China Broiler Weekly

Market analysis

AA broiler

• Improved poultry feed demand after mid-November was an indication that farmers had been preparing to meet increased demand for broilers in the current year-end period.
   
  Of late, farmers were active in releasing supplies but with the year-end festive season drawing closer, demand had stabilized. Increased availability amid stable demand had exerted pressure on AA broiler prices in some regions.
   
• With inclement weather affecting environmental conditions in certain farm areas, some chickens had fallen ill. In view of this, more farmers had thus put up their supplies for sale.
   
• Spill-over effects of improved hog prices had provided some support to prices of other agricultural products. Other than that, steeper feed grains and protein meal prices had also kept broiler production costs high. With these price-supporting factors, AA broiler prices in some regions had thus stayed firm.

• Broiler demand continued to rise steadily in the south, as the Chinese people, particularly those in Guangdong, Guangxi, Hong Kong and Macau, will be celebrating the Winter Solstice Festival on Dec 22 (This festival either falls on Dec 21 or 22 each year). Local traders were active in procuring broiler supplies.
   
  Demand was given an added boost when the Hong Kong authorities announced that daily imports of live broilers from the Mainland will be increased from 20,000 to 50,000 during this festive period.
   
• Prices of China breed broilers were sharply higher as supplies fail to keep up with the strong demand in southern China.

Market forecast

Prices were seen to be stable or higher in the near term amid positive demand. Supplies of AA broilers are expected to increase from current levels.

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