GuShiio.com ① The white feather broiler industry has entered an era of small profits, and industrial chain enterprises need to abandon the worship of scale and work hard on differentiation and innovation; ② The industry believes that the industry must empower science and technology, seek benefits from refined management, and scientifically raise chickens., Digital and intelligent management, and deep cultivation based on one’s own advantages can only survive and develop.
Cailian News, March 1 (Reporter Xiao Lianghua)The growth rate of demand for white feather broilers has slowed down sharply, but the supply side has continued to release it. The industry has entered an era of small profits. Raising chickens well has become the norm without making money or even losing money. How should industrial chain enterprises seek to break through?
At the (2025) Five Mountains Broiler Industry Forum and Shandong Broiler High-Quality Development Conference held in Yantai this week, the heads of industrial chain enterprises reached a consensus: they can no longer blindly pursue scale in a “big pie” manner, but based on moderate scale. To slim down “strengthen chickens” and improve quality and efficiency, the industry must empower it from science and technology, seek benefits from refined management, scientifically raise chickens, digitally and intelligently manage it, and deepen it according to its own advantages to survive and develop.
Lin Jie, president of Yisheng Co., Ltd.(002458.SZ), said that the white feather broiler industry needs to promote smart breeding, introduce technologies such as artificial intelligence and big data into the chicken industry, optimize formulas, and improve feed utilization, thereby reducing costs. In addition, as a leading poultry breeding company, the company will continue to purify provenance to ensure breeding safety.
The broiler industry enters the “era of small profits”
After the Spring Festival in 2025, the price of white feather broilers and hairy chickens in the Shandong market once dropped to 10 yuan and 4 kilograms, which was more than 25% lower than the lowest price of 3.4 yuan/catty in 2024. The industry was full of sorrow. At the end of February, the price of hairy chicken rebounded to 3 yuan/catty, which is still below the cost line for most farmers.
In this context, at the 3rd Five Mountains Forum on Broiler Industry, how to break through the inner and outer chapters became the focus of attention of entrepreneurs participating in the meeting.
Wang Qing, vice president of Xiantan Co., Ltd.(002746.SZ), said that in 2024, the market will be affected by macro factors such as weak domestic economic recovery and weak consumer demand. The development speed of supply and demand in the white feather broiler industry market will be unbalanced, and the problem of overcapacity remains prominent.
Industry data shows that the national slaughter volume of white feather broilers in 2024 will be 8.646 billion, a year-on-year increase of 2.57%, which will be significantly slower than the 10.03% increase in the previous year. The prices of major raw materials increased by 15% to 20% year-on-year. It was difficult for downstream consumers to achieve cost transmission. Product prices only increased by 2.3% year-on-year, which was lower than the cost increase. “For example, in the slaughtering process, the capacity utilization rate is less than 75%, and the pressure on amortization of fixed costs is increasing.” Wang Qing said.
Zhao Defeng, general manager of Shouguang Chicken Baby Broiler Breeding Professional Cooperative, also holds the same view. “Many people (in the industry) say that the number of domestic white feather broilers will reach 12 billion in the next few years.(I think) this data is too optimistic.” Zhao Defeng said,”As the population decreases in the future, a decline in consumption is inevitable, and the industry is already on the way to ‘de-capacity’.”
He further expressed his belief that through this Five Mountains Forum, it can bring more thinking, cognition, choices and changes to everyone. In the future, broiler breeding must survive between the epidemic and the market, and will have to accept low-profit operations. “The era of making money even if you don’t care well is gone. Many times it may be inevitable to lose money even if you care well. I hope that amidst the pain of industry corruption, the majority of participants can find a secret for survival and victory that suits them.”
Technology empowerment and refined management break the situation
Under the new normal, from scale expansion to quality and efficiency, industrial structure optimization and industrial chain integration and upgrading have become inevitable choices for the industry.
Sun Zhengbao, chairman of Minhe Co., Ltd.(002234.SZ), said that improving quality and efficiency is inseparable from technology. For example, the company’s newly put into operation in 2024 will be equipped with an intelligent software system. After collecting egg data from different varieties and week-old, an intelligent incubation program will be generated, and efficiency will be greatly improved. “Technology brings infinite imagination. Our factory that produces 300,000 seedlings a day only needs 50 employees and does not need to work overtime.”
Wang Qing shared the company’s gains in cost control and refined management. “By optimizing feed procurement, equipment maintenance and personnel management, the company’s chicken seedling cost has been stably controlled at 2.1-2.2 yuan/bird, which is at the leading level in the industry.”
According to reports, in terms of hardware construction, Xiantan Co., Ltd. has invested in a new 4000-cubic meter modern bulk material storage system with automated conveying equipment to achieve intelligent management of the entire process of feed storage and transportation, and significantly reduce packaging and labor costs. Newly built modern feed tower facilities have been built, and the capacity has been accurately designed based on data such as the number of chickens, growth stages and feed intake. The installation rate has reached 95%, reducing operating costs. Adopt advanced thermal insulation spraying technology to ensure feed quality and improve breeding efficiency.
In addition, in terms of technology research and development, Xiantan Co., Ltd. conducted in-depth analysis of feed processing process parameters and nutritional characteristics of raw materials, established a precise nutrition model, and optimized feed formula by evaluating the impact of key parameters such as crushing particle size and conditioning temperature on nutrient digestibility. The feed-to-meat ratio has improved by an average of 3%-5%, significantly reducing breeding costs.
In terms of improving the conversion rate of feed, the Ministry of Agriculture and Rural Affairs is promoting the substitution of feed raw materials, of which synthetic biology is the key point. Through the application of synthetic biological products, the energy consumption of pigs, poultry and aquatic animals on the digestion of feed protein raw materials can be reduced, and direct absorption and utilization can be improved., reduce carbon emissions.
In this regard, Dr. Kang Zhen, chief scientist of animal nutrition and green agriculture in Shenzhen Ruidin Biotechnology Co., Ltd., told a reporter from Financial News Agency that the company’s synthetic biological products developed mainly based on synthetic biological expression peptides, natural plants and other ingredients are used in feed, animal husbandry and terminal breeding. A large amount of application data has been obtained, which can effectively improve feed utilization, reduce breeding costs, improve animal resistance to diseases, and promote the reduced application of antibiotics.
Slow down, lose weight and strengthen muscles
Homogenization leads to excess, and low-level expansion leads to involution. If white feather chicken companies want to survive and develop, they need to abandon the worship of scale and work hard on differentiation and innovation.
Lu Weiguo, vice president of Shanxi Jinxiu Elephant Agriculture and Animal Husbandry Group, said that scale expansion in the past few years has been the main tone. The current stock of breeders and broilers is very large. Now the company has adjusted its strategy, controlled scale development, and refined and cultivated the entire industrial chain. “Benchmark outstanding colleagues, and even learn from the excellent experience of pig breeding companies, intensively cultivate practices, and improve management levels.”
Cai Fengfeng, director of the poultry business department of Lili (Shanghai) Animal Health Co., Ltd., said that innovation is the best way to solve the problem of internal complications. In 2024, the company will have 7 new products launched on the market in terms of poultry, pigs and pets, and there will be more in the future. New products are put on the market. In addition, the company has also launched a series of tools to meet the needs of intelligent digital management of poultry companies.
Xu Lei, president of Ripu Biotech (300119.SZ), also believes that entrepreneurs in the broiler industry need to run with their eyes open. At present, the country is very tired and may become even more crowded in the future. He suggested that colleagues can go abroad to have a look: “If feed companies go abroad, the overseas profit per ton of feed is 8-10 times that of the domestic market.”
He believes that companies cannot blindly consider corporate management from an incremental perspective as before, but need to consider more improving core competitiveness in segmented areas. “After the enterprise develops to an appropriate scale, what needs to be done most is to reduce costs, increase efficiency, and manage lean. Entrepreneurs need to conduct digital analysis of every link of the production chain, find every key point for improvement, and firmly move towards digital intelligence.”
Yisheng shares have considerable experience in smart breeding and refined management. Lin Jie, president of the company, said that for example, in terms of refined management, the company adjusts parameters through real-time monitoring of the environment so that chickens can grow under the most suitable conditions. Through precise automated feed management, labor is reduced; through big data technology, breeding strategies are continuously optimized. “The application of artificial intelligence technology has played a major role in improving the company’s quality and efficiency. Last year, the company launched a data system, which can diagnose diseases and even predict in advance.”
Ning Zhaofeng, general manager of agriculture and animal husbandry in Baoquanling, Beidahuang, has brought a path to differentiated development. “We make full use of the superior natural environment of the company’s location to develop anti-resistant breeding. The cost of each chicken is only 9 cents, and the antibiotic content is far lower than the national standard and the values required by customers such as McDonald’s. Try a new path.” Ning Zhaofeng said.
