Page 184 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
resources, the most complete varieties, and capacity by 20%. Most of these projects have been
the highest level of intelligence globally. Efforts led by established producers with a production
will be made to develop ultra-low temperature capacity of 100 million broilers or more per facility
preservation and restoration technologies per year. In 2022, consumer demand for chicken
and explore gene resources for high-quality, meat is forecast to grow as chicken becomes more
resource-efficient and disease-resistant varieties. competitively priced than pork. The food service
A livestock and poultry biotechnology innovation sector and “healthy eating” trends will also increase
platform will also be established, focusing on key demand. In addition, the purchase of pre-cooked
technologies including cell engineering and whole or fully-cooked chicken for home consumption,
genome selection technique. The CAAS has also which grew during the Covid-19 pandemic, has
pledged to collaborate with enterprises, set up remained post pandemic. In China, processed
innovation bases and promote the application of chicken meat accounts for nearly 15% of total
breeding technologies, aiming to create a series chicken consumption. This category expanded
of livestock and poultry breeds with international during the Covid-19 pandemic as food service and
competitiveness (Xinhua, Scientific Innovations). retail sectors adjusted to consumer demand for
In the first half 2021, China's output of pork, beef, quick and convenient home delivery. Currently,
mutton, and poultry was 42.91 million tons, up three categories dominate China’s processed
23.0% over the same period in 2020. Specifically, chicken products: Pre-cooked, seasoned with
the output of pork increased by 35.9%. By the sauces or spices, preserved or aged products (such
end of the second quarter, 439.11 million pigs as sausages), and heated such as fried, roasted, or
were registered in stock, a year-on-year growth pre-cut salad products. The pre-cooked seasoned
of 29.2%; specifically, 45.64 million were breeding chicken category occupies more than 70% of total
sows, up by 25.7% (Pig333). processed chicken, while the other two occupy the
remaining 30% (Berkhout).
Poultry/Eggs
Of course, there is a totally different part to this
In 2022, chicken meat production in China story in China. Chicken paws, that clawed part of
is forecast to exceed 2021 as prices rebound, the bird’s anatomy which is so ignored or maligned
demand boosts national consumption, and new as a food item in the US, is a gastronomic smash in
facilities expand production capacity. Total imports China. It’s an oddity similar to chicken preferences
of chicken meat to China are forecast to increase in the US where wings are so popular that they
by 3% while exports are expected to grow by 4% by are valued more highly than the rest of the bird.
2023. In 2021, the price of pork declined and many The Chinese desire for chicken paws has proven to
Chinese consumers switched from chicken to pork. be a bonanza for US chicken producers who have
Low chicken prices coupled with high feed costs and been shipping huge volumes of paws to China
weak consumer demand squeezed profit margins since that market reopened to US poultry exports
for small and medium sized producers. It is expected in November of 2019. While they are available only
that in 2022, large producers that withstood 2021 in some niche markets in the US, they are eaten
profit losses are forecast to absorb much of the everywhere in China where they are euphemistically
market share lost by the smaller producers in known as “phoenix talons” and can be found in
2021. In the last few years, multiple companies formal banquet halls, popular restaurants such
have publicized plans to develop breeding farms. It as Cantonese dim-sum establishments, and street
is anticipated that prior investments, new facilities market stands. They are in such demand that they
and new players in chicken production will increase are often more expensive than actual chicken meat.
capacity and expand broiler chick production. For US chicken producers, the Chinese demand for
Industry sources indicated that in the first half of paws has brought a true financial windfall. Without
2021, China imported over 500,000 grandparent it, US companies would have no alternative but to
stock to increase commercial stocks, and vertically sell paws to renderers for just pennies on a pound.
integrated facilities, scheduled to come online Instead, in China, they command an average price
in 2022, are estimated to increase production of nearly US$1.10 per pound and that difference
goes straight to the bottom line. More than 201,000
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resources, the most complete varieties, and capacity by 20%. Most of these projects have been
the highest level of intelligence globally. Efforts led by established producers with a production
will be made to develop ultra-low temperature capacity of 100 million broilers or more per facility
preservation and restoration technologies per year. In 2022, consumer demand for chicken
and explore gene resources for high-quality, meat is forecast to grow as chicken becomes more
resource-efficient and disease-resistant varieties. competitively priced than pork. The food service
A livestock and poultry biotechnology innovation sector and “healthy eating” trends will also increase
platform will also be established, focusing on key demand. In addition, the purchase of pre-cooked
technologies including cell engineering and whole or fully-cooked chicken for home consumption,
genome selection technique. The CAAS has also which grew during the Covid-19 pandemic, has
pledged to collaborate with enterprises, set up remained post pandemic. In China, processed
innovation bases and promote the application of chicken meat accounts for nearly 15% of total
breeding technologies, aiming to create a series chicken consumption. This category expanded
of livestock and poultry breeds with international during the Covid-19 pandemic as food service and
competitiveness (Xinhua, Scientific Innovations). retail sectors adjusted to consumer demand for
In the first half 2021, China's output of pork, beef, quick and convenient home delivery. Currently,
mutton, and poultry was 42.91 million tons, up three categories dominate China’s processed
23.0% over the same period in 2020. Specifically, chicken products: Pre-cooked, seasoned with
the output of pork increased by 35.9%. By the sauces or spices, preserved or aged products (such
end of the second quarter, 439.11 million pigs as sausages), and heated such as fried, roasted, or
were registered in stock, a year-on-year growth pre-cut salad products. The pre-cooked seasoned
of 29.2%; specifically, 45.64 million were breeding chicken category occupies more than 70% of total
sows, up by 25.7% (Pig333). processed chicken, while the other two occupy the
remaining 30% (Berkhout).
Poultry/Eggs
Of course, there is a totally different part to this
In 2022, chicken meat production in China story in China. Chicken paws, that clawed part of
is forecast to exceed 2021 as prices rebound, the bird’s anatomy which is so ignored or maligned
demand boosts national consumption, and new as a food item in the US, is a gastronomic smash in
facilities expand production capacity. Total imports China. It’s an oddity similar to chicken preferences
of chicken meat to China are forecast to increase in the US where wings are so popular that they
by 3% while exports are expected to grow by 4% by are valued more highly than the rest of the bird.
2023. In 2021, the price of pork declined and many The Chinese desire for chicken paws has proven to
Chinese consumers switched from chicken to pork. be a bonanza for US chicken producers who have
Low chicken prices coupled with high feed costs and been shipping huge volumes of paws to China
weak consumer demand squeezed profit margins since that market reopened to US poultry exports
for small and medium sized producers. It is expected in November of 2019. While they are available only
that in 2022, large producers that withstood 2021 in some niche markets in the US, they are eaten
profit losses are forecast to absorb much of the everywhere in China where they are euphemistically
market share lost by the smaller producers in known as “phoenix talons” and can be found in
2021. In the last few years, multiple companies formal banquet halls, popular restaurants such
have publicized plans to develop breeding farms. It as Cantonese dim-sum establishments, and street
is anticipated that prior investments, new facilities market stands. They are in such demand that they
and new players in chicken production will increase are often more expensive than actual chicken meat.
capacity and expand broiler chick production. For US chicken producers, the Chinese demand for
Industry sources indicated that in the first half of paws has brought a true financial windfall. Without
2021, China imported over 500,000 grandparent it, US companies would have no alternative but to
stock to increase commercial stocks, and vertically sell paws to renderers for just pennies on a pound.
integrated facilities, scheduled to come online Instead, in China, they command an average price
in 2022, are estimated to increase production of nearly US$1.10 per pound and that difference
goes straight to the bottom line. More than 201,000
184
