Shandong Yisheng Livestock & Poultry Breeding Company Ltd. (Yisheng) and Hubbard have reached a historic agreement for the supply of Hubbard great grandparent (GGP) stock, the companies announced during a special press conference on November 25.

The first Hubbard GGP deliveries have already successfully been placed in China on the facilities of Yisheng, China’s largest broiler parent stock supplier with a volume of about 17 million parent stock delivered per year.

This deal is part of Yisheng’s major strategic move to safeguard its customers and its own businesses by minimizing supply disruption to deliveries of grandparent stock caused by embargos imposed on regions traditionally used for supply, such as the United States and the European Union due to highly pathogenic avian influenza. China banned poultry breeding stock imports from the United States in response to the December 2014 avian influenza outbreaks, quickly followed by further bans on Europe for the same reasons.

Now, nearly two years later, shortages of breeders is causing concerns about the potential effect for supplies of chicken meat in the world's second-largest poultry market. Until recently, the Chinese broiler market had been growing at a significant pace, aided by the successful development of numerous fast-food chains.

Hubbard is well-known to the Chinese market and successfully has been shipping grandparent stock to China since the early 1990s. Over the years, Hubbard gradually increased its business with a small but dedicated team through a philosophy of close collaboration, training and customer service. As Hubbard’s reputation grew at both the breeder and broiler levels, a number of major companies started to take interest in Hubbard’s performance by increasing their parent stock placements. The recent supply disruption caused by the avian influenza bans gave Hubbard and Yisheng the motivation to devise an alternative approach to meeting the Chinese market needs for breeding stock through the development of a series of state-of-the-art great grandparent facilities from which Yisheng will be able to source its grandparent needs.