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Bird Flu Reduces Chinese Chicken Production

17 March 2014

USDA Foreign Agricultural Service

CHINA - Chinese chicken exports for 2014 are forecast to increase by four per cent, while production and import forecasts for Chinese broiler meat have been reduced. Most exports are cooked/preserved products.

China’s 2014 broiler meat production will reach 12.9 million tons, six per cent down from USDA’s official estimate, according to the latest GAIN report from its Foreign Agricultural Service. This reduction is attributed to China’s ongoing avian influenza H7N9 virus detections.

Since January 2014, sources note that China’s poultry industry has experienced a loss of at least RMB40 billion ($6.5 billion), compared to the losses during the first half of 2013 reported at RMB60 billion ($9.84 billion).

Weak consumer demand is expected to bring China’s 2014 broiler meat imports to 235,000 tons, a 13 per cent decrease from USDA’s official figure of 270,000 tons.

Despite ongoing virus detections in live poultry, China’s 2014 broiler meat exports are estimated at 430,000 tons, an increase of four per cent over USDA’s official estimate.

This unexpected increase is due to larger demand for China’s cooked/prepared poultry products, which are reportedly not affected by avian influenza viruses. Furthermore, weak domestic broiler prices make exports more competitive.

Regarding China’s live bird exports, Hong Kong suspended live bird imports from Mainland China for four months, effective on 18 February 2014.

On 25 December 2013, the Chinese Ministry of Commerce (MOFCOM) announced its re-investigation of China’s anti-dumping/countervailing measures against US broiler meat product exports to China.

Further Reading

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