Poultry Meat Production in China Is Expected to Grow in the Next Year

19.08.20210

National poultry consumption and poultry meat production in China is on the rise, so the product prices are recovering. Simultaneously, the businesses are boosting their production capacities. This is expected to result in a significant surge of poultry meat production in China in 2022, as well as total export volume increase by 4% and import volume increase by 3%.

Due to the decrease in pork prices on the China food market, many consumers shifted from chicken to pork. This resulted in decline of demand and lower prices for poultry meat, causing significant losses suffered by the small and medium poultry businesses and reduced business profitability. According to the forecasts, in 2022 major enterprises will acquire the most market share lost in 2021 to the benefit of smaller broiler meat producers.

Poultry Meat Production in China
Наращивание объемов птицеводства
Куриные лапы Китайская кухня

Poultry Farming Volume Boost in 2022

In the recent years, several companies announced their plans to boost the production volume and proceed with the active breeder poultry farm development. It is expected that in 2020, the poultry meat demand will outpace the national consumption driving the poultry farm product price rise as compared to 2021. The recent investments into novel technologies and poultry business development, as well as the entry of new players on the poultry market are forecasted to cause significant growth of the number of broilers farmed in China.

Production Capacity Increase by 20%

In the first six months of 2021, China imported more than 500 000 grandparent flock breeders. These investments were mostly made by the major companies with production capacities of at least 100M broilers per poultry facility per annum. New facilities expected to be commissioned in 2022 will boost the total poultry meat production by 20%.

Poultry Meat Price Rise

The several factors are anticipated to affect the broiler chick meat and general poultry price in 2022, COVID-19 pandemics resulting in the growing consumption of fast foods and delivery foods. The consumption shift towards food delivery instead of home cooking or eating at the restaurants and food outlets drives growing demand for poultry meat. The growing popularity of chicken as more diet food is also supported by the novel healthy eating tendencies. Moreover, pre-cooked chicken meat and ready-to-eat food sales surged during COVID-19 pandemic and are expected to remain on the rise even after global healthcare emergency resolution.

Source: Poultry World

Poultry Meat Import and Export

Despite growing domestic chicken meat production, the import supplies are still expected to increase by 3% up to 930 000 tons. It is anticipated that the demand will outpace the local production capacities, and the import poultry prices will still be 20-50% lower even despite the domestic price decrease. This can be explained by different food attitudes and preferences across the globe. Thus, for example, in the USA, the chicken feet are barely used for food, while in China this part is appreciated and valued even higher than the rest of the chicken. Moreover, the imported feet are more popular than those produced locally thanks to their size, so have a higher consumer price.

The broiler meat export, in its turn, is expected to rise by 4% and hit 440 000 tons in 2022. The chicken meat supply to the major export markets (Japan and Hong Kong) are expected to grow thanks to the public catering sector’s recovery to the pre-COVID level. China mainly exports pre-processed and pre-cooked chicken meat products to Japan and refrigerated products to Hong Kong.

TEXHA Poultry Equipment in China

In 2021, TEXHA commenced construction of the major MaxGrow facility for slatted-floor broiler farming based on Cage Free technology. This poultry plant is expected to be commissioned exactly in 2022. Chicken meat produced using Cage Free technology complies with the international poultry welfare requirements and standards, so it is allowed for import into United States and EU countries. This creates more opportunities for Chinese chicken meat export and helps to boost its competitive edge.

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