China running short of baby chicks due to global bird flu outbreak: Report

China, which is the world's second-largest poultry producer, is running short of baby chicks due to an unprecedented global bird flu outbreak. A report by the news agency Bloomberg on Wednesday (March 1) said that since the start of 2023, prices have risen in China, threatening to drive up food inflation but also exposing a weak link in the country's efforts to shore up food security.

Baby chicks from the Shandong Yisheng Livestock and Poultry Breeding Co, the top chicken breeder in China, were quoted around $0.86 (6 yuan) per chick this week- which is three times the price at the start of this year.

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“An underlying factor is inadequate imports of breeding stocks,” Lin Goufa, the head of research at the Bric Agriculture Group said, adding that supplies are tight.

As per industry estimates based on customs data, China's imports of grandparent breeding chicken stocks last year more than halved- far from what is usually required to meet the production demand.

Apart from the global bird flu outbreak, the disruption of flights due to the Covid restrictions last year also restricted imports, Bloomberg reported on Wednesday.

Local media reported in December 2021 that China had independently developed white-feather broiler breeds, breaking a 17-year reliance on imported genetic resources for chicken. However, the country still relies on imports as limited domestic breeds are yet to take a significant share of the market.

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Recently, a filing from breeder Yisheng said that China can only import from one US state- Alabama and New Zealand.

Last week, Shandong Minhe Animal Husbandry Co, a top breeder in China said in a filing that imports of grandparent breeding stocks had been low since May last year. The breeder said the shortage of commercial baby chicks was expanding gradually from the end of the second quarter or the early third quarter, adding that prices would be strong.

(With inputs from agencies)

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