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.
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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