Weight-lifting boost: These 3 types of ducklings are starting to rise in price—will this be a fleeting trend, or has a turning point arrived?


Release date:

2020-05-31

After being delayed for more than two months, the annual Two Sessions finally came to a close. 2020 was an extraordinary year: domestically, the pandemic left over 80,000 people confirmed cases and claimed the lives of more than 4,000 fellow citizens. As a result, the agenda of this year’s Two Sessions was notably more concise and focused compared to previous years. Historically, every major outbreak has sent shockwaves through the poultry industry—just as it did during SARS in 2003 and avian flu in 2013, when countless poultry businesses collapsed and the industry underwent a dramatic reshuffle. This time, too, COVID-19 proved no exception. Looking back at the Two Sessions, poultry-related discussions were scarce—barely worth counting on one hand—while pigs continued to dominate the headlines. Of course, both “feng” and “feng” (referring to trends or momentum) carry similar connotations, yet this year the term increasingly evoked the sense of “closure”—a reminder of the challenges and uncertainties that still loom large in the sector.

The number of breeding sows in stock is a key indicator for the hog industry, influencing the long-term trend of live pig supply and serving as a reliable barometer for predicting future pork prices. As clearly illustrated in the chart above, the hog industry has experienced significant fluctuations in production capacity—

Looking back at the Two Sessions, poultry was mentioned only a handful of times—far fewer compared to pigs, which continued to steal the spotlight. Of course, while both share the character "feng"—meaning "wind" or "promotion"—their meanings and connotations differ significantly. This year, the trend is increasingly highlighting a sense of "sealing" or "closure."

·   The cyclical giant wave, beginning in 2018

Industry Watch: The golden period driven by African swine fever has come to an end—now the poultry industry faces a critical crisis!

 

Pigs ensure food security for the nation; for a long time, China has been the world's largest producer and consumer of pork. In the simple-minded beliefs of the older generation, "pig" and "meat" were essentially considered synonymous.

Although demand for pork has softened in recent years due to rising household incomes and shifting consumer habits, the meat it occupies in people’s shopping baskets has consistently remained above 50%. On average, this translates to roughly half a pig consumed per person annually. But this situation took a major turn in 2018, Also drifting along with the tide are countless small and medium-sized households, livestock and poultry enterprises, and individual farmers across the country.

Strictly speaking, the outbreak of African swine fever has become the second major shock in the past decade, delivering a profound and widespread impact on the hog industry—and now its effects are spilling over to chickens, ducks, cattle, and sheep as well. Prior to this, since 2015, increasingly stringent environmental policies have already overwhelmed most small- and medium-sized pig farming enterprises, pushing them to the brink of survival amid skyrocketing cost pressures.

 

 

From global experience, there are essentially two approaches to controlling African swine fever: biological control and vaccine-based prevention. Since a vaccine remains elusive, biological control emerges as the only viable solution—specifically, measures such as culling, disinfection, harmless disposal of infected animals, and enhancing biosecurity protocols in livestock farming—to effectively manage and prevent the spread of the disease.

Due to national conditions and historical factors, small- to medium-sized farms and individual farmers have always accounted for a significant share of China's domestic pig farming industry, while the country’s overall capacity to prevent and control swine disease outbreaks remains relatively low. Moreover, African swine fever has occurred in China for the first time, characterized by high infection and mortality rates, coupled with limited experience in managing the disease. As a result, within just six months, the outbreak spread across the entire nation, leading to a dramatic decline in production capacity and a sharp drop in the national pig population.

The number of breeding sows in stock is a key indicator for the hog industry, influencing the long-term trend of生猪 supply and serving as a reliable barometer for predicting future pork prices. As clearly illustrated in the chart above, the hog industry has experienced significant fluctuations in production capacity— Described as unprecedented, it's unlikely to be matched by anyone in the future.

· Profits soar tenfold this year! Chickens, ducks, and geese make a dazzling debut.

Chickens, ducks, geese, cattle, and sheep have long eyed pork's dominant position, tirelessly pondering and devising every possible strategy—but despite their efforts, they’ve never quite managed to shake it or significantly boost consumption. Finally, African swine fever has put an end to their ambitions.

Half of the country's livestock industry has already collapsed—African swine fever continues to spread, and the supply of live pigs simply cannot recover anytime soon, not even in the next year or two. As a result, the market share that once belonged to pigs has naturally shifted to chickens, ducks, cattle, and sheep—and even egg prices have skyrocketed.

2019 National Analysis of Meat and Egg Consumption Patterns – China Poultry Network

According to data released earlier this year by the China Animal Husbandry Association, in 2019, China's commercial broiler chickens (white-feathered and yellow-feathered), as well as waterfowl, were marketed in the following quantities: 4.4 billion, 4.9 billion, 4.2 billion , representing year-on-year increases of approximately 500 million, 1 billion, and 1.3 billion birds, respectively—growth rates reaching 12.8%, 25%, and 44.8%. Daily slaughter volumes stood at around 12 million, 13.4 million, and 11.5 million birds, respectively. Poultry has rapidly emerged as a dominant force, now accounting for fully one-third of the nation’s total poultry production.

2019 was a year of happiness—and also a year of wealth creation! The poultry industry, having weathered the environmental crackdown since 2017—regardless of company size, whether raising chickens, ducks, or geese, or where they sit within the industry’s upstream, midstream, or downstream segments—has generally enjoyed a remarkably prosperous year. Meanwhile, amid global uncertainties and the ongoing U.S.-China trade war—and even amid frequent verbal spats that have dominated headlines all year—the soaring demand for poultry products has remained relentless!

 

Chicklings cost 13 yuan, ducklings 10 yuan, while goslings fetched as high as 30 yuan each. In this industry, new millionaires emerge—and get richer—almost every week, truly earning their wealth in hard cash. The industry's frenzy and the sheer exaggeration of numbers may be hard for outsiders to fully grasp or even imagine—but a quick glance at the earnings reports from publicly listed companies is all it takes to get a sense of just how lucrative things have become. Whether it’s Jiangsu Lihua, Fujian Shengnong, Xiantan, or Yisheng, companies with even a slight connection to chickens or ducks are raking in profits hand over fist. Even longtime investors who’ve been stuck in their positions for over a decade are finally celebrating as they finally break free from their losses. Meanwhile, a pig farming company from Henan has also soared to legendary status this year, earning itself the nickname "the Berkshire Hathaway of pigs"—a testament to its remarkable success.

But everything came to an abrupt halt prematurely because of COVID-19.

Since the COVID-19 pandemic, business has slumped and industries have languished—this is plain for everyone to see, so there’s no need to dwell on it further. For too long, the "investment, consumption, and foreign trade" growth model, often referred to as the "three-horse carriage," has faced severe challenges. Against the backdrop of the global pandemic and rising anti-globalization trends, foreign trade has essentially hit a dead end. As a result, boosting domestic consumption and accelerating economic recovery have become critical priorities for China.

Since the Golden Week holiday in May, despite aggressive cash giveaways and the distribution of consumer vouchers totaling over 10 billion yuan across various regions, the overall pace of consumption recovery has remained sluggish. Meanwhile, the massive real estate bubble is already draining wealth that could have sustained the next three decades. As a result, the middle- and lower-income groups—those earning more than 1 billion yuan—now face declining incomes and increasingly pessimistic expectations. Naturally, with households strapped for cash, there’s simply no money left for spending—or even talk of "revenge spending"!

In May, hog prices experienced a dramatic plunge, falling sharply and steadily—marking 17 consecutive weeks of decline. In regions like Northeast China and Henan, the price of live pigs even dipped to around 12 yuan per jin. Given such a significant pork supply gap, it’s no surprise that the poultry and egg markets, which have been aggressively expanding production, are now under immense pressure. Currently, industry confidence remains low, with market participants adopting a cautious, wait-and-see approach. Meanwhile, cold-storage facilities at slaughterhouses continue to hold moderately high inventory levels. Despite the gradual return to work and school, as well as the reopening of shopping malls and cinemas, price increases for both meat cuts and poultry/duck by-products are likely to face substantial resistance in the near term.

On one hand, feed prices continue to rise, driving up costs; on the other hand, market conditions for livestock farming are steadily declining, leaving more and more farmers feeling uneasy and uncertain about the future. After all, when exactly will the livestock market finally hit a turning point?

Since last weekend, on May 23, fast-growing meat ducklings—led by Cherry Valley ducks, Peking ducks, and Maple Leaf ducks—have begun a gradual recovery, steadily climbing higher. For three consecutive days, prices have increased by 20 to 30 cents each day. Currently, the price has risen from the early-month low of 0.5 yuan per bird all the way up to around 2 yuan today.

This also indirectly reflects that the market for meat ducks is starting to recover, boosting farmers' enthusiasm for raising them. But will this mark the beginning of a turning point for the poultry industry, or is it merely a fleeting moment of optimism?

Currently, the most noticeable price increase is seen only in fast-growing white ducklings; other poultry breeds—such as chicken and goose chicks—show no signs of recovery and are even continuing to decline. However, it’s worth noting that the poultry farming market in northern regions appears to be gradually rebounding. In recent days, many northern breeders have started actively sourcing large quantities of chicks or fertile eggs from southern suppliers. This is a positive development.

Whether this is the real turning point or not, one thing is certain: the turning point will arrive in the near future. According to industry feedback and monitoring data from Zhongqin.com, July marked the bottom, while August saw a significant rebound. As a result, it remains highly likely that the fourth quarter will finally turn losses into profits.

 

 

 

 

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