January 19, 2022

Opportunities and challenges for China's white feather broiler industry

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White feather broilers were brought into China by CP Group when it opened its market in the 1980s.

Its production volume of white feather broilers has surpassed that of yellow feather broilers, as the former became the biggest broiler breed domestically.

One key difference between the Chinese farming model and that of the West is China's high reliance on caged farming compared to the United States' free-range farming. The Chinese model is also more labour intensive.

Yellow feather broilers and other native species have been the choice ingredients in Chinese cuisine. White feather broilers are mainly meat products sold frozen. It is mostly used by fast-food restaurants, and school and factory canteens. Chilled or fresh white broiler products are rare and those few seen in supermarkets are sold mainly by Tyson.

In 2020, the volume of China's deep-processed white feather broiler products was 28.6 billion tonnes. To save costs and improve efficiency, the local F&B industry favours white broiler products.

Soaring demand for fast food and home-delivered meals are potential drivers of growth for the white feather broiler industry. Consequently, the demand for processed white feather broilers is expected to exceed 50 billion tonnes in 2024.

However, a new development in the broiler industry is posing challenges to the current white feather broiler producers. With China importing all its white feather broiler breeders, the supply of broiler breeders could be affected. Farmers were compelled to resort to forced moulting to prolong production lifespan and maintain the population of grandparent stock breeders, potentially affecting the quality of parent stock and commercial broilers. Furthermore, trade frictions between the United States and China, and other relevant issues have triggered concerns about the stability of breeder supply, as breeders sourced mainly come from US companies.

Meanwhile, in November last year, China has certified three domestically produced white feather broiler breeder types. Fujian Shengnong, the largest integrator of white feather broilers in China, has started using its own broiler breeders.

- DAVID LIN