March 22, 2004

China's Poultry Products On A Steady Price Recovery

An eFeedLink Exclusive Report
 

Of late, prices of poultry products across China are steadily picking up. With China's Ministry of Agriculture having gradually lifted the restriction imposed on bird-flu affected areas across the country, demand for poultry products has begun to recover in past weeks after having hit rock bottom in early February. Similarly, recovery of poultry production in rural areas has also been evident.

On March 16, China's Ministry of Agriculture has lifted the restriction imposed on the last two bird-flu affected areas in China. With this latest announcement, China is now free from the avian influenza. According to the Ministry, prices of chicken eggs and meat in China are now on track to return to the pre-bird flu levels. Prior to the bird flu outbreak, prices of young bird averaged between RMB1.80-1.90 per bird and now the prices have gradually recovered to RMB1.70-1.80 per bird.

Meanwhile, prices of chicken eggs currently range between RMB4.00-4.30 per kg, which are 12%-16% below the pre-bird flu period and an increase of 5%-7.5% compared to the same period last year. Generally, prices of chicken eggs in China are on track to return to normal levels.

A spokesman from China's Ministry of Agriculture pointed out that the country's compensation policy to poultry farmers is fair and transparent to the public, and will modify compensation guidelines in accordance to the different local conditions. The amount of compensation is usually higher than the market prices of poultry products during the bird flu period.

Besides, the Chinese government has also implemented eight measures to help the poultry industry and related enterprises through a range of policy implementation, such as financial loan, reduced interests and tax subsidies.

With these policies, China's poultry industry is now on the road to recovery from the effects of the bird flu outbreak. At present, prices of poultry products in China are now closing in on the pre-bird flu levels. Poultry farmers are seen raring to increase their poultry inventories.