After, the protein
deficiency in China due to the outbreak of Africa Swine Fever, the consumers
got shifted to poultry, which was restricted in supply due to a shortage of
grandparent stock. However, this scenario got changed when China increased its
imports of grandparent stock to cover up the rising demand. The increased
imports of grandparent stock signal stronger growth in white bird production in
upcoming years, which signals towards better poultry industry in the country.
Based on the data
collected from Boyar, the total GP stock supply in China, which include both
domestically produced breeding stock and imported stock, is up by 49 % on a
year-over-year basis. Currently, along
with high pork prices amid the ASF outbreak, poultry prices have also been
pressured up. The prices for retail chicken have reached record highs; the
average retail prices for chicken have reached a record high and are up 16% as
compared to the price a year ago.
Besides the increase
in GP stock imports, the country has also experienced an increase in poultry
imports for the first seven months of 2019 as compared to the first seven
months of the previous year. The total poultry imports till July 2019 reached
424,000metric tons, a 51% year-over-year increase. The average import prices
also hit a record high in July. According to the data collected by Robobank,
most of the country's imports were originated from Brazil, but its share of
China's imports dropped from 86% in the first half of 2018 to 70% in 2019
because of increased trade barriers and regulations. Argentina and Thailand are
the countries, which too benefit from the current Chinese poultry market
condition and increased their share of China's imports to 10%.
Impact on high poultry imports on local farmers:
China's market
with its huge population, speedy economic growth, and foreseen dietary
transformation, deliver very moving dynamic opportunities. At present, poultry
products sit on the top of meat consumption in China, consumer demand for
chicken soars as sick pig scare. This scenario has not just changed the
dynamics of the global meat market but has also impacted the local farmers
especially the ones who have switched from raising pigs to chickens. The increased poultry imports have somehow
reduced the demand pressure in the market but it has also decreased the prices
that local farmers get for their birds due to a rise in supply.