Abstract: Extending the industrial chain of feed enterprises to the downstream industry or the upstream industry can expand the profit space of enterprises, overcome various uncertainties in the external market and at the same time benefit the food safety of our country.There are two ways to extend from feed industry to aquaculture,one is contract farming,the other is internal farming. Contract farming is widely used in feed enterprises at present, but from the international experience, it is a trend to achieve complete vertical integration through internal farming. Through foreign investment, feed enterprises can enter the upstream grain planting and purchasing fields, which can reduce the cost of feed grain and realize the whole industrial chain management in a real sense.