Market analysis

News of poultry disease affected consumption of broilers and dampened prices in Jiangsu province.

In the provinces of Shandong and Liaoning, broiler prices were stable as meat plants have stocked up sufficient poultry stocks to meet increased pre-festive demand.

AA broiler prices in Henan province moved higher and brought profit for breeders. Demand for broiler had improved on easing bird flu concerns.

In Guangdong province and Guangxi Zhuang Region, broiler consumption rose prior to the New Year's Day holidays. Consumption of fast growth broilers increased significantly while that for slow and medium growth broilers remained strong. Prices thus stayed at a high level.

Price outlook for China's broiler market remained positive. The latest bird flu outbreak in Dazhu county, Sichuan province was promptly contained and its impact on China's broiler market is not likely to be significant.

Market forecast

Broiler consumption in China is seen to decline in the near term as demand has peaked in the New Year's Day holiday season. As broiler stocks held by farmers remain low, minimal price movement is expected in the week ahead.