May 29, 2025

China's broiler industry: Profits, losses, and the shift to integration

The average profit of China's chick hatcheries in 2024 was ¥0.74 ($0.10) per bird, which is considered quite lucrative.

In H1 2024, broiler breeder companies enjoyed profitability, as white-feather chick prices remained strong when the national average price was ¥4.02–4.50 (US$0.56–0.63) per chick.

The broiler farming industry maintained slight profitability throughout 2024, with an average profit of ¥0.35 ($0.05) per bird. However, by year-end, live broiler transaction prices dropped to low levels, leading to losses for every broiler sold.

The slaughtering segment was hit by an average loss of ¥0.31 (US$0.04) per bird. Slaughterhouses suffered losses throughout the first 10 months of 2024.

Sunner Development, which has a complete white-feather broiler supply chain under its control, reported a decline in performance in its third-quarter 2024 financial report — with revenue falling 1.18% year-on-year to ¥13.762 billion (US$1.91 billion) and net profit attributable to shareholders dropping 48.25% to ¥383 million (US$53.27 million). However, it showed signs of a strong recovery.

In a forecast released in January 2025, Sunner projected a net profit attributable to shareholders of ¥700–750 million (US$97.4–104.4 million) for 2024, representing a 5.38–12.91% year-on-year increase. Earnings per share were estimated at ¥0.5664–0.6069 (US$0.08–0.08).

The company credited the rebound to consistent quarterly improvements throughout 2024, culminating in net profit surging over 500% in the fourth quarter compared to Q4 2023.

With Sunner's success, integrated development could be the future trend for China's white-feather broiler industry as more companies are expected to consider upstream and downstream integration, forming large-scale enterprises that handle breeder production, slaughtering, processing, and sales.

Still, the current state of the white-feather broiler industry remains volatile, making it difficult for farmers to anticipate market conditions.

To help farmers and companies better navigate this shifting landscape, EFL AG-DATA — a firm delivering intelligent solutions for the feed and animal husbandry industries — offers tools that support timely decision-making and growth through three core services:

    - FarmMetrics Insight: Real-time monitoring of breeding costs and livestock market conditions to help optimise profitability;

    - FarmTECH Connect: Smart farm equipment integration for monitoring livestock activities, health, and diet, enabling intelligent environmental regulation;

    - Resource: A comprehensive digital library featuring feed ingredient information, market analyses, technical reports, and more.

In an industry defined by uncertainty, advanced data and technology can help farms seeking long-term success in China's evolving white-feather broiler sector.

About EFL AG-DATA

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