China's Jilin Deda Co. Ltd facing a build-up in poultry products inventory - CHINA - The poultry industry in China's Jilin province supplies domestic markets in the various regions, and also exports part of its poultry cuts.

However, due to a combination of factors, large-sized poultry production plants continue to see a mild build-up in the inventory of some poultry products. Jilin Deda Co. Ltd, the largest broiler producer in the province, is currently experiencing a 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.
  
  

• Greater production costs for large-sized production plants caused market prices for poultry products to be relatively higher than those of smaller-scale producers.

However, with a steady trend forecast for the China poultry market in 2005, prices of poultry products were expected to move in a narrow range.

Source: eFeedLink - 5th May 2005