Ordinary Mahuang broiler chickens lost money in June 2016, while bearded chickens were considerably profitable

Cost-benefit analysis of Guangdong yellow-feathered broiler farming in June 2016

I. Ordinary Mahuang broiler farming is in a loss-making state

According to data from the monitoring system, after the third week of May, wholesale prices of broiler chickens in Guangdong Province fluctuated downward. In the second week of June, the average wholesale price of broiler chickens in Guangdong was 18.55 yuan/kg, down 1.9% from the third week of May. Among the main varieties, Sanhuang chickens fell 1.7%. Affected by the decline in wholesale prices, the farming benefits of ordinary broiler farms selling through wholesale channels gradually shrank. Mr. Deng of a broiler farming enterprise in Shanwei said that this year's broiler market is not optimistic. The base mainly raises Mahuang chickens, generally kept for 80-100 days before slaughter. At present, the cost price of broiler farming is about 11.8 yuan per kg, while the average selling price in May was only 11.2 yuan/kg, a loss of 0.6 yuan per kg of chicken. According to the monitoring site, due to the large volume of broiler farming in the province and overall market supply exceeding demand, except for the relatively high chicken prices around the Spring Festival this year, the operation was in a loss-making state the rest of the time.

II. Qingyuan chickens: prices fell but were still profitable

As consumers' requirements for broiler quality continue to rise, more and more producers have shifted to raising high-quality broilers in recent years. According to Manager Xu of a Qingyuan chicken farming base, the high-quality chicken market rose for two consecutive years in 2014 and 2015, with relatively high prices, and the Qingyuan chickens raised also enjoyed two consecutive years of good market conditions. However, as the market acceptance of high-quality Qingyuan chickens continued to increase, stable prices and generous profits also attracted more and more enterprises to enter the Qingyuan chicken farming industry, leading to increasingly fierce competition within the industry and lower prices. From January to May 2016, the average selling price of Qingyuan chickens at the base was 19.8 yuan/kg, down 2.4 yuan/kg from the same period last year, and after deducting costs, each Qingyuan chicken could still yield a profit of 3 yuan.

III. Bearded chickens: stable prices, considerable profits

Affected by market fluctuations, some farming enterprises focused on raising local specialty breeds, not only paying attention to brand development but also actively expanding sales channels. A bearded chicken farming enterprise in Huizhou said that its base raises high-quality Huiyang bearded chickens, with a farming cycle of more than 160 days. This year, the base's broiler prices were not affected by the downturn in the ordinary broiler market and remained stable. At present, bearded chickens sold through wholesale channels are priced at 55 yuan/bird, while those sold through specialty store channels can reach 88 yuan/bird.

Comparison of differences among ordinary Mahuang chickens, Qingyuan chickens and bearded chickens (yuan/jin)

(This information is provided by the Guangdong Provincial Agricultural Information Monitoring System)

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