China broiler companies face losses in 2015 first half

Three of China’s four big listed broiler companies — Fujian Sunner Development, Yisheng Livestock & Poultry Breeding, and Shandong Minhe Animal Husbandry -- recently released their performance report for the first half in 2015. The reports showed that the entire chain of the Chinese broiler industry is facing a major loss.
Amid the slowdown of the industry, however, the expansion of productivity among some companies caused an even greater loss.
Due to the weakness of demand, chicken meat prices fell to a nine-year low. Sunner Development announced that in the first half of 2015 it had fallen into the deepest loss of the past few years, expected to lose US$54.77 to US$58 million, while the gain in 2014 was US$7.01 million. Shandong Minhe is the biggest caged parent stock company in China. It confronted a deeper loss in the second quarter of 2015 with an estimated loss of the first half being about US$ 20.94 to US$22.55 million.
The biggest grandparent stock company — Yisheng Livestock& Poultry Breeding -- increased its productivity in 2014, with the launch of the Jiangsu Yitai project of 900 thousand parent stock, as well as the renting of COFCO Suqian Boriler Farm. But in the first half of 2015, Yisheng Livestock & Poultry Breeding was expected to lose from US$29.8 to US$31.41 million, with the net profit falling by as much as 200.99 percent when compared with the year earlier.