According to a recent report from the Global Agricultural Information Network (GAIN) of the U.S. Department of Agriculture (USDA), poultry industry sources indicate that the average grandparent flock inventory in China in the first half of 2024 is higher than in the same period of 2023. The USDA publication expects the larger grandparent inventory in 2024 to enable greater white broiler production in 2025.
China’s white broiler production relies in part on imported genetics, although domestically produced genetics have increased their market share. Since 2022, several of the leading poultry genetics exporting countries, including the USA, notified China of detections of highly pathogenic avian influenza (HPAI), which subsequently prompted China to impose import controls on genetics from these suppliers.
In the first half of 2024, although imports of poultry genetics from some origins have resumed, restrictions on imports of the same related to HPAI from several U.S. states remain in place.
Due to sanitary and phytosanitary restrictions on imported genetics, Chinese white chicken producers have increased their self-sufficiency by opting for domestically produced genetics. According to industry and market signals, it appears that 2024 will close with a greater number of grandparents available and that local genetics have increased their market share due to their lower price compared to imported genetics. More importantly, the production efficiency of domestically produced genetics is improving.
According to media reports, a domestic company developed a domestically produced genetic line called “SZ 901” in 2019. In 2023, this company introduced an improved line, “SZ 901 Plus”, which has a better feed conversion ratio.