China has suspended the import of poultry meat from three countries

Brazil (May), Thailand (feed contamination), and Spain (August) were successively subject to China's embargo due to avian influenza or safety issues. The three countries accounted for 28% of China's total poultry meat imports. The Spanish ban was particularly unexpected as it had just signed an export agreement with China in April.

Impact: Domestic frozen food prices have dropped in the short term (for instance, the price of chicken wings has decreased by 0.5 to 1 yuan per kilogram), but the price of raw chicken has risen slightly against the trend due to reduced supply.

Avian influenza has resurged in South America

An outbreak of highly pathogenic H5N1 avian influenza occurred in Buenos Aires Province, Argentina, with over 20,000 domestic fowls culled, shattering the expectation of a "disease-free" situation in South America. The "regionalized lifting of restrictions" negotiations between Brazil and Central Europe have reached a deadlock. If no agreement is reached before September, the domestic shortage of chicken feet and wings may reach 300,000 tons, and prices may rise by 20% to 30%.

The pace of seed source autonomy is accelerating

In China, 60% of the white-feathered chicken breeding sources rely on imports. Enterprises such as Yisheng Co., Ltd. are accelerating cooperation with France and New Zealand to introduce breeds, with the goal of increasing the proportion of domestic breeding sources to 40% by 2026.