Research Background

China’s breeding industry had big changes in 2009, of which supply of live pigs turned from a shortage to a surplus, from high profits to losses, prices have dropped sharply compared the same period of last year. Broiler breeding also turned from a high profit in 2008 to a low profit and some losses. Due to inadequate adjustment in prior period, layers breeding continued the loss momentum in 2008, resulting in laying hens stock on hand continued to decline. Beef cattle breeding recovered in the third quarter, cow stock in the main producing areas began to pick up and stop declining. Sheep stock continued to decline.

At the policy level, the state continued to subsidize investment and construction of standard and large-scale farms, issued the “Regulation Plan (Provisional) on Preventing Excessive Price Down of Live Pigs”, and for the first time initiated a response mechanism when the market reached warning point, due to the influence of H1N1 influenza, suspended imports of pork products from H1N1 influenza epidemic areas, and required all imported pork must pass the H1N1 detection. The Commerce Ministry of China conducted an anti-dumping investigation to US chicken, and the US market opened up to China’s chicken products.

Regarding breeding, animal diseases remained serious in 2009, and frequently lead to early slaughter and selling of live pigs and chickens, as well as abnormal elimination of laying hens. But sow stock is still in surplus, while many small hatcheries of broilers and layers suffered heavy losses, an increase of market variables.
Regarding slaughter, the construction of large-scale pig and chicken slaughtering and processing enterprises are continued throughout the country, these enterprises are basically in the north of the Yangtze River. Despite the ban on live poultry trade in South China, local chicken slaughtering facilities are still relatively lacking. China’s corn reduced production in 2009, which will pull corn prices up even through supply is still adequate, thus increasing production cost of breeding industry.
Breeding and slaughtering industries had drastic changes in 2009, BOABC will carry out follow-up analysis in this report, striving to make a clear development direction and provide references for decision-making.

Chap 1 External Environment 1
1.1 Macro Economic and Impacts 1
1.1.1 Employment and Income Growth 1
1.1.2 Food Expenditure 1
1.1.3 Urbanization 1
1.2 Macro Policies and Impacts 2
1.2.1 Document No.1 of 2009 2
1.2.2 State council’s executive meeting: Support the development of livestock industry 2
1.2.3 Ministry of agriculture: foreign investment introduction must be in favor of Chinese farmers 2
1.2.4 Supply policy 3
1.2.5 State-owned Company re-dominate livestock products processing industry 3
1.2.6 Information statistics system 3
1.2.7 Advantageous Regional Layout of china’s beef cattle, sheep, milk cow and pig 3
1.2.8 Construction of quality supervision station of agriculture products 4
1.2.9 Give out consume subsidy to low income group 4
1.3 Epidemics Prevention System and Impacts 4
1.3.1 Construction of Animal Epidemic Prevention System 4
1.3.2 Debut of official vet 4
1.4 Development and impact of slaughter industry 5
1.4.1 Appointed slaughter of flocks and herds 5
1.4.2 Tracing System of Quality of Pork 5
1.4.3 Slaughterhouses classification 5
1.4.4 Plan on hog slaughtering industry (2010-2015) 5
1.4.5 Other Companies Engage in Breeding 5
1.5 Development of Feed Industry and Impacts 6
1.6 International Trade of Animal Products and Impacts 6
Chap 2 China Profile 7
2.1 Supply of Animal Products in 2009 7
Fig 1.1, Output of Pork, Beef, Mutton, Poultry Meat and Poultry Eggs from 2000-2010 7
2.2 Demand for Animal Products in 2009 7
Fig 1.2, Total Consumption of Pork, Beef, Mutton, Poultry Meat and Poultry Eggs from 2000-2010 8
2.3 Livestock Slaughter and Processing in 2009 8
Fig 1.3, Meat Production of Scaled Slaughterhouses from 2001-2009 8
2.4 Price Level of Animal Products in 2009 9
Fig 1.4, Trend of Retail Price of Animal Products from 2000-2010 9
Fig 1.5, Trend of Weighed Price of Animal Products from 2000-2010 10
2.5 Profits of China Animal Farming in 2009 10
2.6 Changes of Animal Farming Scale in 2009 10
2.7 International Trade of Animal Products in 2009 10
Fig 1.6, China Animal Products Import, 2000-2010 11
Fig 1.7, China Animal Products Export, 2000-2010 11
Chap 3 Pork Market 12
3.1 Global Pork Output in 2009 12
3.2 Supporting Policy to Hog Farming 12
3.2.1 Fattening Hogs and Insurance 12
3.2.2 Early-warning System of Hog Farming 12
3.2.3 Establishment and operation of Pork Reserve System 12
3.2.4 Establishment of pig exchange 12
3.3 Pork Supply 13
3.3.1 Breeding Hog Inventory in 2009 13
Fig 3.1, China Sow Inventory from 2000-2010 13
3.3.2 Hog Inventory & Crop and Pork Production in 2009 13
Fig 3.2, China Hog Inventory from 2000-2010 14
Fig 3.3, China Hog Crop from 2000-2010 14
Fig 3.4, China Pork Output from 2000-2010 15
Fig 3.5, Regional Structure of Hog Crop in 2009 15
3.3.3 Hog Farming Scale in 2009 15
Fig 3.6, Scale Structure of Hog Slaughtering from 2001-2009 16
Fig 3.7, Scale Structure of Hog Farms in 2009 16
3.3.4 Hog Epidemics in 2009 16
3.3.5 Ractopamine pork in 2009 17
3.3.6 Outlook of Pork Supply in 2010 17
3.4 Hog Farming Profits 18
3.4.1 Hog Farming Cost in 2009 18
Fig 3.8, Structure of Hog Farming Cost from 2008-2010 18
3.4.2 Live Hog Price in 2009 18
Fig 3.9, Monthly Live Hog Price from 2005-2009 19
3.4.3 Profit of Hog Farming in 2009 19
3.4.4 Forecast of Hog Farming Profit in 2010 19
3.5 Hog Slaughter and Processing 19
3.5.1 Policy on Hog Slaughter and Processing in 2009 19
3.5.2 Structure of Hog Slaughterhouses in 2009 19
Fig 3.10, Quantity Structure of Slaughterhouses by Capacity in 2009 20
3.5.3 Hog Slaughter Capacity in 2009 20
Fig 3.11, Capacity Structure of Hog Slaughterhouses in 2009 21
3.5.4 Hog Slaughtering in 2009 21
Fig 3.12, Structure of Slaughtering Volume of Hog Slaughterhouses in 2009 21
3.5.5 Profit of Hog Slaughtering Industry in 2009 22
3.5.6 Forecast of Hog Slaughtering Industry in 2010 22
3.6 Pork Consumption 22
3.6.1 Pork Consumption Volume in 2009 22
3.6.2 Structure of Urban and Rural Consumption of Pork in 2009 22
3.6.3 Structure of Pork Consumption of Different Channels in 2009 22
3.6.4 Structure of Pork Consumption of Different Product Style in 2009 22
3.6.5 Price Level of Pork in 2009 23
Fig 3.13, Monthly Retail Price of Pork from 2005-2009 23
3.6.6 Influence of H1N1 23
3.7 Pork Trade 23
3.7.1 Policy on Pork Trade in 2009 23
3.7.2 Pork Export in 2009 23
Fig 3.14, China Pork Import & Export from 2000-2009 24
3.7.3 Import of Pork in 2009 24
3.8 Outlook of Pork Market in 2010 24
3.8.1 Hog Farming Policy 24
3.8.2 Hog Inventory and Slaughter 24
3.8.3 Pork Production 24
3.8.4 Pork Consumption 24
3.8.5 Pork Trade 25
3.8.6 Pork Price 25
Chapter 4 Poultry Meat Market 26
4.1 Global Poultry Meat Output in 2009 26
4.2 Supporting Policy to Meat Poultry Farming 26
4.3 General Status of Meat Poultry Farming 26
4.3.1 Inventory and Slaughtering of Meat Poultry in 2009 26
Fig 4.1, China Poultry Crop from 2000-2010 26
4.3.2 Poultry Meat Production in 2009 26
Fig 4.2, China Poultry Meat Production from 2000-2010 27
Fig 4.3, Structure of Poultry Meat Producing Regions in 2009 27
4.3.3 Structure of Meat Poultry Farming in 2009 27
4.4 Chicken Meat Supply 28
4.4.1 Inventory of Breeding Chickens in 2009 28
4.4.2 Inventory and Crop of Broilers and Chicken Meat Production in 2009 28
Fig 4.4, Structure of Chicken Meat Producing Regions in 2009 28
4.4.3 Broiler Farming Scale in 2009 28
Fig 4.5, China Broiler Crop Structure by Farm Size from 2000-2009 29
Fig 4.6, Structure of Broiler Farming Scales in 2009 29
4.4.4 Broiler Farming Technology in 2009 29
4.4.5 Broiler Epidemics in 2009 29
4.5 Broiler Farming Profit 30
4.5.1 Cost of Broiler Farming in 2009 30
Fig 4.7, Structure of Broiler Farming Costs in 2008-2010 30
4.5.2 Live Broiler Price in 2009 30
4.5.3 Profit of Broiler Farming in 2009 30
4.5.4 Outlook of Broiler Farming Profit in 2010 30
4.6 Status of Broiler Slaughter and Processing Industry 31
4.6.1 Policy on Broiler Slaughter and Processing in 2009 31
4.6.2 Structure of Broiler Slaughter and Processing Enterprises in 2009 31
4.6.3 Structure of Processed Chicken Meat Products in 2009 31
4.6.4 Broiler Slaughter Capacity and Slaughter Amount in 2009 31
4.6.5 Outlook of Broiler Slaughter Industry in 2010 31
4.7 Poultry Meat Consumption 32
4.7.1 Poultry Meat Consumption in 2009 32
4.7.2 Urban and Rural Structure of Poultry Meat Consumption in 2009 32
4.7.3 Structure of Poultry Meat Consumption through Different Channels in 2009 32
4.7.4 Poultry Meat Price in 2009 32
Fig 4.8, Retail Price of Dressed Chicken from 2005-2009 32
4.8 Poultry Meat Trade 33
4.8.1 Policy on Poultry Meat Trade in 2009 33
4.8.2 Poultry Meat Export in 2009 33
Fig 4.9, China Chicken Meat and Edible Offal Import & Export from 2000-2009 33
4.8.3 Poultry Meat Import in 2009 33
4.9 Outlook of Meat Poultry Market in 2010 34
4.9.1 Policy on Meat Poultry Farming 34
4.9.2 Inventory and Crop of Meat Poultry 34
4.9.3 Production of Meat Poultry 34
4.9.4 Consumption of Poultry Meat 34
4.9.5 Poultry Meat Trade 34
4.9.6 Price of Poultry Meat 34
Chapter 5 Poultry Egg Market 35
5.1 Global Egg Output in 2009 35
5.2 Supporting Policy to Egg Poultry Farming 35
5.3 General Situation of Egg Poultry Farming 35
5.3.1 Inventory and Structure of Egg Poultry in 2009 35
5.3.2 Production and Structure of Poultry Eggs in 2009 35
Fig 5.1, China Poultry Eggs Output from 2000-2010 36
5.4 Supply of Chicken Eggs 36
5.4.1 Inventory of Breeding Layers in 2009 36
5.4.2 Layer Inventory and Egg Output in 2009 36
Fig 5.2, Regional Structure of Chicken Egg Production of Scaled Layer Farms in 2009 37
5.4.3 Laye