By 2030, five of the world’s 15 leading economies will be in Asia, suggesting a positive outlook for the continent’s poultry producers.
Growth rates may be lower than in the past, but they will generally outstrip those in Europe and the Americas, providing opportunities for the continent’s chicken industry as incomes and living standards continue upward. Total demand, per capita consumption and production of poultry meat will all rise.
The performances of the poultry companies in these five countries will not necessarily mirror that of each economy, ranked below by size, according to U.S. Department of Agriculture (USDA) forecasts, but growth will stimulate production.
There are, of course, Asian and other companies not based in these economies that, nevertheless, will benefit. However, the companies listed below may be the ones to watch as they respond to economic and population expansion and the rising demand for poultry meat.
China
China will be the world’s second largest economy by 2030. By 2025, it will produce 15.82 million tons of ready-to-cook poultry meat, up from 2016’s estimated 13.11 million metric tons. Poultry meat consumption in the country, according to the Organisation for Economic Co-operation and Development (OECD), will grow from an estimated 11.72 kg last year to 13.25 kg by the middle of next decade.
Key players to watch:
- New Hope Group is not only China’s largest poultry producer but also one of the largest agribusiness enterprises in China, involved in breeding, crops and technology services, among other areas, and has plans to expand at home and in Africa and Europe. Its poultry division, New Hope Liuhe, has revealed that it aims to process in excess of 2 billion chickens annually.
Over the past decade, the company has struck deals across the poultry, feed, pig and aquaculture sectors, among others, in Asian and European markets.
- Wen’s Food Group is the second largest producer of poultry and pigs in China, having consolidated 170 companies to encompass 35,000 family farms across the country. In addition to poultry, recent years have seen the company invest significantly in pig production.
India
India is expected to climb the global economic rankings to become the third largest economy. Its poultry production is forecast to grow from last year’s 4.2 million metric tons to 7.11 million metric tons in 2025. Per capita consumption will rise from 1.74 kg to 2.06 kg over the same period.
Key players to watch:
- Suguna Foods is India’s leading poultry producer, working with more than 23,000 contract farms across 16 states. Active in broiler and egg production, it processes 12,000 tons of chicken meat annually.
Sugana Foods already exports to several countries in the Middle East and Japan. The company, formerly known as Suguna Poultry Farms Limited, has increasingly diversified, moving into dairy production, pet food and soy and feed milling over recent years.
- Amrit Group is a collection of six companies focusing on the production of poultry, eggs and livestock feed which, together, form India’s second largest poultry producer.
Like its competitor Suguna, Amrit has been diversifying. In 2014, it entered the layer breeding market and has also become active in the frozen vegetables and dairy markets.
Japan
Japan is forecast to have weaker growth than most of its neighbors and to fall from the third to the fourth largest economy. Poultry meat production is forecast to grow from 2016’s 1.38 million metric tons to 1.43 million metric tons, while consumption will rise from 13.38 kg per person to 14.27 kg.
Key players to watch:
5. Mitsubishi Corp. is Japan’s largest broiler producer. Mitsubishi’s vast and diverse holdings include feed and table egg producer Nosan Corp. and meat and processed foods producer Yonekyu Corp., which became a subsidiary in 2013. Mitsubishi operates across various markets and in 2017 plans to increase its slaughter capacity at Beijing-based joint venture COFCO to 300 million.
- Nippon White Farm, Japan’s second largest poultry producer, is part of Nippon Ham Group’s fresh meat division. It operates 78 farms, four processing plants and four hatcheries. The company is thought to produce 360,000 metric tons of broiler meat annually, and to have captured 26 percent of the local market.
Indonesia
Indonesia is predicted to be the world’s 13th largest economy by 2030. Last year, the country is estimated to have produced 1.64 million metric tons of poultry meat, and this is expected to rise to 1.91 million metric tons by the middle of next decade. Per capita poultry meat consumption is also expected to increase from 7.12 kg to 7.77 kg.
Key players to watch:
- CP Indonesia, or PT Charoen Pokphand Indonesia Tbk, is the largest broiler producer in Indonesia and is part of Thai conglomerate Charoen Pokphand Group. It slaughters about 80 million broilers per year.
The company controls 66 percent of the national market for processed chicken. The company has also captured 35 percent of the market for day-old chicks. In addition to being the broiler market leader, CP Indonesia is also the country’s largest producer of broiler feed.
- Japfa Comfeed, a subsidiary of Singapore-based Japfa Ltd., is Indonesia’s second largest poultry producer – slaughtering an estimated 37 million head – and is a major integrated food business.
The company has a 22 percent market share for day-old chicks and, in addition to poultry breeding and processing, is also active in animal feed production and aquaculture. In 2016, U.S. private equity and real estate investment company KKR & Co. L.P. took a 10 percent share in the company.
South Korea
South Korea is expected to be the 15th largest economy in the world by 2030. Last year, it produced 792,000 metric tons of poultry meat, while per capita consumption stood at 14.42 kg. These figures are expected to rise to 1.02 million metric tons and 16.15 kg, respectively.
Key players to watch:
- Harim Group, South Korea’s largest poultry producer, accounts for a little less than one-third of the poultry meat sold in the country, selling fresh and frozen product. As well as operating in its home market, the company also has a subsidiary in the U.S.
The company’s parent has recently added shipping and grain trading to its operations, as well as boosted its feed division.
- Easy Bio, primarily a feed additives business, ranked No. 2 among South Korea’s poultry producers, has invested in five poultry companies since the turn of the decade – Maniker, SungHwa Food, DM Food, M&M and Jayeonilga.
The company has made several purchases in the feed and farming sectors and is active in several other Asian markets.
