China Broiler Market Weekly - CHINA - In this weeks broiler report, eFeedLink say that news of a bird flu outbreak in Heishan county, Liaoning province has sent prices of AA broilers and China breed broilers plummeting in the week ending Nov 9.

2. Market analysis

In the various regions, broiler consumption has also fallen more sharply than before. In Xiangtan (Hunan province) and Beijing, trade in live poultry and birds has been banned, a part of the preventive measures put in place by the authorities.

Consumers have substituted pork for chicken in their diet and this has quickened the pace of broiler price decline. Poultry producers were anxious to offload their broilers. As demand had stayed weak their efforts could only result in steeper price falls. The recent recovery in broiler prices in some regions has failed to sustain after the latest outbreak.

In Hebei province, there was little change in broiler prices in the past week. Owing to the bird flu outbreak, only local broilers were sold in the province. The light transaction activity also has little effect on the broiler prices.

The agriculture and health ministries are keeping a close watch on the bird flu situation. Although the outbreak has been brought under control, it will be a while before consumers regain their confidence in resuming broiler consumption.

3. Market forecast

The sudden outbreak of bird flu in Liaoning in the past week had adversely affected China's broiler market. Despite ongoing efforts by the government authorities to ensure that the situation is put under control, fears among broiler producers and consumers are likely to keep prices down in the near term.

Source: eFeedLink - 10th November 2005