4th Congress of the European Poultry Club, EPC in China from 6 to 9 July 2009

China and Europe linked hands and minds in poultry with a first congress jointly organized by the European Poultry Club (EPC) and the China Animal Agriculture Association (CAAA). Held in Beijing the EPC/CAAA-congress tackled a range  of issues related to the poultry and egg sector such as sustainable broiler integration and supply chain management in the egg sector. The outlook for Asia’s poultry sector as well as investment strategies during the economic downturn were also broached through presentations and a panel discussion.

 

This first EPC/CAAA congress was focused on Sino-European poultry production and cooperation and was attended by more than 100 experts from China and Europe. Coming from all sectors of the business – processing, breeding, feed, finance, marketing and logistics – the event allowed key poultry players to meet, share and deepen their knowledge about  various regional perspectives, with a view on encouraging innovation and furthering understanding of the global poultry business.

 

Wang Junxun, Vice-director of Animal Husbandry Department, Ministry of Agriculture, reported that the poultry industry is the pillar of China’s animal husbandry with the highest large-scale and intensive level and closest to the international advanced level. It developed fast and the comprehensive production capacity was enhanced significantly, which has been an important source of farmers’ income growth. And poultry product is one of the most popular protein animal products. Currently, China is the second largest poultry meat producing country. In 2007, China’s egg production accounted for 92% of the world’ s egg production increment,  and 44,95 % of the world’s total. The action plan for the next years foresees, to build up a genetic breeding pyramid, to encourage to establishment of production zones and to set up product quality security systems.
 

The impact of the financial crisis on business and investment strategies in the poultry sector was the theme of Nan-Dirk Mulder, Associate Director Commodities Feed and Animal Protein from Rabobank International. His conclusions:

  • Great long-term meat demand potential remains for the global industry, but with a temporary slowdown due to the economic crisis
  • Driven by long-term fundamentals, industry winners will start to restructure and expand next year; confidence and economic recovery will be key
  • Dealing with volatility in feed ingredients and exchange rates conditions will be a key challenge for the industry in the coming years
  • Consolidation in the global meat industry is driven by Brazilian and US companies; Europe is fragmented and does not utilise opportunities in the large EU market
  • The European industry has to consolidate in the next 5 to ten years to keep track with much bigger international companies
  • Main M&A – motives will be bargaining power, access to new growth markets, access to low-cost production, and multispecies
  • The global meat industry landscape will change significantly in the next 10 years – companies have to focus on scale or niche

Mark Han, Chairman of Dachan Food Asia (DFA), gave a short overview on the Dachan Food company and its strategy with innovating brand value and Traceability System Capacity. DFA is the largest chicken meat processor in China with a vertically integrated business model. The traceability system comprises feed-, farm-, meat- and food safety. The brand is “sisters kitchen” and a safety code is on every of DFA products which gives detailed information on the product.

 

The current situation and the sustainable development of the broiler industry was described by Mr Feng She from Beijing Huadu Broiler Corporation. The output of chicken meat ranks 2nd around the world. From 1984 to 2009 the chicken meat output of China has been increasing rapidly. The rising domestic consumption is becoming the main driving power of the development of broiler industry in China. In 2008 the import of chicken meat grew by 4.5 times compared with 2004 and the domestic market was hard hit and the benefit of the industry was effected severely. The export of Chinese chicken meat is only 3.2% of the total chicken meat output. The continued development of the national economy has provided financial and marketing support to China’s broiler industry. The urban population has increased and the consumption of chicken will continue to rise. Convenient, fast way of consumption make chicken being popular by consumers. Safety, health and cheapness are the sustainable development base of China’s broiler industry and also are the developing advantages. By the investment and finance leasing, broiler industry would continue to develop towards collectivization and scaled development.
 

The supply chain management of Chinese egg industry was explained by Gu Qing, Executive Vice-president of DeQingYuan. China is the biggest egg market of the world, the egg production in 2008 reach 45 % of the world output. DeQingYuan is Asian largest layer farm with an environment- friendly egg production. DQY produces 1.5 million shell eggs per day, with 70 % channelled into the retail market in Beijing. The liquid egg production line is expected to produce 10,000 tonnes of processed eggs per year.

Food safety is guaranteed by ISO- and HACCP- Certifications and by zero-detection of E-coli and Salmonella on egg shell and inside.

 

Besides lively exchanges and interactions on the conference floor, participants also had the chance to tour a Chinese poultry meat production facility and an egg factory.

DQY opened the doors for the interested EPC- und CAAA-members to the biggest layer company with egg processing and biogas facilities in China. DQY was supplier of egg for the Olympic Games in 2008.
 

Another group visited “CP China”, broiler company, genetic breeding farm and also the GPS PS and broiler integrations in Beijing.

 

The next EPC-event it is planned be an international Poultry Conference organized in the surrounding of EuroTier 2010 in Hanover with partnership of the Russian poultry association and the CAAA.