March 13, 2016

Thanks to a growing acceptance of eating poultry by a younger generation and a burgeoning quick service restaurant (QSR) sector, poultry production in China is expected to continue to grow faster than pork.  Poultry production in China is the most industrialized protein sector in the country producing 17 million tons annually and accounting for 18% of global production, second only to the U.S.  Quick service restaurants such as KFC and McDonalds are the driving force behind poultry demand in China.  KFC has 4,000 outlets and McDonalds has 1,500 outlets with KFC claiming 39% of the Chinese fast food market.  Vertical integration is gaining popularity but it being held back by prohibitive capital requirements, rising land costs and lack of experience-China still lags behind other industrialized nations in terms of food safety, disease management, farm management and productivity.

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