November 11, 2014
High feed costs, sluggish demand to keep China''s 2015 poultry output flat, says USDA
China''s poultryproduction next year is forecast to remain flat at 13 million tonnes on the back of high feed costs and sluggish demand.
A recent report by the Foreign Agricultural Service of the US Department of Agriculture says feed prices will remain historically high in 2015 due to the government''s price support for corn, a major feed component.
While China''s demand for other meats is rising, poultry consumption is projected to remain flat at 12.8 million tonnes in 2015 as concerns over avian influenza, and a number of domestic meat processing scandals, have dented consumer confidence.
Dragging down demand for broiler meat is the lower prices of pork, the report said.
This year, China''s broiler imports are projected at 240,000 tonnes, thanks to an increase in the volume of shipments from Brazil. They are, however, set to drop 2% to 235,000t in 2015 due to a slowdown in domestic demand.
From January to July this year, Brazil had a 49% of the import market, with the US holding a 43% share, and Argentina 6%. Over the same period, Chinasaw 53% of its exports go to Japan, 27% to Hong Kong, 4% to the EU and 7% to Malaysia.
Exports are forecast to rise 5% to 460,000 tonnes next year, driven by robust demand from major markets, in particular Malaysia, where demand from the food vending sector has seen increased demand for chicken cuts.
Exports for 2014 are predicted to reach 440,000 due to strong demand from Japan.
The Chinese broiler industry is also keen to obtain access to the Russia market and is seeking assistance from the Chinese authorities, the report added.