Friday, April 19, 2013

China Livestock Market Review & Outlook 2012 - 2013 :

Livestock farming profit in China in 2012 shrunk a lot compared with 2011. Hog price dropped and ran at low level continuously, profit of hog farming industry was basically around low level since the beginning of the 2nd Quarter. Profit level of broiler farming industry dropped as well due to the decreasing chicken price, certain enterprises with poor management even suffered serious deficit. For layer breeding industry, market condition was quite gloomy and certain enterprises shut down gradually from production capacity surplus in the first half of 2012, egg price increase was noted till the 3rd Quarter, which dropped again in the 4th Quarter. In spite of the price increase of beef and mutton, increase of breeding profit level was not that obvious. In conclusion, continuous increasing cost and slower consumption demand are the major factors that caused the decreasing livestock-poultry breeding profit level.

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Under the gloomy condition of livestock industry in China in 2012, adjustment in terms of production capacity and farming structure was noted, profit difference was becoming more obvious. Business operation for small scale enterprises was harder and harder, while the business of standardized, industrialized and automated medium-large scale enterprises was expanding, entry standards were set higher. Top farming and slaughtering enterprises never slowed down their expansion. Take Shuanghui Group for an example, it started local cooperation with medium-small scale slaughtering houses in Zhengzhou, Huaiᅡメan, Chongqing and Nanchang to drive up its market share. All sorts of capitals were noted entering breeding and slaughtering industry, trying their best to win the market in the process of industrialization in China.

Regarding imp & exp, import quantity of almost all kinds of meat went up obviously, which made the gloomy domestic livestock product market condition even worse, meanwhile the export meat quantity kept dropping. Trade deficit of meat was widened in China.

In case of mild animal epidemic and normal supplying capacity in the coming 2013, prediction of livestock product market in China is not quite optimistic, the low breeding profit period might be prolonged with vague consumption demand trend. In "China Livestock Market Review & Outlook 2012-2013", deep analysis, such as supply-demand, price change and trade condition regarding hog, meat poultry, egg poultry, beef cattle and mutton sheep, will be made to try to figure out the development direction of livestock product market in China for the related enterprisesᅡメ reference.

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