May 5, 2005

China's Jilin Deda Co. Ltd facing a build-up in poultry products inventory
 

Poultry producers in China's Jilin province supply domestic markets in various provincial regions, besides exporting their poultry products. However, due to a combination of factors, large-sized poultry production plants have continued to see a build-up in the inventory of some poultry products.

Jilin Deda Co. Ltd, the largest broiler producer in the province, is currently experiencing an inventory build-up in products like breast meat, chicken skin and minced poultry meat.

The surplus supply has been attributed to the following:

• Export prospects were not favourable, which led to supply outstripping demand in the domestic market.
  
  
• Higher production costs for large-sized production plants caused market prices for poultry products to be relatively higher than those of smaller-scale producers.