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Inventory of parental breeders decreased, feeding profits of commercial broilers rose sharply, and prices of broiler chicks increased largely

China Agriculture Report By CnAgri2018-11-09 14:17:27China Agriculture Report Print Affected by various factors in upstream and downstream of the industrial chain, the price of white broiler chicks broke 6 yuan/bird and reached 6.12 yuan/bird at the end of October 2018, which increased by 38% from the previous month and by 288% year-on-year.
(1) Inventory of parental breeders has remained low. The inventory of parental breeders has been keeping low since the second half of 2017. According to BOABC’s monitoring data, the inventory of parental white broiler breeders which are in egg producing period was 31.60 million sets in October 2018, which was lower than the normal level of 35 million sets. For the gap of parental breeders, the prices of parental chicks rose significantly, from the lowest price (8-9yuen/set) in June and July, 2017 to 41yuan/set in October 2018. 
(2) Demand drove up prices of live broilers: consumption substitution caused by the spread of African swine fever made chicken consumption relatively booming. From January to October 2018, the price of live broilers averaged 8.28yuan/bird, which was much higher than the average price of 6.82yuan/bird in last year. 
(3) The profits of raising commercial broilers increased greatly. From January to October 2018, the gross profit of feeding commercial broilers was roughly 2.81yuan/bird, which was much higher than the average profit of 0.78yuan/bird in the year before. Good raising profits of broilers raise farms’ enthusiasm on restocking, resulting in growth in purchasing volume of commercial broiler chicks. 
At present, parental breeder inventory is low, and will not see significant growth in a short time. In addition, consumption demand pulls live broiler prices up continuously. It’s predicted that the price of chicks will be at 4-6yuan/bird in November and December, a high level.

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