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It’s predicted that broiler raising in China will suffer loss in Q4 as a whole

China Agriculture Report By CnAgri2017-10-17 10:05:45China Agriculture Report Print The gross profit of raising white broiler was about 0.50yuan/bird in September, decreasing 3.53yuan/bird month on month. The decline in breeding profits mainly are caused by following factor.
(1) The slaughter of live broilers increased. Since the beginning of March, the raising profit of white broiler has turned better and farmers have been active in restocking, which led to high slaughter of live broiler. In September, the slaughter of live broilers increased 8% month on month. 
(2) The prices of chicken products declined. In September, the prices of chicken products were decreasing. The prices of chicken breast products declined 1200-1300yuan/ton, while the prices of chicken wing middle joint sharply dropped by 3500-4500yuan/ton. Due to sharp decline in slaughtering profits, food factories were not active in purchasing live broilers.
(3) The purchasing price of live broiler decreased. In September, the purchasing price of live broiler was 7.31yuan/kg, down 9.01% month on month and 7.05% year on year.
According to BOABC’s recent market research, some medium and small scale farms didn’t restock chicks after selling broilers under the influence of environmental policy in Shandong province, Hebei province and Henan province, but the consumption of broilers of the whole society still is weak.
It’s predicted that the prices of live broilers will keep fluctuating in Q4, and raising white broiler will suffer small loss. But with the increase in chicken consumption in holidays at the end of Q4, the prices of live broilers will increase, and raising profit will turn losses into gains. 
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