Research Background

China’s breeding industry had big changes in 2009, of which supply of live pigs turned from a shortage to a surplus, from high profits to losses, prices have dropped sharply compared the same period of last year. Broiler breeding also turned from a high profit in 2008 to a low profit and some losses. Due to inadequate adjustment in prior period, layers breeding continued the loss momentum in 2008, resulting in laying hens stock on hand continued to decline. Beef cattle breeding recovered in the third quarter, cow stock in the main producing areas began to pick up and stop declining. Sheep stock continued to decline.

At the policy level, the state continued to subsidize investment and construction of standard and large-scale farms, issued the “Regulation Plan (Provisional) on Preventing Excessive Price Down of Live Pigs”, and for the first time initiated a response mechanism when the market reached warning point, due to the influence of H1N1 influenza, suspended imports of pork products from H1N1 influenza epidemic areas, and required all imported pork must pass the H1N1 detection. The Commerce Ministry of China conducted an anti-dumping investigation to US chicken, and the US market opened up to China’s chicken products.

Regarding breeding, animal diseases remained serious in 2009, and frequently lead to early slaughter and selling of live pigs and chickens, as well as abnormal elimination of laying hens. But sow stock is still in surplus, while many small hatcheries of broilers and layers suffered heavy losses, an increase of market variables.
Regarding slaughter, the construction of large-scale pig and chicken slaughtering and processing enterprises are continued throughout the country, these enterprises are basically in the north of the Yangtze River. Despite the ban on live poultry trade in South China, local chicken slaughtering facilities are still relatively lacking. China’s corn reduced production in 2009, which will pull corn prices up even through supply is still adequate, thus increasing production cost of breeding industry.
Breeding and slaughtering industries had drastic changes in 2009, BOABC will carry out follow-up analysis in this report, striving to make a clear development direction and provide references for decision-making.

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http://www.aarkstore.com/reports/China-livestock-Market-Review-Outlook-Proposal-2009-2010-37996.html

Jessica
Aarkstore Enterprise
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Email: jessica@aarkstore.com