April 27, 2004

 

 

Reinvigorating China's Egg Production Industry In the Aftermath of The Bird Flu Outbreak

An eFeedLink Special Report     
 

Below is an abstract of the report: Reinvigorating China's Egg Production Industry In the Aftermath of The Bird Flu Outbreak

 

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Since the bird flu outbreak was brought under control in March, the consumption of poultry eggs in China has recovered to levels seen before the epidemic. The restoration of consumer confidence has slowly picked up because the Chinese authorities were prompt in implementing measures to control the outbreak.

        

However, as poultry farmers in China continue to increase their chicken inventories, the market supply of eggs has outstripped demand and it seemed to have reached a saturation point. This has driven egg prices in China to hover at the current low levels.

 

In many supermarkets in China, eggs that are priced cheaply at RMB2.00 per 500 grams have become the main crowd puller. This scenario has wider implications for China's egg industry, which is now facing a difficult situation.  

 

Currently, 101.2 billion eggs are processed into other egg-related products in China. These 80,000 tons of fresh eggs make up just 0.8% of commercial egg production in China. If those eggs that undergo a second level of processing are included, only 2% of China's egg produce is processed into other food products. This is much lower than the 15-25% seen in the developed countries.

 

With an annual production of close to 25 million tons, or 20 kg per capita, China has been the world's largest producer of poultry eggs for the past 18 consecutive years. Ironically, China's egg producers are currently experiencing a difficulty in maintaining profit levels. With rising costs of feed ingredients, the production costs for egg have increased correspondingly. Most of the egg farmers in China are now caught in a dilemma whereby growing output does not guarantee economic benefits.

 

More contents in this 5-page report include:                    

   

I.     The Key Lies in Improving Profitability of Egg Production

 

II.    Develop A Wide Variety of Egg Products

 

III.   Develop and Build Up Leading Egg Producing Enterprises and Brand Names

 

IV.   Enhance Ability to Cope With Diseases