China chicken production to grow moderately - GAIN

Mainly large-scale producers plan to expand production
calendar icon 10 September 2024
clock icon 1 minute read

Post forecasts chicken meat production in 2025 to grow at a faster rate than in 2024, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report.

The growth will mainly result from industry responding to market signals as producers increase white broiler production and offer it as a more competitively priced protein in relationship to pork. Yellow broiler production is forecast to stay at similar levels to 2024 estimates.

Pork declines drive white broiler production

As white broiler chicken is often a good substitute for pork, producers will likely raise white broiler prices gradually as pork prices have climbed in recent months. As broiler prices climb, some white broiler producers may increase capacity with new facilities or manage operations differently to increase existing capacity utilization.

Chicken prices in the first half of 2024 stayed flat as there was no appreciable demand shift. However, in June 2024, following rising pork prices, chicken prices started trending higher.

Producers that have plans to expand production will mainly be large-scale, vertically integrated companies. In 2024, some expansion was put into operation while more facilities are scheduled to become operational in 2025 and 2026. These operations are normally part of a vertically integrated business that includes broiler breeding, slaughter, and processing.

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