MLBA16: August / September 2010
Breaking the cycle - The giant eastern egg producer
Eggs have always been an economical food product in the Chinese diet. Since 1985, the layer industry in China has been on a steady rise, making the country the top egg producer in the world.
However, the industry has had its fair share of ups and downs, with diseases such as bird flu and Newcastle Disease being the major threats in the 1990s. Since then, massive outbreaks have been dramatically reduced with the concerted efforts of the government and industry participants. Yet during this time, market volatility has taken over as the greatest challenge for industry players.
Despite its turbulent history, layer farming is still a profitable business in China, with an average profit of each layer reaching RMB15 (US$2.21) or more, over a span of one and a half years. This includes the earnings from selling the layer off as a broiler, in stable market conditions.
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