Report on Analysis of Costs and Benefits

of China’s Multi-Scale Broiler

Production by Region (2004-2008)

Beijing Shennong Information Technology Co. Ltd.

February 2009
Report on Analysis of Costs and Benefits of China’s Multi-Scale Broiler Production by Region (2004-2008)

Research Background

The set of reports entail the results from a cooperative research programme with Chinese
Academy of Sciences.

Updated versions of the report: “Analysis of Costs and Benefits of China’s Key Animal and
Poultry Products” were released in 2004 and 2006. We released another updated version for
the third time in February 2009.

There are four reports in this comprehensive report as follows:

“Report on Analysis of Costs and Benefits of China’s Multi-Scale Broiler Production by
Region”
“Report on Analysis of Costs and Benefits of China’s Multi-Scale Dairy Cattle, Beef Cattle
and Mutton Sheep Production by Region”
“Report on Analysis of Costs and Benefits of China’s Multi-Scale Live Hog Production by
Region”
“Report on Analysis of Costs and Benefits of China’s Multi-Scale Egg Chicken Production
by Region”

Research Objectives

This report involves key livestock and production animals including: egg chickens, broilers,
live hogs, beef cattle and dairy cattle etc.

The data in this report is based on more than 60000 typical household surveys, which were
carried out in more than 1550 counties all over China from 2000 to 2007 by the related state
departments and our team.

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Report on Analysis of Costs and Benefits of China’s Multi-Scale Broiler Production by Region (2004-2008)

In order to make it easy for comparative analysis, we have applied a relative index to the
data.

A systematical analysis of animal and poultry production costs and benefits on different
scales and in different regions of China will help provide insight on the following issues:
What are the characteristics of cost composition in the production of different kinds of
livestock?
How large are the gaps of production Costs and benefits among the animal and poultry
keepers at different scales and in different regions?
What are the prices of different animal and poultry products in different regions and how do
they vary? Etc.

Special Explanation:

1. Based on the data of monthly prices of different raw feed materials, livestock and poultry in
different regions, we used the stocking efficiency model to analyze changes in the benefits of
raising: egg chickens and broiler in key regions of China from 1998 to 2008.

2. The production Costs and benefits of different scale broiler production in the same region
were compared (2000-2007).

By answering the questions above, an in-depth understanding can be gained about the costs
and benefits of animal and poultry products in different regions and the competition capacity
of China’s animal and poultry products in international marketing.
The report on “Analysis of Costs and Benefits of China’s Key Animal and Poultry Products”
was finished in February 2009.

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Report on Analysis of Costs and Benefits of China’s Multi-Scale Broiler Production by Region (2004-2008)

Table of Contents
Research Background................................................................................................................................... I
Research Objectives .................................................................................................................................... I
Special Explanation ...................................................................................................................................II

Part One Distribution of China’s Broiler Production .........................................................................1

1.1 Distribution of China’s Broiler Production by Province .....................................................................1
1.2 Distributed Characteristics of Chicken Production in China’s Top 100 Counties............................1

Part Two China’s Small-Scale Broiler Production by Region................................................................2

2.1 Characteristics of China’s Small-Scale Broiler Production by Region ..............................................2
2.1.1 Analysis of China’s Small-Scale Broiler Production .....................................................................2
2.1.2 Analysis of Breeding Days in China’s Small-Scale Broiler Production ........................................2
2.1.3 Variation in the Output of Key Products in China’s Broiler Production ........................................2
2.1.4 Fine Fodder Depletion and Feed Conversion Ratio for China’s Small-Scale Broiler Production .3
2.1.5 Analysis of Labor Requirements in China’s Small-Scale Broiler Production................................4
2.2 Production Costs and Benefits of China’s Small-Scale Broiler Production by Region.....................5
2.2.1 Variation in Production Value in China’s Small-Scale Broiler Production ....................................5
2.2.2 Variation in Total Production Costs in China’s Small-Scale Broiler Production ...........................6
2.2.2.1 Variation in Direct Production Costs in China’s Small-Scale Broiler Production ..................7
2.2.2.1.1 Variation in Chicks in China’s Small-Scale Broiler Production......................................7.
2.2.2.1.2 Variation in Fine Fodder Costs in China’s Small-Scale Broiler Production.....................8
2.2.2.2 Variation in Labor Costs in China’s Small-Scale Broiler Production… .................................9
2.2.3 Variation in Net Profits in China’s Small-Scale Broiler Production ............................................10

Part Three China’s Middle-Scale Broiler Production by Region… .................................................... 11

3.1 Characteristics of China’s Middle-Scale Broiler Production............................................................ 11
3.1.1 Analysis of the Extent in China’s Middle-Scale Broiler Production…............................ ………11
3.1.2 Analysis of Breeding Days in China’s Middle -Scale Broiler Production ................................... 11
3.1.3 Variation in Output of Key Products in China’s Middle -Scale Broiler Production .................... 11
3.1.4 Fine Fodder Depletion in China’s Middle -Scale Broiler Production ..........................................12
3.1.5 Analysis of Labor Requirements for China’s Middle –Scale Broiler Production… ....................14
3.2 Production Costs and Benefits of China’s Middle -Scale Broiler Production by Region ...............14
3.2.1 Variation in Production Value in China’s Middle –Scale Broiler Production…… .................….14

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3.2.2 Variation in Total Production Costs in China’s Middle -Scale Live Broiler Production..............15
3.2.2.1 Variation in Direct Production Costs in China’s Middle -Scale Broiler Production .............16
3.2.2.1.1 Variation in Chick Prices in China’s Middle -Scale Broiler Production ........................17
3.2.2.1.2 Variation in Fine Fodder Costs in China’s Middle -Scale Broiler Production ...............18
3.2.2.2 Variation in Labor Costs in China’s Middle-Scale Broiler Production .............................19
3.2.3 Variation in Net Profits in China’s Middle -Scale Broiler Production .........................................20

Part Four China’s Large-Scale Broiler Production by Region ............................................................21

4.1 Characteristics of China’s Large-Scale Broiler Production..........................................................21
4.1.1 Analysis of the Extent of China’s Large-Scale Broiler Production..............................................21
4.1.2 Analysis of Breeding Days in China’s Large-Scale Broiler Production.......................................21
4.1.3 Variation in Output of Key Products in China’s Large-Scale Broiler Production........................22
4.1.4 Fine Fodder Depletion in China’s Large-Scale Broiler Production .............................................22
4.1.5 Analysis of Labor Requirements in China’s Large-Scale Broiler Production..............................24
4.2 Production Costs and Benefits of China’s Large-Scale Broiler Production by Region ..................24
4.2.1 Variation in Production Value in China’s Large-Scale Broiler Production ..................................24
4.2.2 Variation in Total Production Costs in China’s Large-Scale Broiler Production .........................25
4.2.2.1 Variation in Direct Production Costs in China’s Large-Scale Broiler Production ................26
4.2.2.1.1 Variation in Chicks in China’s Large-Scale Broiler Production.....................................27
4.2.2.1.2 Variation in Fine Fodder Costs in China’s Large-Scale Broiler Production...................27
4.2.2.2 Variation in Labor Costs in China’s Large-Scale Broiler Production ...................................28
4.2.3 Variation in Net Profits in China’s Large-Scale Broiler Production ............................................29

Part Five Comparisons of Broiler Production Costs and Benefits with Different Scales in Key
Regions………………………………………………………… ................................. ……………………30
5.1 Comparisons of Average Costs and Benefits for China’s Broiler Production by Scale ..................30
5.1.1 Comparison of Average production Value for China’s Broiler Production by Scale ...................30
5.1.2 Comparison of Average total production Costs for China’s Broiler Production by Scale ...........30
5.1.2.1 Comparison of Average Chick Prices for China’s Broiler Production by Scale ...................30
5.1.2.2 Comparison of Average Fine Fodder Costs for China’s Broiler Production by Scale ..........30
5.1.2.3 Comparison of Average Epidemic Prevention Costs for China’s Broiler Production by Scale31
5.1.2.4 Comparison of Average Labor Costs for China’s Broiler Production by Scale ....................31
5.1.3 Comparison of Average Net Profits for China’s Broiler Production by Scale .............................31
5.2 Comparisons of Costs and Benefits in Broiler Production by Scale in Henan Province ................31
5.2.1 Comparison of Production value in Broiler Production by Scale in Henan Province..................31

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Report on Analysis of Costs and Benefits of China’s Multi-Scale Broiler Production by Region (2004-2008)

5.2.2 Comparison of Production Costs in Broiler Production by Scale in Henan Province .................32
5.2.2.1 Comparison of Chick Costs in Broiler Production by Scale in Henan Province ................32
5.2.2.2 Comparison of Fine Fodder Costs in Broiler Production by Scale in Henan Province.......32
5.2.2.3 Comparison of Epidemic Prevention Costs in Broiler Production by Scale in Henan
Province…………… ..........................................................................................................32
5.2.2.4 Comparison of Labor Costs in Broiler Production by Scale in Henan Province ................33
5.2.3 Comparison of Net Profits in Broiler Production by Scale in Henan Province ...........................33
5.3 Comparisons of Costs and Benefits in Broiler Production by Scale in Guangdong Province........33
5.3.1 Comparison of Production value in Broiler Production by Scale in Guangdong Province .........33
5.3.2 Comparison of Production Costs in Broiler Production by Scale in Guangdong Province .........33
5.3.2.1 Comparison of Chick prices in Broiler Production by Scale in Guangdong Province........33
5.3.2.2 Comparison of Fine Fodder Costs in Broiler Production by Scale in Guangdong Province34
5.3.2.3 Comparison of Epidemic Prevention Costs in Broiler Production by Scale in Guangdong
Province ..............................................................................................................................34
5.3.2.4 Comparison of Labor Costs in Broiler Production by Scale in Guangdong Province ........34
5.3.3 Comparison of Net Profits in Broiler Production by Scale in Guangdong Province .......................34

Part Six Variation in Benefits in China’s Broiler Production by Month (1996~2008)… ...................35
6.1 Changes in Broiler Prices by Month ...................................................................................................35
6.2 Changes in Chick Prices by Month .....................................................................................................36
6.3 Changes in Broiler Feed Prices by Month ..........................................................................................37
6.4 Changes in Broiler Production Benefits by Month ............................................................................38

Attached Table ............................................................................................................................................39

Table 1-1, Poultry Meat Production by Province......................................................................................39
Table 1-2, Poultry Meat Production in China’s Top 100 Counties............................................................40
Add Table 1-2, Broiler Stock in China’s Top 100 Counties......................................................................41
Add Table 1-2, Broiler Stock in China’s Top 100 Counties......................................................................42
Table 1-3, Distribution of Broiler Production in China’s Top 100 Counties by Province (2004).............42
Table 2-1, Breeding Days in China’s Small-Scaled Broiler Production by Region(2004-2007) ..............43
Table 2-2,Output of Key Products in China’s Small-Scaled Broiler Production by Region(2004-2007).43
Table 2-3, Fine Fodder Depletion in China’s Small-Scaled Broiler Production by Region(2004-2007)..43
Table 2-4, Labor Requirements for China’s Small-Scaled Broiler Production by Region(2004-2007)....44
Table 2-5, Production Value in China’s Small-Scaled Broiler Production by Region (2004-2007) .......44
Table 2-6, Total Production Cost in China’s Small-Scaled Broiler Production by Region (2004-2007) 44

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Report on Analysis of Costs and Benefits of China’s Multi-Scale Broiler Production by Region (2004-2008)

Table 2-7, Direct Production Cost in China’s Small-Scaled Broiler Production by Region(2004-2007) .44
Table 2-8-1-1, Chick Prices in China’s Small-Scaled Broiler Production by Region(2004-2007)...........45
Table 2-8-1-2, Fine Fodder Costs in China’s Small-Scaled Broiler Production by Region(2004-2007) ..45
Table 2-8-2, Labor Costs in China’s Small-Scaled Broiler Production by Region(2004-2007) ...............45
Table 2-9, Net Profit in China’s Small-Scaled Broiler Production by Region(2004-2007) ......................45
Table 3-1, Breeding Days in China’s Middle-Scaled Broiler Production by Region(2004-2007)............46
Table 3-2,Output of Key Products in China’s Middle-Scaled Broiler Production by Region(2004-2007)46
Table 3-3, Fine Fodder Depletion in China’s Middle-Scaled Broiler Production by Region(2004-2007)47
Table 3-4, Labor Requirements for China’s Middle-Scaled Broiler Production by Region(2004-2007) .48
Table 3-5, Production Value in China’s Middle-Scaled Broiler Production by Region (2004-2007) .....48
Table 3-6, Total Production Cost in China’s Middle-Scaled Broiler Production by Region (2004-2007) 49
Table 3-7, Direct Production Cost in China’s Middle-Scaled Broiler Production by Region(2004-2007)50
Table 3-8-1-1, Chick Prices in China’s Middle-Scaled Broiler Production by Region(2004-2007).........50
Table 3-8-1-2, Fine Fodder Costs in China’s Middle-Scaled Broiler Production by Region(2004-2007) 51
Table 3-8-2, Labor Costs in China’s Middle-Scaled Broiler Production by Region(2004-2007).............52
Table 3-9, Net Profit in China’s Middle-Scaled Broiler Production by Region(2004-2007)....................52
Table 4-1, Breeding Days in China’s Large-Scaled Broiler Production by Region(2004-2007) ..............53
Table 4-2,Output of Key Products in China’s Large-Scaled Broiler Production by Region(2004-2007).53
Table 4-3, Fine Fodder Depletion in China’s Large-Scaled Broiler Production by Region(2004-2007)..54
Table 4-4, Labor Requirements in China’s Large-Scaled Broiler Production by Region(2004-2007) .....54
Table 4-5, Production Value in China’s Large-Scaled Broiler Production by Region(2004-2007) ........55
Table 4-6, Total Production Cost in China’s Large-Scaled Broiler Production by Region(2004-2007) .55
Table 4-7, Direct Production Cost in China’s Large-Scaled Broiler Production by Region(2004-2007) .56
Table 4-8-1-1, Chick Prices in China’s Large-Scaled Broiler Production by Region(2004-2007) ...........56
Table 4-8-1-2, Fine Fodder Costs in China’s Large-Scaled Broiler Production by Region(2004-2007) ..57
Table 4-8-2, Labor Costs in China’s Large-Scaled Broiler Production by Region(2004-2007) ...............57
Table 4-9, Net Profit in China’s Large-Scaled Broiler Production by Region(2004-2007) ......................58
Table 5-1-1, Comparison of Average Production Value for China’s Broiler Production by Scale............58
Table 5-1-2, Comparison of Average Total Production Costs for China’s Broiler Production by Scale...58
Table 5-1-2-1, Comparison of Average Chick Prices for China’s Broiler Production by Scale................58
Table 5-1-2-2, Comparison of Average Fine Fodder Costs for China’s Broiler Production by Scale.......59
Table 5-1-2-3, Comparison of Average Epidemic Prevention Costs for China’s Broiler Production by
Scale..........................................................................................................................................................59
Table 5-1-2-4, Comparison of Average Labor Costs for China’s Broiler Production by Scale ................59
Table 5-1-3, Comparison of Average Net Profits for China’s Broiler Production by Scale......................59

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Report on Analysis of Costs and Benefits of China’s Multi-Scale Broiler Production by Region (2004-2008)

Table 5-2-1, Comparison of Total Production value in Broiler Production by Scale in Henan Province .59
Table 5-2-2, Comparison of Total Production Costs in Broiler Production by Scale in Henan Province.60
Table 5-2-2-1, Comparison of Chick Prices in Broiler Production by Scale in Henan Province..............60
Table 5-2-2-2, Comparison of Fine Fodder Costs in Broiler Production by Scale in Henan Province.....60
Table 5-2-2-3, Comparison of Epidemic Prevention Costs in Broiler Production by Scale in Henan
Province ....................................................................................................................................................60
Table 5-2-2-4, Comparison of Labor Costs in Broiler Production by Scale in Henan Province...............60
Table 5-3-1, Comparison of Production value in Broiler Production by Scale in Guangdong Province..61
Table 5-3-2, Comparison of Total Production Costs in Broiler Production by Scale in Guangdong
Province ....................................................................................................................................................61
Table 5-3-2-1, Comparison of Chick Prices in Broiler Production by Scale in Guangdong Province .....61
Table 5-3-2-2, Comparison of Chick Prices in Broiler Production by Scale in Guangdong Province .....61
Table 5-3-2-3, Comparison of Epidemic Prevention Costs in Broiler Production by Scale in Guangdong
Province ....................................................................................................................................................62
Table 5-3-2-4, Comparison of Labor Costs in Broiler Production by Scale in Guangdong Province ......62
Table 5-3-3, Comparison of Net Profits in Broiler Production by Scale in Guangdong Province............62

Figure Contents
Figure1.1, Distribution Figures in China’s Broiler Stock by County..........................................................1
Figure2.1, Average Breeding days for China’s Small-Scaled Broiler Production ......................................2
Figure2.2, Average Output of Key Products for China’s Small-Scaled Broiler Production by Region ......3
Figure2.3, Average Consumption of Fine Fodder for China’s Small-Scaled Broiler Production by Region3
Figure2.4, Average Feed Conversion Ratio for China’s Small-Scaled Broiler Production by Region .......4
Figure2.5, Average Labor Requirements for China’s Small-Scaled Broiler Production by Region ...........5
Figure2.6, Comparison of Total Production values in China’s Small-Scaled Broiler Production by
Region.........................................................................................................................................................6
Figure2.7, Comparison of Average Total Production Costs for China’s Small-Scaled Broiler Production
by Region....................................................................................................................................................6
Figure2.8, Comparison of Direct Production Costs in China’s Small-Scaled Broiler Production by
Region.........................................................................................................................................................7
Figure2.9, Comparison of Chick Prices in China’s Small-Scaled Broiler Production by Region ..............8
Figure2.10, Comparison of Fine Fodder Costs in China’s Small-Scaled Broiler Production by Region ...9
Figure2.11, Comparison of Labor Costs in China’s Small-Scaled Broiler Production by Region .............9
Figure2.12, Comparison of Net Profits in China’s Small-Scaled Broiler Production by Region .............10
Figure3.1, Average Breeding Days for China’s Middle-Scaled Broiler Production by Region................ 11

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Figure3.2, Average Output of Key Products for China’s Middle-Scaled Broiler Production by Region..12
Figure3.3, Average Consumption of Fine Fodder for China’s Middle-Scaled Broiler Production by
Region.......................................................................................................................................................13
Figure3.4, Feed Conversion Ratio in China’s Middle-Scaled Broiler Production by Region ..................13
Figure3.5, Average Labor Requirements for China’s Middle-Scaled Broiler Production by Region.......14
Figure3.6, Comparison of Total Production Values in China’s Middle-Scaled Broiler Production by
Region.......................................................................................................................................................15
Figure3.7, Comparison of Average Total Production Costs for China’s Middle-Scaled Broiler Production
by Region..................................................................................................................................................16
Figure3.8, Comparison of Direct Production Costs in China’s Middle-Scaled Broiler Production by
Region.......................................................................................................................................................17
Figure3.9, Comparison of Chick Prices in China’s Middle-Scaled Broiler Production by Region ..........18
Figure3.10, Comparison of Fine Fodder Costs in China’s Middle-Scaled Broiler Production by Region19
Figure3.11, Comparison of Labor Costs in China’s Middle-Scaled Broiler Production by Region .........19
Figure3.12, Comparison of Net Profits in China’s Middle-Scaled Broiler Production by Region ...........20
Figure4.1, Average Breeding Days for China’s Large-Scaled Broiler Production by Region ..................21
Figure4.2, Average Output of Key Products for China’s Large-Scaled Broiler Production by Region ....22
Figure4.3, Average Consumption of Fine Fodder for China’s Large-Scaled Broiler Production by Region23
Figure4.4, Feed Conversion Ratio for China’s Large-Scaled Broiler Production by Region ...................23
Figure4.5, Average Labor Requirements for China’s Large-Scaled Broiler Production by Region .........24
Figure4.6, Comparison of Total Production Value in China’s Large-Scaled Broiler Production by Region25
Figure4.7, Comparison of Average Total Production Costs for China’s Large-Scaled Broiler Production
by Region..................................................................................................................................................26
Figure4.8, Comparison of Direct Production Costs in China’s Large-Scaled Broiler Production by
Region.......................................................................................................................................................26
Figure4.9, Comparison of Chick Prices in China’s Large-Scaled Broiler Production by Region ............27
Figure4.10, Comparison of Fine Fodder Costs in China’s Large-Scaled Broiler Production by Region .28
Figure4.11, Comparison of Labor Costs in China’s Large-Scaled Broiler Production by Region............28
Figure4.12, Comparison of Net Profits in China’s Large-Scaled Broiler Production by Region .............29
Figure6.1, Changes in Broiler Prices by Month(1997-2008)....................................................................35
Figure6.2,Changes in Chick Prices by Month(1997-2008) ....................................................................36
Figure6.3, Changes in Broiler Feed Prices by Month(1997-2008) .........................................................37
Figure6.4, Changes in Broiler Production Benefits by Month(1997-2008) ............................................38

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