Young broiler price was above RMB4.7/bird in April, causing a low profit of RMB1/bird in broiler production. Young broiler price rose to RMB4.92/bird in early May, likely to reduce broiler farms¡¯ profit to RMB0.5/bird. Taking into account of broiler deaths caused by diseases, broiler farms are struggling for a break-even point.
70% of China¡¯s broiler production is contributed by small farms. If they cut broiler inventory, their corn consumption will drop noticeably. Corn consumption by egg layers and hogs is stable presently.
Corn price is on the rise currently, but farmers still tend to hold for higher prices. If feed price keeps going up, broiler farms may refuse to add young broilers to henhouses. This may in turn subdue corn consumption.
|
