China Broiler Market Weekly - CHINA - Broiler prices in China were generally mixed in the week ending Aug 10, say eFeedLink in their Weekly China Broiler report.

2. Market analysis

Shandong and Liaoning
AA broiler prices in Shandong and Liaoning provinces rose marginally in the past week. With the recent outbreak of pig bacteria in Sichuan province, consumers have avoided consuming pork, thereby resulting in increased demand for broilers. This has helped to prop up broiler prices in the two provinces.

Henan
AA broiler prices in Henan province continued to move lower. Continuous rainstorms in the past week have resulted in severe floods in some parts of the province, affecting the delivery and distribution of broilers. With high summer temperatures and high humidity in recent days, broilers were more vulnerable to disease outbreaks. Thus, many farmers were prompted to increase the number of broiler being released into the market, causing supply to outstrip demand in the region.

Fast (49 days) growth China breed broiler prices have slipped while prices of medium (70 days) growth China breed broilers were generally stable.

Guangdong and Guangxi
China breed broiler prices in Guangdong province edged higher in the past week. Pork consumption declined due to the recent outbreak of pig disease in Sichuan, while demand for poultry meat has increased.

Demand for fast growth China breed broilers registered the sharpest rise in recent days. With an increased number of fast growth broilers released into the market in earlier period, current supplies were tight. This has led to demand outstripping supply, and prices of fast, medium and slow growth China breed broilers rose by RMB0.6/kg, RMB0.2/kg and RMB0.15/kg respectively.

Broiler prices in Guangxi province remained stable. Although the number of broilers released into the market has fallen in the past week due to increased market entry of broilers in earlier period, current demand was not significant, particularly in the countryside. Consumers in some parts of Guangxi were comparatively less averse to consuming pork, while those who were concerned generally preferred lower-priced broilers. However, prices of medium growth China breed broiler rose marginally in recent days.

3. Market forecast

Concluding, analysts expected broiler prices in China to rise marginally in the near term. However, prices were seen to remain generally stable in Henan and Guangxi.

Source: eFeedLink - 12th August 2005