BEIJING, Oct. 27 /Xinhua-PRNewswire/ -- Himfr.com
( http://www.himfr.com/hot-products/ ), one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, has found that since May 2008, national broiler ( http://www.cheaponsale.com/Products/ ) market prices fell an average of 2 yuan a kilogram. The current national average price of broiler is around 8.4 yuan/kg and is relatively stable. Himfr.com predicts that the end of this year will not see large price fluctuations. Even as the market faces shorter supplies and demand increases, prices will rebound to around 9 yuan/kg.
The reasons for the decline of broiler prices
First, slaughter broiler's
( http://www.cheaponsale.com/buy-Frozen_Broiler_And_Broiler_Parts/ ) growth increased earlier this year, and as a result, broiler prices started rising. In mid-May, as profits rose, breeders began to enlarge their stocks, which caused the price of broiler to fall.
Entering September, breeders hoped that consumption would increase because of the two large festivals in the month. This was only a short-lived boom, however, and after the festivals the prices started falling again. This situation is mainly caused by the increase of broiler supply.
Second, the lower profits of broiler
( http://www.cheaponsale.com/buy-Chicken_Whole_Broiler_Griller/ ). In the first half of 2008, due to the handsome profits in the broiler market, breeders began to increase production, and in May the market reached its saturation point and caused the price to drop suddenly.
Recently, due to weak consumption, and no festival to push consumption, it has been difficult for broiler prices to rise.
Based on the principle of supply and demand, lower prices are inevitable.
Forecasting the future of broiler industry
In the near-term broiler
( http://www.cheaponsale.com/buy-Broiler/ ) prices will continue to fall. The main reason is that with increased production and efficiencies in broiler market, and with a good policy environment, the slaughter rates will continue to increase, resulting in an ever-growing number of broilers. Barring any special circumstances (i.e. widespread disease), the situation will not change.
At the same time, the end of the year will bring more festivals, and resulting increased consumption will be accompanied by increased supply. As a result, prices will not move significantly up or down, because broiler's
( http://www.cheaponsale.com/list-product-Food_Beverage.html ) production cycle is shorter, and with a more flexible supply, the chances of large price swings is not great, unless a major epidemic occurs or feed and raw material prices rise.
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Himfr.com
Room 610, Ximen commercial Building, 256 Xinhua Street
Tong Zhou district, Beijing, 100110 China
Tel: +86-10-5211-8138
Email: cs@himfr.com
