September 20, 2018

China's poultry sector benefits from demand as swine fever hits country
 

Already embroiled in a trade war with the US, China has to combat against recent outbreaks of African swine fever in the country.

While Chinese swine farms are impacted, it proves to be a benefit for local chicken farmers, Reuters reported. As a result of the outbreaks, prices of China's second most popular meat rose to two-and-a-half year highs. The spike came following weak demand in past years due to food safety concerns and bird flu.

In Shandong, a top producing region, broiler prices in early September reached RMB9.70 (US$1.42)/kg, their highest since March 2016. According to agribusiness consultancy Boyar, average prices for chicken meat rose 13.2% on the year to RMB11.15/kg (US$1.63) in the same period.

Still, stock and broiler prices have eased somewhat as more chickens were sent to slaughterhouses ahead of the holiday period, said Alice Xuan, an analyst with Shanghai JC Intelligence Co. Ltd.

"The recent African swine fever outbreaks have pushed up buying of chicken from cafeteria and restaurants to some extent," remarked Li Jinghui, managing director of the China Poultry Association, who highlighted increased consumers' preference for chicken, especially in affected regions.

- Reuters