poultry forum (screenshot)
In 2023, China's chicken product exports was 554,100 tons, an increase of 22,000 tons from 2022, a month-on-month increase of 4.13%. Japan is China's main poultry export destination, with 172,300 tons exported to Japan in 2023. In the first half of 2024, Japan imported 84,056 tons of Chinese chicken products, a year-on-year increase of 7%. Fujian Shengnong, Shandong Fengxiang and other companies are its main exporters, and China's export companies may go to overseas markets more in the future.
Strong demand for chicken
Japan, known for its culinary traditions and high standards of food quality, has seen major changes in its chicken market dynamics. Despite strong demand for chicken, the market balance is weakening due to increased supply.
Chicken consumption will remain stable in 2025 as the increase in the number of overseas tourists drives demand in the hotel, restaurant and institution (HRI) sector.
Out of the shadow of the epidemic, the number of tourists visiting Japan hit a record high
Perhaps to take advantage of the weak yen, tourists have flocked to Japan. In the first half of 2024, the number of overseas tourists has reached 71% of the total number of tourists in 2023.
According to a report released by the Japan National Tourism Organization, the number of foreign tourists visiting Japan reached 3.1356 million in June, an increase of 51.2% year-on-year, setting a record high for a single month and also setting a record high for the fourth consecutive month. It is 8.9% higher than the same period in 2019 before the COVID-19 epidemic.
Since most tourists dine in restaurants, the consumption of meat, including chicken, has also increased accordingly. In addition, in order to cope with the impact of inflation on the market, some restaurants and convenience stores use chicken instead of beef or pork in some recipes.
Retail chicken sales in the first half of 2024 were the same as in the same period of 2020. Another impact of the price increase is a slight shift in consumer preferences: because leg meat is more expensive than breast meat in Japan, more consumers choose to buy breast meat.
Costs such as raw materials affect local production
In Japan, the production costs of broilers and laying hens remain high due to the sharp depreciation of the yen, which requires the import of feed raw materials, and compound feed prices have remained at historical highs.
However, major changes have occurred on the supply side. Advances in poultry farming technology and practices have improved production efficiency. In addition, Japan has imported more chicken from countries such as Brazil and Thailand, where production costs are lower. The influx of imported chicken has greatly increased the overall supply in the market.
Japan's chicken imports have increased significantly
In the first half of 2024, Japan's chicken imports from all major trading partners (Thailand, Brazil and China) increased.
However, pricing challenges that importers still face include a weak yen, rising breast prices, and supply shocks caused by Turkey's export restrictions (which have been felt in both Thailand and Brazil).
According to customs data, the export volume of white-feathered broiler products has grown steadily from 2020 to 2023, with year-on-year growth rates of 15.90%, 21.40%, and 12.19% in 2021-2023, respectively. In the first quarter of 2024, the year-on-year growth rate of exports was as high as 52.27%. Zhuochuang Information believes that from the perspective of foreign market conditions, avian influenza has broken out in major export markets such as Europe, Japan and South Korea, and a large number of poultry have been culled, increasing demand in foreign markets. In addition, the prices of products in foreign markets are relatively high, and the price gap between domestic and foreign markets has increased, further boosting the industry's export enthusiasm.
- Log in to post comments