China Broiler Industry Research and Investment Analysis Report (2017-2018)

Based on continuous accumulation of data, persistent tracking on industrial changes and in-depth researches for more than 20 years, BOABC will provide you with a valuable analysis report on broiler industry and investment. (1) The prosperity of white broiler industry declines, and breeder link suffers heavy losses in 2017. Affected by H7N9 epidemic situation, terminal market consumption and national environmental protection policy, the prices of white broiler and relevant products fluctuate sharply in 2017, raising link keeps profitable benefiting from the decline in feed prices, but breeder link suffers heavy losses. From the perspective of the performances of enterprises in 2017, MINHE and Yisheng respectively suffered losses of 280 million yuan and 330 million yuan; the net profit of Sunner Development and Xiantan respectively was 310 million yuan and 190 million yuan, decreasing 54% and 59% from the same period last year. (2) The degree of scale raising of white broiler continues to rise, and the concentration rate of slaughtering enterprises is high. With the rising of labor cost, the increase of environmental protection requirements and the changes in consumption mode, the degree of scale raising of broilers further increases, and the slaughter of standardized farms with annual production of more than 100,000 birds account for about 40% of the total national slaughter in 2017. Broiler industry is the most matured industry with highest organization and scale degree in China’s animal husbandry, and has many large-scale enterprises, and top ten enterprises totally contribute to more than half of slaughtering volume of white broilers. (3) White broiler enterprises successively increase investment in terminal. White broiler capacity has limited growth space, and new increased infrastructure investment projects are less. Large-scale enterprises successively increase investment in terminal and invest food processing and central kitchen projects. Sunner Development Group extends industrial chain to terminal consumption market and expands food and catering businesses which mainly include several first-level subsidiaries such as Sunner Food, Risheng Food, Fengsheng Vegetable, Lemeilong Catering Management, etc., and their businesses cover chicken food deep processing, catering chain store, bean products processing and others. CP Group invests 1.7 billion yuan in Yiwu to build central kitchen with a daily production scale of 500,000 special packed meals and meat products deep processing project with annual production capacity of 90,000 tons meat products. (4) Yellow broiler raising suffered heavy losses in the first half of 2017, and the situation turned better somewhat in the second half of 2017; enterprises speed up expansion of iced fresh chicken market. Under the influence of many factors such as H7N9 in the first half of 2017, the distribution channel of live poultry was blocked across the country, and yellow broiler industry suffered heavy losses. According to primary estimates, yellow broiler raising industry suffered a loss of more than 5 billion yuan in the first half of 2017, which made the whole industry faced with development crisis. In the longer-term, yellow broiler enterprises should change profit model, perfect whole-course cold chain control and broaden marketing channel. As a leading enterprise in yellow broiler industry, WENS Group gradually makes transformation to a whole industrial chain business integrating production, slaughtering, deep processing and selling by investing in poultry slaughtering projects. The report will make in-depth research on the development trend of domestic broiler industry and the operation models of major enterprises and conclude the investment trends of domestic enterprises and capital to assist enterprises, capital and insiders to grasp the moving tendency and investment opportunities and determine suitable development mode and resources needing integration.