USDA forecast record poultry production in China
Poultry production in China is to reach a record level of 14.85 million tonnes of chicken meat in 2020, according to the United States Department of Agriculture (USDA). This comes after another year of increased production, 13.75 million tonnes (+18% over 2018). This aggressive expansion is going to reduce the deficit of animal protein in the Chinese market, despite the fact that the domestic demand for poultry is low due to the coronavirus.
Also, it is seen as a factor meant to reduce reliance on imports amid recent fears about the safety of foreign meat. Last week, chicken wings from Brazil tested positive for the coronavirus.
“Currently the price is so low. I don’t think it’s just weak demand but it’s also the sufficient supply,” said Pan Chenjun, senior analyst at Rabobank, according to Reuters. China slaughtered 9.3 billion chickens last year, including 4.4 billion white-feathered broilers, favoured by fast-food chains for cheap, plump meat.
Industry leaders like Liaoning Wellhope Agri-Tech, Yum China KFC-supplier Fujian Sunner Development and Thailand’s C.P. already had expansion plans to meet Beijing’s goal for more integrated food production. Chicken meat is seen as the most affordable option to replace pork in the Chinese market. Pork production in China has dropped significantly due to ongoing ASF crisis that started in August 2018. With pork prices on the rise, consumers are expected to permanently put more chicken in their diets. Currently, several large poultry projects are in development in China in order to increase production.
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