Layer breeders supply sufficient in China, concentration ratio continues to increase

Since 2017, the layer breeders industry scale has been continuously upgraded in China; a large number of small and medium-sized layer farms have been withdrawn, and the concentration ratio has been continuously improved.
 
(1) The supply of breeders is sufficient. According to the data of China Animal Husbandry Association, in June 2020, the average stock of grandparent generation layer breeder was 650,000 sets, an increase of 3.35% month-on-month and 1.06% year-on-year. In the first half of 2020, the monthly average stock of parent generation layer breeder was 13.63 million sets, down 280,000 or 2.0% from 13.91 million in the same period last year. In 2020, the average inventory was 13.76 million sets, a decrease of 130,000 sets or 0.9%. In the first half of 2020, the average egg utilization rate of parent generation farms in China was 63%, down 21 percentage points or 25.0% from 84% in the same period last year. Compared with the average utilization rate of 70% in the same period of the previous year, it decreased by 7 percentage points and 10.0% compared with the same period of the previous year.
 
(2) The concentration ratio of China's TOP10 layer farming enterprises exceeds 80%. Domestic breed breeding companies mainly include Beijing Huadu Yukou Poultry Co., Ltd., BAU Group, Hebei Dawu Group and Shanghai Xinyang Poultry Breeding Co., Ltd., with a market share of 40% for domestic breeds. The representative enterprises of imported breeds are Huayu Agriculture Sciences and Technology Co., Ltd., Ningxia Xiaoming Agriculture & Animal Husbandry Co., Ltd., Shenyang Huamei Livestock and Poultry Co., Ltd., Sichuan Shengruida Poultry Co. Ltd. and Beijing Nongxiao Poultry Co., Ltd., with the market share of imported varieties accounting for about 60%. Breeding chicken enterprises attach importance to scientific research investment and technical system construction, and continue to expand production scale. In the future, the competition will be more intense, market concentration ratio will be further improved.