China exports 1.085 million tons of chicken meat fueled by subsidies
China exported 1.085 million tons of chicken meat last year while importing 297,000 tons, establishing itself as a net exporter as state subsidies fuel surplus production. According to data released on the 15th by China’s General Administration of Customs, total chicken export value reached $2.6 billion last year, marking a twofold increase over a five-year span.
State Subsidies Drive 1.085 Million Tons of Chicken Exports
China’s transition from a net importer to a supplier stems from structural changes in domestic meat production following the 2018 African swine fever outbreak. The Organisation for Economic Co-operation and Development noted that government subsidies accounted for approximately 13 percent of total gross agricultural receipts in China between 2022 and 2024. State support targeted large-scale corporate farms to secure food supplies and rebuild livestock numbers. As pork production recovered, domestic demand for poultry slowed, leaving producers with excess output. Production climbed from 14.6 million tons in 2020 to 16.5 million tons last year, while domestic consumption crept from 15.21 million tons to 15.71 million tons.
Global Market Realignment Undercuts Brazil and Thailand
Chinese poultry processors use lower production costs and government-backed scale to compete with traditional export leaders like Brazil and Thailand. Data compiled by the Center for Advanced Studies on Applied Economics in Brazil placed the average export price of Chinese chicken at $1.55 per kilogram last year, sitting 13 percent below the Brazilian average of $1.79 per kilogram. Brazilian producers exported 5.32 million tons last year, retaining the top volume rank globally, but face pricing pressure. Overseas traders note that Chinese exporters predominantly ship chicken breast meat—a cut less favored by domestic consumers who prefer paws and legs—into price-sensitive markets across Africa and Europe at discounts ranging from 10 to 20 percent compared to Brazilian supplies.
Corporate Expansion and Breeding Innovations Challenge Western Dominance
Shandong-based poultry processor Wintop Food reported that half of its annual profits last year derived from international sales, processing 60 million chickens annually with facility sizes scaling up rapidly under local municipal backing. In Tengzhou, municipal authorities subsidized payroll for 2,000 factory workers. Beyond processed meat, Chinese enterprises have begun exporting breeding stock. Fujian-based Sheng Nong Development developed the Shengze 901 white-feathered broiler breed, receiving state approval in late 2021. The company shipped 20,000 breeding birds to Uzbekistan in June, with provincial authorities projecting regional capacity to multiply significantly. Market consultancy Gira data shows China’s share of the European Union processed poultry market doubling to 10 percent since 2022, while the United Kingdom market share tripled past 14 percent.
EU Targets Chinese Poultry Imports with Stricter Rules
Western regulators and domestic producers are responding to the surge of low-cost Chinese protein imports. The European Union plans to enforce stricter origin labeling rules for poultry starting in 2027, closing loopholes that previously excluded processed items like nuggets and seasoned cuts from mandatory country-of-origin displays. Simultaneously, the European Commission initiated an anti-dumping investigation in July targeting white-feathered ducks used in Peking duck dishes following complaints from domestic producers regarding subsidized competition. While chicken imports have not yet faced formal anti-dumping probes, EU officials continue monitoring trade flows closely.
