportation, production detection, and manufacturing processes. This ensures product quality and food safety.

Secondly, it facilitates online management, allowing for real-time data collection and control of equipment performance, operational conditions, and product parameters. This real-time insight is crucial for efficient operations.

Lastly, intelligent manufacturing enables small-scale flexible production, catering to customized needs and ensuring competitiveness in the market.

Caijingding also highlighted the favorable conditions for the development of China's pet industry, including national policies, economic factors, technological advancements, and social trends. In light of this, Forbes expresses its willingness to collaborate with domestic pet enterprises to construct a sustainable ecosystem for the pet industry, ushering in a new era for pets.

Zuoyanfeng of Shuaike group

Zuoyanfeng, Deputy General Manager of Shuaike Group, delivered a keynote speech titled "How Does This Pet Factory Forge a New Path Amongst Numerous Leading Factories?" during the event. She outlined Shuaike's three core pillars: industry leadership, a pragmatic team, and customer success.

Zuoyanfeng emphasized that Shuaike has thrived by harnessing the momentum of the pet industry. As a business-to-business (B2B) enterprise, Shuaike refrains from flashy publicity stunts and focuses solely on its role as a specialized supply chain entity. Despite not having its own brand, Shuaike prioritizes innovation and technology, promptly delivering advancements to its customers. This customer-centric approach is exemplified by Shuaike's commitment to transparency and efficiency in its operations, such as providing direct access to meat sources within 30 minutes, producing animal fat independently, ensuring one-yard chain product traceability, conducting rigorous inspections on agricultural raw materials, and meticulously documenting raw material information. Such transparency aims to motivate factory managers and production personnel to maintain high standards.

Furthermore, Zuoyanfeng stressed that Shuaike's ultimate goal is to enhance customer competitiveness and ensure their sustained success. By prioritizing the longevity and competitiveness of its customers' businesses, Shuaike strives to drive innovation and foster long-term partnerships.

     Theme discussion   

The last part of "seeing the trend of listing" is a discussion session themed with "n possibilities for the future development of pet factories". Chentengxi, chief analyst of the Western securities research and Development Center&trading house, served as the moderator of the discussion, and an Zhongping, founder of Zhongyu pet and chairman of Shandong pet industry association, wangfuzheng, chairman of Shuangan technology, and dukezhen, general manager of Qingdao Mingyue Anxin Nutrition Technology Co., Ltd., participated in the discussion.

See brand trend

     keynote speech   

Chongyejia Shiro

In his keynote speech titled "Looking at the Latest Data: Which Categories Have Opportunities, Which Have Excess Capacity?" at the event, Chongyejia, the esteemed founder of the Expo, delved into an analysis of recent data trends from the perspectives of transaction volume, product trends, and offline channels. Based on these insights, he made predictions about the future trajectory of the entire industry.

He forecasted that the Chinese pet market will continue its growth trajectory, with a significant surge expected by 2026. Specifically, he projected that by 2026, the consumption of staple food for pets in China will increase by one million tons compared to the current levels. This surge in demand implies a substantial need for increased production capacity.

Moreover, YeJia highlighted that over the next three years, the industry is poised to witness the creation of nearly an entire Chinese factory market. This surge in production capacity, amounting to one million tons, presents a remarkable opportunity. However, he emphasized that this expanded capacity must not merely replicate existing production capabilities. Instead, it should be strategically aligned to meet future-oriented categories and cater to evolving consumer demands. The focus should be on innovative solutions that anticipate future trends and preferences in the pet food market.

Pidan mawenfei

Stability is more important than innovation in the selection of supply chain, and honesty is more important than innovation

Mawenfei, founder of pidan, shared the keynote speech on "what tuition fees have we paid for factory cooperation". He said that in the supply chain, stability is particularly important and honesty is more important than innovation.

Mawenfei also pointed out that factories are the foundation of the industry. No factory, no industry, and the result of bad money driving out good money is that no one can make money. Therefore, only when every source of information, that is, the factory, can be transparent from the five core points of raw materials, formula, process, packaging form and sales form, the brand can express itself, high-quality large customers cooperate for a long time, and potential small customers seriously support, can the industry achieve a healthier and more sustainable development, which is also beneficial to players in the industry.

Only in this way can we sell at the same value as imported brands and earn the same money, gross profit and efficiency as them. This part of profits can be fed back to all circulation links, so as to have better raw materials, better formulas, better processes, better factories, better packaging, better sales forms and more different brands.

     Theme discussion   

Scene 1

Cutting edge brands: choose the right OEM and avoid detours for three years

The first theme of the seminar was "cutting edge brands: choose the right OEM, and avoid detours in three years". Wuwenbin, chairman of Exxon pet industry group, presided over the seminar. Wen Guangkai, chairman of gaoyejia, chenjunren (head of supply chain) of Puyin CSCO, qishaoyong, founder of maodali brand, and zhangxinyi, founder of fat face cat house brand participated in the discussion.

Second

At the end of the supply chain, how do pet brands spend money on the cutting edge

The second theme discussion was "supply chain side, how pet brands spend their money on the cutting edge". It was hosted by the pet manufacturer, Siro, founder of the Expo. Huangzhe, product manager of Budou (Beijing) Supply Chain Management Co., Ltd., sunjianshe, supply chain director of Ocean Star, huazilong, general manager of pet premium products, zouerwei, President of huaxialong supply chain, and zhengshijie, sales director of Huakang packaging participated in the discussion.

     Thematic debate  

The theme debate session was specially planned. Haobo, vice president of xinruipeng group, presided over the debate and sent chefs&Chen Ming, founder of Kyle capital, zhuchanglin, chairman of Kairuisi, chenshangwu, general manager of Guotai Minan pet, and xiuhaoren, founder of his highness maoqiu to participate in the debate.

Group standard release

At the event, Li Jun, Director of the Standardization Technical Committee of Lu Chong Association and researcher at the Feed Research Institute of the Chinese Academy of Agricultural Sciences, unveiled two group standards: baked full-price pet food and wet full-price pet food. He detailed the meticulous process involved in creating these standards.

 

The group standard for baked full-price pet food was formally launched in April 2023 after extensive market research and consultation. It underwent rigorous scrutiny through five standard-setting promotion meetings and one review meeting. Li Jun highlighted key criteria within this standard, emphasizing that the core definition of "baked full-price pet food" revolves around using meat and nutrients as primary ingredients. The standard mandates that fresh meat constitutes over 50% of the product, with animal protein comprising more than 80% of the mass percentage. The material is formed under normal pressure at temperatures below 45°C and dehydrated using industrial heat in the range of 60°C to 95°C. Additionally, the food must be suitable for pets' daily nutritional needs, with the starch gelatinization degree not falling below 80% in processing quality. Furthermore, the standard recommends designing appropriate crude protein content to prevent digestive burdens on pets.

 

Regarding the wet full-price pet food standard, revisions were made to several aspects. These included increased technical requirements for packaging containers, raised upper limits for crude fiber content, revised detection methods for taurine, thiamine, and vitamin E, and the addition of conditions exempting taurine detection unless explicitly claimed in cat food. Additionally, the commercial sterility test was removed as a factory inspection item.

Zhongyu night dinner

The conference ended with a reception dinner for the 2023 pet supply chain conference sponsored by Zhongyu pet, which was held at the same venue.

On a midsummer night, we took the opportunity of toasting and chatting, and took the passionate dance as a platform to exchange and share experience with each other, so as to make suggestions for promoting the development of China's pet industry.

Keep walking on the way!

China Pet Food Safety Forum

On July 7, the 2023 pet supply chain conference held a "zero tolerance" pet food safety forum at the branch venue on the second day of July. Industry insiders jointly discussed the problems faced by the pet food industry in terms of food safety, and exchanged views on R&D, raw materials, production, testing and other aspects.

The opening ceremony of the conference was delivered by Silang, the pet industry expert and founder of the Expo, and Zhang Hong, the Party branch secretary and vice president of Shandong pet industry association and general manager of Qingdao Cornell Feed Co., Ltd.

Cosseting industrialist&Siro, the founder of IT Expo

Secretary and vice president of the Party branch of Shandong Pet Industry Association&CTC· Zhang Hong, general manager of China

Scene 2 Guotai Minan pet chenshangwu

Large OEM factories should be transparent in raw materials, production, testing and R&D

Chenshangwu, general manager of Guotai Min'an pet Co., Ltd., shared the keynote speech of the "transparent" OEM that the brand wants. He said that in the survey of factors that Chinese consumers consider when purchasing pet food in 2022, there are four main factors, namely pet preference, brand reputation, raw materials and cost performance. Among them, consumers do not think much about the products from the OEM, so for the factory, OEM of one or more brands has no impact. More consumers still focus on products and product power. It is hoped that the factory and the brand will be honest, and the factory will list more clearly the composition of the cost and share it with the brand. At the same time, it is hoped that the brand can participate in the cost control of the factory to optimize the product cost together.

Weifang Aohai he Hu, Shandong Luhai Yaopeng

There are many problems with animal protein raw materials, and the problem of chicken powder is more concentrated

He Hu, the general manager of Weifang Aohai Feed Co., Ltd., and Yaopeng, the general manager of Shandong Luhai Biotechnology Co., Ltd., shared the keynote speech on "several potential safety hazards in raw material supply". They said that the raw materials of PET staple food include plant raw materials (corn, wheat, brown rice, soybean meal, potato starch, etc.) and animal raw materials (chicken meal, fish meal, meat and bone meal, blood cells, fresh meat, chicken oil, etc.).

Among them, plant raw materials often encounter problems such as excessive toxins and poor processing environment of rhizome crops; Animal protein products in animal raw materials will encounter problems such as adulteration and adulteration, instability between batches, excessive microorganisms, etc.; frozen meat and fresh meat will encounter problems such as unstable freshness, excessive microorganisms, uncertain transportation conditions, and oil raw materials will encounter problems such as adulteration and adulteration, excessive oxidation indicators, etc.

Li Jun, feed Research Institute, Chinese Academy of Agricultural Sciences

Factories and brands need to focus on the inspection of labels, raw materials and product quality and safety

Li Jun, a researcher at the feed Research Institute of the Chinese Academy of Agricultural Sciences, shared the keynote speech on "pet food safety production and risk monitoring and early warning trends". He said that after the risk monitoring of pet food in recent years, it was found that food problems occurred more frequently in 2022. For example, some brands did not strictly implement the provisions on pet feed labeling, had false labels, misled consumers with product names The labeling of raw material composition is not standardized, substances used in unapproved pets are used in violation of regulations, product function claims are not standardized, and some nutritional supplements are suspected of being fake veterinary drugs, such as treating and preventing diseases.

In addition, he also reminded that in 2023, factories and brands need to focus on checking the standardization of pet feed labels, monitoring the main quality and safety indicators and illegal additives of pet feed raw materials and all kinds of feed products, and also need to carry out the investigation and evaluation of prescription food for pet formula feed; At the same time, it is also necessary to focus on checking whether pet feed labels are standardized, and monitoring the main quality and safety indicators of pet feed products and illegal additives.

At the same time, Li Jun also gave suggestions on the quality control of pet food production according to the existing problems of pet food. For example, to ensure and improve the quality of feed processing, close cooperation and unified coordination can be adopted in the links of procurement, formula, on-site operation quality inspection, packaging, transportation, etc; Detect the feed quality and safety indicators, and provide professional training for the inspection and testing personnel.

Intertek group chenlili

It is necessary to formulate corresponding testing standards for pet feed products

Chenlili, laboratory technical manager and senior engineer of Intertek group, shared the keynote speech of "content update and method application of pet food testing" at the scene. She said that most of the current national standard testing methods are targeted at traditional large-scale feed products and are not necessarily completely applicable to pet feed products, so it is necessary to formulate corresponding testing standards for pet feed products.

Under the leadership of China Feed Industry Association, national feed quality inspection and Testing Center (Beijing), Shandong pet industry association and other institutions and experts, a series of pet feed testing group standards will be released soon. This is of great significance to further improve China's pet feed standard system and reasonably evaluate the quality of pet feed.

At the end of the forum, the organizer also organized a discussion session with the theme of "customers' complaints about" zero tolerance "and how brands and factories can guard this level". Haobo, vice president of xinruipeng group, presided over the discussion session, and participated in the discussion with big V dog son, founder of MARUMI brand, wenguangkai, chairman of gaoyejia, and Wenji, head of tail life vp&supply chain.

In the next step, CTC·China will take this event as an opportunity to continue to play a leading role in the pet food industry chain, strengthen departmental linkage, provincial and local linkage, government enterprise linkage, science and enterprise linkage, promote innovation, promote new technologies, and always provide continuous, high-end and high-quality supply and services for different customer groups with professional and safe products, excellent service quality and continuous comprehensive development.