Four of China’s top broiler companies have released their performance reports for the last three quarters. Shandong Xiantan Co. Ltd. managed to gain while the other three large broiler companies — Yisheng Livestock & Poultry Breeding, Shandong Minhe, and Sunner Development — were mired in losses.
According to the performance review, total revenues of Xiantan in the first nine months of 2015 totaled USD 207.03 million. The net profits of Xiantan stood at US$2.25 million, down 67.41 percent year on year.
China’s economic downturn and the lingering influence of food safety incidents have been taking their toll on the consumption of chicken across the country. In the first half of 2015, with increasing supplies of broilers and decreasing demand in the domestic market, the prices of chicken products saw continuous decline since January, according to reports.
Thanks to the decreasing supplies of broilers and higher prices of pork on the market between July and August, the comprehensive price of chicken products showed modest recovery of growth above USD 1,493.40 per ton; the prices of broilers fluctuated around the level of US$1.26 per kilo. However, the comprehensive price gradually dropped to US$1,414.80 per ton as the supplies of broilers and the inventory of the slaughter houses both rose and the prices of broilers as a result dived below US$0.94 per kilo, the rock-bottom price since2006.
Founded in 2001 and listed in Shenzhen Stock Exchange in February 16, 2015, Shandong Xiantan Co., Ltd. has become an industry-leading integrated corporation with business covering feed processing, parent broiler breeding, chick hatching, commercial broiler farming and chicken slaughtering and processing.