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  • Another hard stumble for China's beleaguered broiler sector
  • • A food safety scandal and bird flu outbreak from five years ago has turned into a serious five year depression of China's poultry sector • Since peaking in 2012, output has fallen 20% to levels not seen in 2006 • Instead of 16 millions and per capita consumption of 15kg, 2016 will see only 11 million tonnes and 8kg consumed per person • Substituting inferior domestic breeds in place of white feather breed stock is denting productivity • From balanced trade ten years ago, China is the second largest chicken meat importer after Mexico
  • A battered but changing world dairy market
  • • Dairy market trade flows are being changed by a variety of factors including EU liberalization, Russia's embargo and Chinese investment in non-traditional Australian and New Zealand dairy lines • Oceana producers are seizing market share in China, Russia while the EU takes market share in Southeast Asia • The world market is in truth half recovered: Traditional fatty products like butter, AMF are back to near pre-crash levels but once fashionable dairy powder lines continue to drag down the entire market • Volumes have equaled or exceeded pre-crash levels but with excess supply depressing prices, returns are poor
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