China, Peoples Republic of Poultry and Product Annual Report 2008

China's broiler production is forecast to increase by 8% to 13.7 MMT in 2009, due to a sharp decline in pork production in 2006 and 2007 caused by outbreaks of PRRS. According to the Chinese poultry industry, China imported 340,000 sets (one set = 120 birds), 410,000 sets, and 405,600 sets of grandparent generation breeding stocks in 2004, 2005, and 2006, respectively, most from the United States.

Production growth slowed during this period due to outbreaks of SARS in 2003, and highly pathogenic avian influenza (HPAI) in 2004 and 2005 China. Broiler production began increasing when mass outbreaks of PRRS occurred in China during the second half of 2006 and the first half of 2007.

China’s broiler meat consumption in 2009 is forecast to increase by eight percent to 13.9 MMT, following an estimated 12-percent increase to 12.8 MMT in 2008. Both increases are the result of broiler substitution for pork, following the 2006 and 2007 decline in pork production due to disease outbreaks. Out-of-home dining also contributes significantly to this change in consumption.

In January 2008, China changed its May Day holiday from three days to one day, and created an additional three long weekend holidays combined with traditional Chinese festivals (no days off were granted for these holidays in the past). One "golden-week holiday" was replaced by four long-weekend holidays. As a result of these additional days off of work, consumers have more chances to gather together with friends and family and eat at restaurants. Members of China’s busy younger generation love western fast food like Kentucky Fried Chicken or McDonalds.

Bans on poultry imports from five states including Connecticut, Rhode Island, Pennsylvania, West Virginia, and Nebraska were lifted a result of strengthened communication and exchanges between USDA, FAS/Beijing, and the USA Poultry and Egg Export Council (USAPEEC) with AQSIQ and the Chinese poultry industry.

China’s total poultry egg production in 2009 is forecast to increase five percent to 28 MMT, one percent below the growth rate in 2008. China is a net fresh egg exporting country. In the first half of 2008, exports to Hong Kong and Macau accounted for 89 percent of China’s total exports, and exports to the United States accounted for eight percent. Kuwait is a newly discovered market and accounted for two percent of China’s total exports. Spring 2008 also marked the first time China exported breeding eggs to Mongolia, which totaled 180,000 pieces.