I. Market PROSPECTS

As China's economy grows, pet industry has been a rapid development, people keep pets have been from the simple to become a kind of sustenance of people's spirit, the role of the pet is also quietly changing, has increasingly become a partner in people's lives, in the promotion of harmonious social development play an irreplaceable role in regulation. and the pet industry as a subsidiary industry-pet food industry in the national economy has played an increasingly important role.

China's pet industry has been developed for more than 10 years, but compared with the developed countries in the early stage of industry development, the current total number of Chinese and the overall number of canine cats, the actual performance of the population is far greater than the number of pets owned. According to the proportion of the total number of households owning dogs in cities, Beijing is 7.5%, Shanghai is 4.5%, and the country is only 1.7%. In America, the proportion of domestic dog breeds is 55% and Japan is 29.4%. According to survey data from domestic pet food manufacturers, the proportion of pet-feeding households in mainland China is only 15%, which shows the huge gap between China's pet industry and foreign countries, but also reveals the business opportunities and development space of the Chinese market in the future. These data, on the one hand, illustrate the huge gap between domestic and international markets, and also show that the domestic market will face greater business opportunities and development space in the future. In particular, the future of consumer awareness of progress, rural gradually to urbanization transfer, dog and cat pet ownership of the gradual growth, will further promote the rapid development of the entire pet industry. China's pet industry is expected to continue to grow at a rate of 35% a year.

While the global economy has suffered a slump since 2007, all walks of life have been struggling, but sales of pet food have continued to increase. This reflects the strong vitality of the pet industry, it seems to verify the truth: The more difficult times, the more people care about our faithful friends. Market research from Euormonitor Internaitional shows that despite the recession, the global pet market is still showing a total growth of 34%, with global sales of cat and dog food growing from $3.89 billion in 2004 to $53 billion in 2008. From Asia's economic powerhouse Japan, the pet industry has not stagnated because of its decade-long economic bubble, but the pet economy has been in a steady state of growth, raising 136.9% in 1998-2008, 10 years, from pet dogs. It is because of the increase in pet breeding, the development of pet-related industries in Japan, pet economy in its national economy played a role that should not be ignored. From the Taiwan region of China, the population is only 22.9 million (2009 statistics), the number of pets is 2.5 million, the number of households raising pets is 13.5%, while the number of households in Japan to keep pets is 35%, the United States is 39%.

2.Raw material formula (detailed consultation Sinoe)