China’s chicken production surges, reducing appetite for imports as food safety fears grow amid coronavirus

China is expected to produce a record 14.85 million tonnes of chicken meat in 2020, a substantial increase over last year’s 18 per cent rise to 13.75 million tonnes

Expansion is boosting demand for key feed grains like corn and soybeans, while pushing down prices and meaning smaller purchases of imported frozen chicken

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China slaughtered 9.3 billion chickens last year, including 4.4 billion white-feathered broilers, favoured by fast-food chains for cheap, plump meat. Photo: AFP

Published: 5:31pm, 17 Aug 2020Updated: 9:04am, 19 Aug 2020

China’s chicken producers are pushing ahead with aggressive expansion plans despite a slump in demand due to the coronavirus, reducing reliance on imports amid recent fears about the safety of foreign meat.

The world’s second largest poultry producer is expected to produce a record 14.85 million tonnes of chicken meat in 2020, according to the United States Department of Agriculture, a substantial increase over last year’s 18 per cent rise to 13.75 million tonnes.

The significant expansion is boosting demand for key feed grains like corn and soybeans, according to traders in China, while pushing down poultry prices.

It could also mean smaller purchases of imported frozen chicken just as consumer confidence in imported food takes a hit after chicken wings from Brazil tested positive for the coronavirus last week.

The price is so low. I don’t think it’s just weak demand but it’s also the sufficient supply

Pan Chenjun

“Currently the price is so low. I don’t think it’s just weak demand but it’s also the sufficient supply,” said Pan Chenjun, senior analyst at Rabobank.