China duck breeder, processor and distributor Anhui Taiyang Poultry Co. Inc. has reported a net income of $1.5 million for the first quarter of 2011, a 214% increase from the same time in 2010.
The company's breeding unit contributed significantly to the results, increasing its revenue by 265% (to $4.8 million) in the first quarter of 2011 compared to 2010. Anhui's feed unit and food unit both decreased, with the feed unit generating negligible sales and food unit revenue dropping by 88% to $741,000 in 2011 compared to $6.3 million in 2010.
"During the 2011 first quarter, we continued to enjoy a high price for ducklings at an average of RMB 7.05 (US$1.07) per duckling and RMB 7.68 (US$1.17) per kilogram for processing ducks," said Wu Qiyou, CEO and chairman of Anhui's board of directors. "For this reason we continued to sell a higher proportion of ducklings through our breeding unit, which carried higher margins at current prices than equivalent food product sold by our food unit, where prices remain relatively stable."
The company said it expects to follow industry trends closely for the remainder of the year.