BOABC Viewpoint: China’s investment in layer farming totaled about 4 billion yuan in the first seven months of 2019, a newly increased capacity of 30 million birds

Since the beginning of 2015, the investment projects in layer industry have been increasing, and the investment heat remains until now. At present, eight enterprises including Sun Daily Farm, Jin Jin Agricultural And Pastoral Co.,Ltd., Gerun Husbandry, Liujiang Ecological Animal Husbandry Co.,Ltd. etc. were listed on the the New Third Board, e-commerce platforms such as Yixian Yipin, The First Farm, Long Long Eggs, etc. are making a figure, DQY Ecological and Hong Xuan Agriculture start to optimize and integrate the supply chain.
 
The benefits of raising layers maintain high in 2019, the investment heat in layer rearing continues. Recently, BOBAC counted the newly built large-scale layer farming projects in the first seven months of 2019. The statistics show that the investment in layer farming was about 4 billion yuan in this period, a newly increased capacity of 30 million birds, which accounts for 2% of the national inventory of layers. The investment in layers in 2019 is slightly lower than that in 2017 and 2018, but much higher than that in 2015 and 2016.
 
From the perspective of investors, the investment in layer raising is dominated by DQY Ecological, CP Group, Jin Long Group and other farming enterprises, and supplemented by feed and other enterprises. In 2019, the 10 million layer cooperative project is the largest investment project invested by Hubei Dingyi Nonghe Ecological Technology Co. Ltd., a wholly-owned subsidiary of Wuhan Agricultural & Mercantile Exchange. Liaoning Yiliqi Company invested a 5 million layer project in Heishan county, Liaoning, by virtue of its advantages in feed industry. DQY Ecological, CP Group, Jin Long Group and other large-scale farming enterprises expanded capacity by 3-5 million birds.
 
Compared with pig industry and white broiler industry, layer industry has a lower concentration ratio and a low industrialization level. At present, layer industry is in the critical period of transformation and upgrading. As the growth space for layer consumption in China is limited, layer enterprises can improve the concentration ratio and industrialization level only through internal competition and innovative development mode.