Trend of poultry meat production distribution in China in 2004
In 2003, the output of large-scale meat poultry production enterprises accounted for about 46% of total meat poultry output while the output of meat poultry accounted for about 26%~30% to total meat output in China. Of which, 80% were broiler.
Recently, the north China rural investigation showed that the number of medium- and small-size rural households (raising less than 5000 birds) raising broilers was reducing, but the number of bird (annual marketed bird exceeding 10,000 bird) per rural household is increasing. BOABC held the view that it might be possible that China¡¯s broiler production distribution is transferred to small companies, and the number of broilers raised by specialized rural household will continue to increase. The reasons are as follows:
¢Ù At present, poultry industry is low profit industry in China. The state own newly built chicken farms have very high investment, with high feed cost price, which makes the price of breeding chicken too high. During the SARS period, and the period of high soybean meal price, large enterprises are deficit in general; while medium-size and small-size enterprises had to sell broilers in surrounding areas or reduce broiler population to reduce such losses.
¢Ú Due to the drop of broiler profit in export, broiler slaughter enterprises basically took domestic marketing as the main business, while the risk of large-scale broiler enterprises had increased, and gradually the situation will turn to medium-size and small-size as the major producer of broilers.
At present, the large-size boiler producing enterprises with state investment as the major investment pattern have transferred the mechanism, such as the Zhucheng Foreign Trade Company, Shanghai Dajiang and Guangdong Wenshi Group. The organization pattern has gradually transferred to ¡°Company + Rural Household¡± or the production pattern of husbandry cooperatives, which mainly provide service such as breeding chicken, hatchery, feed processing, etc. The rural household will share the market risks. The company undertakes integrated operation and will buy back the product for unified marketing and the profit will be gained from the selling of deep processed broilers.
¢Û In grain producing areas, specialized poultry raising rural households combine adjacent rural households to form small areas of integrated husbandry, sign husbandry contract with the slaughter company and form integrate operation models consisted of medium- and small-size rural households. This can not only reduce cost but also guarantee the quality. This will become the major channel of market broiler supply in 2004.
¢Ü Due to the demand of environment protection and disease control, large-size cities and suburbs will quit meat poultry production. The policy of urban ¡°vegetable basket¡± project will change. The original designed pattern of solving urban non-staple food supply will be shifted to regulating market as the main factor. The quantity of inter-provincial transport or import meat poultry will increase and North China, Northeast China and Southwest China will become major meat poultry producing bases
Source: Feed Fair, No. 1, 2004, p. 49


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