China’s poultry industry production, sales weak in 2018
A lack of consumer confidence coupled with difficulties in accessing genetic stock will lead to lower production and sales for China’s poultry industry this year.
China’s production of chicken meat is expected to decline further in 2018, contracting to 11.1 million tons from the 11.7 million tons estimated for 2017, while demand is also predicted to be lower than in recent years, forecasts the USDA.
Read the entire report about China's poultry production exclusively in the February issue of Poultry International.
The Chinese chicken meat market is experiencing difficulties on the demand and supply sides, with producers facing difficulties sourcing stock, ongoing disease concerns, and other production and marketing issues. On the demand side, consumer confidence in chicken meat remains dented, while several major purchasers are moving out of the country.
The difficulties that China’s poultry producers experienced in sourcing genetic stock through 2017 are expected to continue in 2018.
With disease-related trade restrictions halting supplies of genetic stock from several countries, only Canada and New Zealand are supplying white-feathered grandparent stock to China and, although imports from these countries have risen, they have been unable to match previous supplies.
Imports of genetic material have been at their lowest for several years and, while China is now investing in its own genetic stock, this shortage is expected to continue affecting broiler production throughout 2018.
Also on the supply side, however, China’s broiler production is being hit by the tighter application of environmental standards in the country.
China has created “forbidden zones” near environmentally sensitive areas, with the aim of reducing land and water pollution. Farms operating within forbidden zones have to either close or relocate.
The most important region for white-feathered bird production is Shangdong Province, home to Shougang City. More than half of the almost 2,000 white-feathered poultry farms around the city are located in forbidden zones and, according to the local environmental plan, should have ceased operation by the end of 2017.