Little surprise, perhaps, that in looking at which are Asia’s leading poultry meat and egg companies, China dominates. Amongst the region’s five largest poultry meat producers and five largest egg producers five of those companies are based in China.
Given the size of the Chinese market and rising income levels in the country, perhaps the surprise is that there are not more Chinese companies that make it into the ranking for each sector, but that may simply be a question of time. That change may not be that far away.
According to the latest report from Rabobank, poultry meat global markets saw significant demand in the second and third quarters of 2021, however, the exception has been Southeast Asia, where the COVID-19 Delta strain continues to challenge conditions.
Southeast Asia is still suffering under strict lockdowns, the closure of wet markets, lower food service demand, and declining demand from China.
Processing plants have scaled back production due to COVID-19 regulations and there are reports that, in Thailand, for example, there is a shortage of 20,000 processing plant staff out of a total of 110,000 employees. Nine of the top 10 producers have had had to close at least one processing plant due to tough market conditions. While larger companies may be able to weather these difficulties, smaller companies will be hard hit.
Market conditions in Japan, however, are strong, while in India they are improving, thanks to low supply and improving prices, but it is China that is the current exception in Asia.
The local broiler market has performed better than expected, and the industry is benefitting as larger cities close wet markets and consumers switch away from native breeds - all positive for China’s leading broiler producers.
Asia’s leading broiler producers
Three of Asia’s top five broiler producers are headquartered in China, and primarily serve their home market, with Wen’s Food Group standing head and shoulders above the competition. Asia’s second largest broiler producer, CP Group, despite selling into numerous markets, slaughters less than three-quarters of the birds produced by its larger rival.
1. Wen's Food Group
Wen’s Food Group is Asia’ largest poultry producer, and the 4th-largest producer of poultry meat worldwide. Slaughtering 925 million birds per annum, the Yunfu City, China-based company produces chickens, ducks and geese and is also a leading producer of pigs. It has consolidated 326 companies, encompassing 49,000 farms across China and sells in more than 20 provinces and municipalities. In April this year, the company opened a breeding facility in the southeastern province of Guangdong, which is expected to produce 10.5 million broilers annually. Not only is the company a global leader in broiler production but ranks fifth in the world for feed production.
2. CP Group
Slaughtering 685 million birds annually, CP Group, of Bangkok, Thailand, is Asia’s second-largest poultry producer, and owner of an extensive network of agri-food holdings operating primarily in Asia and Europe. The fifth-largest broiler producer in the world’s key products include chicken, table eggs, ducks and egg products. In 2020, its Vietnamese operations opened a US$250 million poultry complex comprising a feed mill, hatchery, farms, and a slaughter and processing plant. The latter will have the capacity to process 100 million broilers by 2023. Earlier this year, the company launched a range of plant-based meat alternatives, stating that it wanted to be a top three player worldwide in the segment within five years. CP is the world’s largest producer of animal feed.
3. Wellhope Agri-Tech
Wellhope Agri-Tech, a subsidiary of Wellhope Shenyang Huakang Xinxin Food Co., slaughters 625 million broilers per annum. This ranks it third in Asia for broiler production and 8th worldwide. Based in Shenyang City, China, the company reports that the number of broilers slaughtered over the first half of this year was 23% higher than that ovefr the same period last. Wellhope is also active in swine and feed production, with feed operations in 11 countries beyond its home market making it the 52-largest feed producer in the world.
4. Suguna Foods
Slaughtering 517 million birds annually, Coimbatore, India-based Suguna Foods is an integrated company marketing live broilers, valued added eggs and frozen chicken products. The 14th-largest broiler producer in the world, the company works with more than 42,000 contract farmers across 18 states. Last year, it announced investments of US$67.2 million in a new hatchery, processing plant, poultry sheds, and a premix plant and feed mills in India, along with hatcheries in Bangladesh and Kenya, markets it entered in 2011 and 2017, respectively. In addition to its chicken, egg and feed operations, the company also operates a retail chain. Its feed operations make it the world’s 56th-largest feed producer.
4. Fujian Sunner Development Company
Said to be the largest producer of white feather birds in China, Guangze-based Fujian Sunner Development company slaughters 510 million birds per annum. Ranked 15th globally, the company is active primarily in its home market, selling frozen chicken to the fast food, food processing and wholesale markets. It has become one of the top three suppliers to KFC and McDonalds in China. In March this year, Yum Brands announced that it had purchased a 5% equity stake in the company.
Wen’s Food Group is by far and away the largest broiler producer in Asia. Its throughput of 925 million birds makes it a top 5 player globally..
Asia’s leading egg producers
While China may be the world’s largest producer of eggs, the top spot in a ranking of Asia’s leading egg producers does not go to a Chinese company. In fact, China is home to only two of the region’s top five largest producers.
1. CP Group
Bangkok, Thailand-headquartered CP Group is not only Asia’s second largest poultry meat producers but its largest egg producer with a flock of 22 million layers – which also makes it the world’s fourth largest egg producer measured by flock size. The company owns its entire egg production chain from breeding to processing. Late last year, CP committed to transition all of its flocks to best practice cage-free production.
2. Bejing Deqingyuan Agricultural Technology Co. Ltd.
With 20.6 million layers, this Beijing, China-headquartered company produces and processes eggs and poultry. The vertically integrated business, the fifth-largest egg producer in the world, has 30 modern farms located in 14 provinces and claims to be the only egg producer in China to have grandparent stock, parent stock and commercial layers.
4. ISE Inc.
Japan’s Ise Inc., headquartered in Tokyo, has a flock of 20 million laying hens. Beyond Japan it has interests in China and the U.S., and is the seventh-largest egg producer in the world. In its home market, in addition to its layer farms, the company has two further processing plants and two liquid egg facilities. The company’s operations extend from raising breeders and hatching through to packing and delivery.
4. Sichuan Sundaily Farm Ecological Food Co.
Asia’s fourth largest egg producer and 13th worldwide, with 13 million hens, is China’s Miayang-based Sichuan Sundaily Ecological Food Co. The company is active not only in egg production, but also produces chicken and other food products. Sichuan Sundaily sells in more than 30 cities throughout China and is a major supplier to companies such as KFC and McDonald’s. It owns a layer research institute and a research center employing over 50 personnel.
5. Kazi Farms Group
Bangladesh’s Kazi Farms is Asia’s fifth largest egg producer and ranked 15th worldwide. The Dhaka-based company owns 12.7 million hens. It is both the largest egg and poultry producer in the country, exports day-old chicks and hatching eggs, and has captured 25% of the local broiler feed market. It has extensive operations ranging from table and processed eggs to a private television channel.
CP Group is not only Asia’s largest egg producer, but the region’s second largest chicken producer and the biggest producer of animal feed in the world.
