Poultry International - June 2017 - 30
30 ❙ PoultryInternational
CHINA'S POULTRY INDUSTRY
Group, the largest Chinese agricultural enterprise, who predicted the
broiler industry will face flat, if not
shrinking, demand, over production
of broiler meat and too little efficiency in production.
to the country's industry no longer being as competitive on labor
costs as they once were. Lyons said
he spoke with the leader of Wens
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adjustment in the Chinese
Chinese businesses are ready to
break down the fragmented industry
and start consolidating the industry.
Along with existing players looking
to integrate, Lyons said companies
without a background in agriculture
are buying their way into the industry. One such company is Haier, the
world's largest appliance company
after its $5.6 billion purchase of GE
Appliance in 2016.
Haier, he said, wants 15 percent
of China's egg market. Right now,
no single company accounts for
more than .3 percent of the annual
production of 300 billion eggs.
The company will use its financial
strength to achieve that goal.
Outside companies have an opportunity to use their capital to
purchase necessary equipment,
feed and additives, but knowledge of
the industry is essential for success.
Lyons said western agribusiness
companies now have a chance to
share their expertise with Chinese
companies entering the industry.
Alltech, Lyons said, is already
working with Haier. Companies are
also changing to serve customers'
changing demands and adapt to new
Like in the West, consumers are
asking more questions about what
they eat. As western chains announce
pledges to reduce or remove antibiotics
from production, Chinese consumers
are demanding the same. To them,
Lyons said, serving China a different
product represents a double standard.
www.WATTAgNet.com ❙ June 2017