According to Wind data, on March 26, the average price in the main producing areas of broiler chicks was 4.91 yuan/feather, a recent high, and 0.99 yuan/feather compared with the low at the beginning of the year, an increase of 395.96%.
Will rising fry prices trigger a “chicken cycle”? Mr. Wu, a longtime poultry farmer in Wuhan, told reporters that the rising price of chicken seedlings this year was mainly due to tight supply of seedlings and higher feed prices. At present, the production capacity of broilers is large, and the production capacity of broilers will reach a record high in 2020, so there is no shortage of supply.
The chicken seedling market picks up
Broiler seedling prices have rebounded strongly after hitting a trough in early January 2021. After entering March, fry prices high small shock.
Minhe shares recently disclosed that the company sold 30,205,800 baby chickens in February, with sales revenue of 131 million yuan. Minhe shares said that the company’s sales of chickens on behalf of the company increased in February, mainly in response to the local Spring Festival initiative, the company normally started work during the Spring Festival; Sales revenue increased substantially, because February chicken seedling product prices rose, while the number of product sales increased caused by.
Yisheng shares said that with the recovery of the market, the sales price of chicken seedlings increased significantly compared with the same period last year and compared with the same period last month. The company’s sales revenue of chicken seedlings in February increased compared with the same period last year and compared with the same period last month.
With the chicks market warming, listed companies actively expand production. Xiangjia Co., Ltd. announced that it plans to publicly issue convertible corporate bonds and raise no more than 640 million yuan, which will be used for the 13.5 million high-quality chicken standardized breeding base project and the 10,000 pig breeding base project.
Sunnong Development accepted investor research, said that the company will gradually through mergers and acquisitions in the future, the existing capacity of more than 500 million to expand to 1 billion, improve the market share.
Industry chain companies have different influences
“The increase in the price of chicks has little impact on the company.” Saint agriculture development securities department staff said to reporters, Saint agriculture development of the seedling cost is more stable. The company has a complete white feather broiler industry chain, no sales of chicks business. At present, the annual slaughter capacity of Shengnong is planned to be 500 million, and the company will hatch chicks according to the slaughter capacity. However, the fluctuation of feed prices affected the company’s operating costs.
The above-mentioned personage introduces, the company’s future strategy is to improve the white feather broiler market competitiveness, enhance the share. “At the moment our white-feathered broilers account for 10 percent of the national market.”
Minhe shares related people told reporters that changes in the chicken seedling market is the result of the comprehensive effect of multiple, the price of chicken seedlings in the high will continue to be uncertain how long. “The fry price is high, indicating that the enthusiasm of farmers is high.”
Industry insiders pointed out that short-term raw material price fluctuations will not cause significant impact on large catering enterprises. Xi ‘an Diet Chairman Jin Wenping told reporters that the specific impact of chicken price changes on catering companies is still not statistics.
Aftermarket direction is divided
Shares of poultry companies rose as fry prices rose. Superstar is up 50 per cent so far this year, while Minhe shares are up nearly 29 per cent, according to Wind.
Brokerages have differences in future development of poultry industry chain. Zhongtai securities believe that white feathered broiler seedlings, chicken and broiler prices have appeared in different degrees of correction, is expected to short-term demand is weak, chicken prices weak shock. According to the industry chain research, the enthusiasm of abattoir acquisition is not high at present, and the market trading is in a weak position.
Capital Securities believes that from the parental inventory data and demand factors, the expectation of broiler prices in the next three months is more certain. On the demand side, fast food companies have increased the number of outlets to provide an incremental market for chicken.
Boya Hexun analysts said slaughtering companies lower costs, but still in the loss range, some enterprises to reduce inventory promotion. At present, the chicken is not much, farmers pressure column to sell.
Mr. Wu said that the current season is filling column, white feather broiler breeding cycle is shorter, more than 40 days will be released. The price of chicken seedlings is too high, which has a greater impact on the cost of breeding farmers. Broiler prices in the future mainly depends on the recovery of pig production capacity, “pork prices are too high, more people will eat chicken, pork and chicken have mutual substitution relationship.”