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Even large scale yellow broiler enterprises cut capacity, they couldn’t fundamentally change the situation of great lo

China Agriculture Report By CnAgri2017-07-03 11:15:39China Agriculture Report Print

Affected by H7N9, yellow broiler industry suffered great loss,. According to preliminary statistics, yellow broiler industry lost more than 5 billion yuan in the first half of 2017, which made the industry facing development crisis. Currently, H7N9 is increasingly serious, many provinces prolong the time of closing market, the prices of yellow broiler with feather drop by 30% year on year, suffering a loss of about 3yuan/bird. It’s predicted that the loss will increase in Q3.

In early June, Wens Group reached self-saving consensus with yellow broiler breeding enterprises in Guangdong and Guangxi to reduce capacity.

1.) Wens Group: in the first half of 2017, Wens Group initiatively reduced about 15% capacity; and after June, it will cut a production capacity of 18% , and about 100 million chicks will be reduced; the production capacity in central China and southwestern area will decrease about 23%.

2) Chunmao Group: the production capacity was reduced by 20% in 2017. In addition, the Group develops “Quan Shang Pin” catering business and hog breeding business to accelerate the upgrading and transformation of enterprise and adapt to new policy.

3) Guangxi Shenhuang Group: the breeding quantity of yellow broilers in 2017 decreased by 30% from 2016.

4) Besides large enterprises, other 20 companies also agree with to reduce capacity to realize self-saving, and some enterprises even reduced by 30-50% in capacity.

It’s predicted that H7N9 will break out continuously in this winter and next spring, so BOABC thinks that besides cutting production capacity, yellow broiler industry should develop new breed which is sold in fresh, and enterprises should change profit model, improve whole cold chain control, expand marketing channel and guide consumption through building brand.


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