China has much quality grain feeding stuff but they are all costly. It is impossible to use these quality but costly feeding stuff in livestock breeding all the time. Chinese livestock breeding is basically characterized by the fact that 85% of the meat products are supplied by numerous individual raisers. These individual raisers are low in feeding technology levels and are highly dispersed. Their feeding capacity is low, recycling is long, production fund is limited and production scale is small. They mainly rely upon cheap labor and non-convenient feeding stuff (rice bran, distillers’ grains, swill, vegetable stems and leaves) to maintain their production. These characteristics determine that the individual raisers can not afford for the costly grain stuff in large quantity, which leads to the situation that the feeding stuff produced by the manufactures are hard to sell and the numerous individual raisers can not afford for the feeding stuff, and the status quo will exist for a long period of time. This is where the bottle neck lies in development of China’s livestock breeding: large feeding stuff manufacturers are competing fiercely and many of the enterprises has gone into bankruptcy while the massive individual raisers’ demand for quality feeding stuff cannot be met. On the other hand, even if all the individual raisers could afford for the costly grain feeding stuff, China’s grain resources (maize, wheat, and soybean) cannot sustain such demands. With China’s entry into WTO and development of economy globalization, China’s feeding stuff industry and livestock breeding are now experiencing strong impact of international market. It is an urgent and severe issue as how to lower the cost of feeding stuff while sufficiently meet various nutritious demands of livestock. Only with unremitting innovation to produce highly effective feeding stuff with low cost can feeding stuff additives and processing machinery follow the development trend of feeding stuff industry and achieve an undefeatable position in the market. China feeding stuff industry’s long-term steady growth relies upon development of the feeding stuff that can meet the demand of the dispersed individual raisers, which can create massive social and economic benefits. The actual and potential markets are extensive. This implies that the feeding stuff industry must combine the local stuff resources and breeding characteristics, fully make uses of the advantages of low investment and flexible operation of small scale feeding stuff enterprises to develop quality feeding stuff with local characteristics. This is an enormous market. In fact, some insightful men have preceded and achieved remarkable economic benefits.