China Broiler Weekly - CHINA - In this weeks China Broiler Weekly, eFeedLink report that prices of China breed broilers were sharply lower in week ending Jun 21 after news of a human bird flu case in Shenzhen prompted Hong Kong authorities to impose a three-week ban on live poultry imports from the mainland.

Price Summary

Macau followed by slapping a month-long ban on frozen poultry products from Shenzhen. Meanwhile, prices of AA broiler continued to register gains in the provinces of Sichuan and Henan.

Market analysis

Key characteristics of China's broiler market during the week in review were as follows: AA broiler prices in Sichuan had risen steadily on reduced supplies. Broilers on sale were of better health as improved weather conditions in Sichuan reduced incidences of bird diseases. These better quality broilers thus commanded a higher price.

Broiler prices in Henan continued to rise as farmers had limited supplies to offer buyers. Supply was inadequate amid higher demand. With the three-week import ban by Hong Kong, 440,000 live birds originally scheduled for delivery to the territory will find their way to markets in Guangdong and Guangxi, where demand for broiler is still weak.

The import ban had dealt a severe blow to broiler producers in these regions as most still hold considerable supplies of fast growth (49 days) broilers. Broiler buyers and traders, pessimistic about the longer-term prospects, were reluctant to procure more broilers while producers were eager to sell off their stocks.

Market forecast

China's broiler consumption is seen to decline for the rest of June but broiler prices are still expected to make some gains on lower market supplies in most regions.

In the week ahead, prices of China breed broilers are seen to stabilise. Firmer AA broiler prices in the provinces of Jiangsu, Henan and Sichuan are likely to support prices in Liaoning, Shandong and Hebei.

Source: eFeedLink - 22nd June 2006