Volume output within the Chinese poultry eggs market has increased at a compound annual growth rate (CAGR) of 1.77% between 1998 and 2012, increasing from 20 million tons in 1998, almost 40% of the total output for poultry eggs globally, to reach output volume of 28.61 million tons in 2012.
The production of poultry eggs mainly concentrates in Henan, Shandong, Hebei, Liaoning, Jiangsu, Sichuan, Hubei, Anhui, Heilongjiang and Jilin. The total output volume of poultry eggs in these regions accounts for over 80% of the national output volume.
Before the reform and opening up (1978), there was a very small output volume of poultry eggs in China and poultry eggs were extremely insufficient for a long period. After the reform and opening up, the poultry egg industry boomed in China. In 1984, China surpassed the U.S. in the output volume of poultry eggs, with poultry egg output value ranking No.1 in the world.
The poultry farming industry in China is labour intensive. For every dollar spent on labour, only 16 cents are invested in capital. Labour is required to check feed and water systems, to spread litter across the shed as bedding for the birds, and to monitor and adjust heating and cooling in the sheds.
Currently, poultry farming is rather fragmented across China, and most operators in the industry are family owned. Low-cost labour in rural areas, and small operations across the industry, constrain the application of expensive advanced farming systems. Free-range operations involve significantly more labour and therefore have higher labour costs, which have also been increasing in recent years.
By consumption channel, led by household consumption, poultry egg consumption in China can be classified into industry consumption (cleaner eggs, highly processed eggs), household consumption (edible eggs) and outdoor eggs (eggs consumed in restaurants and institutions).
Though China widely exported its egg products to many countries and regions like Asia, Europe, North America and Oceania, its export destinations mainly concentrate in neighbour countries and regions influenced by geography, quality and processing level. In 2012, the export value of egg products of China to Asia was USD 167 million, increasing by 1.7% YOY and accounting for 94.4% ofthe total export value.
With the growing population and increasing income per capita in China, the consumption volume of poultry eggs is promoted constantly. It is predicted that the annual growth rate of poultry egg output volume will remain 2% or higher in China during 2013-2017.
For more information on the Chinese poultry eggs market, see the latest research: Chinese Poultry Eggs Market
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