The poultry sector in China has undergone a huge growth in the last decades, achieved thanks to the increase of bird numbers and the productivity and linked to the intensification and technification of the process of production of the sector. The poultry sector has been reshaped and is no longer dependent on smallholders, and most large-scale chicken enterprises have adopted contract farming.

On the social side, the growth of this sector has been supported thanks to the rising population and increased urbanization, the growth of the people’s income and consumption, and the improved connection and transportation.

The poultry sector in China consists of several subsectors –chickens, ducks, geese, turkeys, etc. Regarding poultry meat production, chicken accounts for 70% of its production, while ducks and geese account for about 15%. At the same time, chicken accounts for 85% of total egg production.

There is very marked spatial concentration of poultry production in China, in close relationship with the human population density. The eastern region concentrated about 40% of the total poultry population and poultry farms, being the poultry density 30 times higher than in the western region. Most of the provinces with high poultry population are the ones with economic hubs in the coastal areas, such as Beijing, Tianjin, Shanghai, Shandong, and Guangdong.

Meat production overview

In 2018, with the onset of African Swine Fever (ASF) across China (2018) and the derived animal protein deficit, the poultry industry was benefited, especially the white-feathered broilers. In 2019, the total consumption of chicken in China reached 19.582 million tons. In 2020, with the COVID-19 outbreak, the demand decreased by the first half of the year, because of the closure of wet markets, restaurants, and industrial and scholar canteens. In 2022, chicken meat production is forecasted to exceed 2021 as prices rebound, and there is a higher demand and higher production capacity, due to huge imports of grand-parent stock in 2021.

The poultry production in China is the second largest in the world after the US, and it is the second largest animal husbandry in the country after the pig industry. The chicken meat production sector can be divided into white-feathered broiler chicken, accounting for 50% of the total chicken meat production, yellow feathered broiler chicken, accounting for 32%, hybrid chicken (10%) and ex-layers (8%).

The development of white-feathered broiler industry has been especially striking, and it is mainly concentrated in the North, led by Shandong Province, with broilers raised up to 42 days and 2.4-2.8 kg, mostly produced in cages. This broiler comes from foreign genetic lineages and is mostly sold by institutional entities, fast-food restaurants and supermarkets, marketed frozen or chilled and pre-cut.

Yellow-feathered chicken come from indigenous species and are diverse in species, price and breeding cycles and can be divided intro fast growing chickens (raised up to 80 days), medium growing chickens (raised up to 100 days) and slow growing chickens (raised over 100 days). They are more expensive than white-feathered broilers because of their longer growing period. This broiler is mostly sold in wet markets as live or whole birds, being 70% of its production consumed by households, and its production is concentrated in the South, led by Guandong Province.

Hybrid chicken, also known as “817 chicken”, is a unique Chinese variety developed from a cross between male white feather parent and a female commercial layer chicken, raised up to 35-45 days and 1.2-1.4 kg. This variety grows fast and thanks to its reduced costs, lower than white-feathered birds, its presence has expanded in the recent years. It is original from Shandong Province, used for a very famous regional dish called Dezhou Braised Chicken. This product has achieved national popularity and it is mainly sold as cooked and ready-to-eat whole chicken. The smaller size than white broiler makes it ideal for the typical three-person Chinese family, and they are popularly ordered through e-commerce. Their demand has increased after the COVID-19 pandemic.

The top companies of the sector include New Hope Liuhe, Wens Group, Doyoo Group and Dachan Foods. Regarding imports and exports of chicken meat, Brazil has been China’s leading supplier for the past years, accounting for around 60% of the total country imports, followed by Thailand, Argentina, Russia and the US. On the other side, Japan and Hong Kong are the China’s primary export markets, being about 80% of the total chicken meat exports.

Egg production overview

China has been the largest egg production country worldwide for the last 30 years, representing more than 40% of global egg production. A total of 33 Mt of eggs were produced in 2019, a 12-fold increase from 1978.

Egg industry in China is very diverse in several terms, including genetic variety, egg products and production systems. China has multiple indigenous breeds adapted to different environments, which generally have poorer performance than commercial hybrids, being the latest the ones used for most of the egg production. Together with chicken laying hens, eggs from duck, quail and goose are also popular in the Chinese markets.

Eggs are the second source of animal protein for Chinese consumers after pork due to their affordable price. Average egg consumption per capita is around 18 kg per year, higher than in other developed countries. In addition, over 95% eggs are sold as table eggs for direct consumption, a higher percentage compared to the worldwide average of 70%, while only 5% are sold as egg products.

Main types of fresh eggs include brown eggs (58%), pink or light brown eggs (40%), white eggs (1%) and blue eggs (1%). Pink or light-brown eggs are produced mainly by hibryds between brown and white laying hens. They have gained popularity among consumers because of their similarity to indigenous breed eggs and their higher yolk ratio.

Consumer preferences for fresh table eggs has limited the international trade, being egg imports negligible, while egg exports are just 0.25% of the total production. Egg products are exported to Hong Kong, the US, Canada and Japan, and there is a great potential for further development on this area. Among the top companies of the sector, they can be mentioned Beijing DQY Agriculture Technology and Shendan Healthy Foods.

Future trends for the meat and egg industry in China

Demand and intensification of the poultry meat and egg industry will continue to rise, while the number of farms will continue its decrease. Compared to pork and beef, chicken meat is considered healthier and more interesting for the new generations because of its higher protein, low fat and low calories, and it is easier to cook. In addition, the sector has a great potential for expansion regarding the egg derived products and the processed chicken.

Future constraints include the higher concern of consumers and stringent regulations on quality and food safety and the constant feed supply and feed prices. Other limiting factors may be the environmental conditions and pollution, and biosecurity and diseases, including avian influenza.

Sources:

• Binsheng K & Yijun H. (2007). Poultry sector in China: structural changes during the past decade and future trends. Research Center for Rural Economy (RCRE), Ministry of Agriculture, China. FAO Report.
• USDA, Foreign Agricultural Service (2020). China: Poultry and Products Annual. Report.
• Yang, N. (2021). Egg production in China: current status and outlook. Frontiers of Agricultural Science and Engineering 2021, Vol. 8, pags 25-34. DOI: 10.15302/J-FASE-2020363.
• Yang, Z.; Rose, S.P.; Yang, H.M. and Pirgozliev, V.R. (2018). Egg production in China. June 2018. World’s Poultry Science Journal 74(3):1-10. DOI:10.1017/S0043933918000429.