January 13, 2025

 

Domestic broilers expand market share in China - and head overseas

 

 

In 2021, since three Chinese white-feathered broiler breeds — namely Shengze 901 (SZ901), Guangming No. 2, and WOD 188 — were officially approved for production in China, their market shares have expanded rapidly.

 

By the end of 2023, the market share of domestic white-feathered broiler species increased to 25.1% and is expected to reach more than 30% in 2025.

 

According to Sunner Group, China's largest integrated white-feathered broiler chicken producer, as of the end of August 2024, Shengze 901 was present in 14 provinces across the country, with a total of 32 million sets of parent stock (PS) breeder broilers and 3.3 billion commercial stock broiler in the market, capturing more than 20% of the domestic market share.

 

Meanwhile, the company also expanded overseas by exporting to Africa.

 

Previously, China's broiler production relied mainly on imported broiler breeders. In 2021, the top three varieties of breeders (Cobb, AA, and Hubbard) were from overseas, accounting for nearly 85% of the market share in China.

 

Since 2022, several exporting countries of major poultry breeders, including the United States, have reported outbreaks of highly pathogenic avian influenza (HPAI), resulting in strict controls on the import of breeder chickens. In 2022, China imported 368,800 sets of white-feathered grandparent stock (GPS) breeder chickens, a significant drop from 1.2234 million sets, 1.0028 million sets, and 1.24 million sets, respectively, in 2019-2021.

 

As imports decreased, the market share of Shengze 901 in the domestic GPS broiler breeder market rose steadily in 2022. In 2023, an upgraded version of Shengze 901 (SZ 901 Plus) with a higher feed conversion rate comparable to international standards was launched.

 

Since 2021, the market share of domestic white-feathered broiler breeders in China increased from 0% to 25%. This is expected to grow further in the coming years.

 

Chinese broilers venture outside China

 

Meanwhile, 1,000 birds of WOD 188 parent stock broiler breeders and 15,500 Jinghong No. 1 layer hens produced by Beijing Huadu Yukou Poultry Industry Co., Ltd. were exported to Tanzania in 2023, China’s first export of local poultry species. According to Beijing Yukou Poultry, a customer in Tanzania decided to repurchase from the company, showing that new Chinese white-feathered broiler breeds are gradually gaining recognition overseas.

 

On August 21, 2024, 172,800 Guangming No. 2 white-feathered layer breeders were shipped from Guangzhou to Pakistan. The shipment was expected to produce more than 50,000 sets of Guangming No. 2 parent stock breeder chicken and more than seven million commercial broilers in the future. This will supply more than 21,000 tonnes of chicken meat to the country.

 

Guangming No. 2 was jointly bred by the Institute of Animal Sciences of the Chinese Academy of Agricultural Sciences and Guangdong Xinguang Nongmu.

 

On September 5, 2023, at the 2024 Summit Forum on China-Africa Cooperation, Fujian Sunner and a Zimbabwean white-feathered broiler producer signed an agreement for the former to supply 160,000 sets of Shengze 901 parent stock breeder chicks to the latter.

 

On October 24-25 last year, at the 4th Forum on Sci-Tech lnnovation in Livestock and Poultry Breeding & Seminar on White Feather Broiler in Beijing, Mohammad Ayib, the country manager of the Pakistan Poultry Trade Organization noted that "90% of Pakistan's breeders come from the United States, Europe, and other countries and regions".

 

According to Ayib, prices for those breeders were very high, which elevated "the pressure on the development of (Pakistan’s) poultry industry.

 

"We look forward to more high-quality breeders, which will be of great help to the development of Pakistan's poultry industry," he said.

 

"The first batch of white-feathered broiler breeders imported from China surprised us very much," Ayib added. "Not only is the price cheaper than other international varieties, but the production performance has also reached international standards. It is very popular in our domestic market and the demand is very huge. Moreover, the arrival of a large number of white-feathered broilers has helped to advance Pakistan's broiler industry and economy, and will even change the status quo of Pakistan's broiler industry."

 

The poultry industry is one of the major agricultural industries in Pakistan, with an annual growth rate of 10% to 12% and an output value of about Rs.198.3 billion (US$711 million). The sector has created jobs and income for about 1.5 million people.

 

However, the Pakistani industry still has a lot of room for development.

 

In terms of breeders, there are currently about 15,000 poultry farms in Pakistan, with inventories ranging from 5,000 to 500,000, birds. Most of the poultry farms are backyard farms in rural areas.

 

In terms of consumption, although chicken is the main meat consumed in Pakistan, accounting for 40% to 45% of total meat consumption in Pakistan, the country produces 1.5 million tonnes of chicken each year, with per capita meat consumption of only 3.8 kilogrammes.

 

EFL AG-DATA is a startup incubated by Singapore's Nanyang Technological University's Innovation and Enterprise Company (NTUitive) Incubator Program. It is developing an agricultural hub that will revolutionize the feed-to-meat supply chain in China and Southeast Asia countries through data-driven solutions. EFL's mission is to empower farms through innovative data-based services that solve complex problems and enhance productivity.

 

- EFL AG-DATA