BOABC Viewpoint: H7N9 aggravates losses of broiler breeding

By CnAgri2017-03-06 13:11:23 Print

Since the beginning of the winter in 2016, H7N9 has shown characteristics of cases growth, wide distribution and high rate of individual outbreak. As epidemic situation is severer, some southern regions stopped poultry businesses in wholesale market and agricultural trade market, which led to continuous decrease in prices of yellow broilers which were seriously unsalable. Affected by slow sales, high inventory and less working labor, the operation rate of north slaughterhouses only was about 40%, which led to oversupply of white broilers and sharp decline in prices of broilers with feather.

(1) Farmers with slaughter of 30,000 yellow broilers suffered a loss of about 150,000 yuan: in this week, the prices of fast-growing yellow broiler, moderate-growing yellow broiler and slow-growing yellow broiler respectively are 6.5yuan/kg, 7.6yuan/kg and 10.2yuan/kg, separately decreasing 41%, 39% and 31% year on year; Farmers of yellow broilers suffer great losses, about 5-6yuan/bird. Taking medium-size farmers for example, the loss of this batch of broilers is more than 150,000 yuan, and basically passes the total net profits of last year.

(2) Farmers with slaughter of 160,000 white broilers suffered a loss of about 800,000 yuan: in this week, the price of live white broiler is 4.22yuan/kg, decreasing 46% year on year; farmers of white broilers suffer great losses, about 5.14yuan/bird, which is the worst benefit. Taking medium-size farms with annual slaughter of 160,000 birds for example, the loss of this batch of broilers is up to 800,000 yuan, and basically is twice of the total net profits of last year.

(3) Large breeding enterprises suffer a loss of over 10 million yuan and even more than 100 million yuan: though large scale enterprises have built slaughter workshop, they can’t slaughter and process all live poultries affected by slaughtering capacity, off duty of slaughterer and limitation of storage space. In addition, the sales of chilled fresh chicken are not optimistic. Since January, Sandeli Animal Husbandry Development Co., Ltd. has lost 32 million yuan, while Changzhou Lihua has lost 115 million yuan.

BOABC analyzes that a few farmers’ enthusiasm about has decreased sharply affected by this round of epidemic situation, but most farmers went through sharp growth in prices after avian influenza and expects that the prices will rise greatly later, so their restocking situation keeps stable. It’s predicted that the production of broilers will decrease slightly in the second half of this year, chicken demand will rise again, broiler price will increase, and breeding benefit will turn better.