--- title: "HuaChuang Securities: Chick prices have bottomed out and rebounded, and the market outlook is expected to improve" type: "News" locale: "en" url: "https://longbridge.com/en/news/237109724.md" description: "Huachuang Securities released a research report stating that as of April 19, the average purchase price of April broiler chickens was 3.67 yuan per bird, an increase of 3.97% compared to March. It is expected that the market will further strengthen in late April and May, mainly influenced by the preparation for the May Day holiday and the China-U.S. tariff game. The price of chicks has rebounded from the bottom, with the average price of chicks in March being 2.81 yuan per bird, a month-on-month increase of 33%. Chicken prices have slightly decreased, mainly due to suppressed downstream demand" datetime: "2025-04-23T07:29:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/237109724.md) - [en](https://longbridge.com/en/news/237109724.md) - [zh-HK](https://longbridge.com/zh-HK/news/237109724.md) generator: "portal-rs" --- # HuaChuang Securities: Chick prices have bottomed out and rebounded, and the market outlook is expected to improve According to the Zhitong Finance APP, Huachuang Securities released a research report stating that as of April 19, the average purchase price of meat chickens in April was 3.67 yuan per bird, an increase of 3.97% compared to March's 3.53 yuan per bird. Looking ahead to late April and May, prices are expected to strengthen further. On the demand side, preparations for the May Day holiday have already begun, and distributors have a strong willingness to restock; on the cost side, under the China-U.S. tariff game, the price increase of major feed raw materials such as soybean meal provides strong support for meat chicken prices. At the same time, China has also imposed "reciprocal tariffs" on U.S. imported chicken, suspending the import of poultry products from two U.S. companies involved, which is expected to have a marginal uplifting effect on chicken prices; on the breeding side, imports from the U.S. and New Zealand have not yet resumed, and the price of parent stock remains high, with expected good profitability continuing. ## The main points of Huachuang Securities are as follows: **Chickens: Meat chicken supply interruption, chick prices rebound from the bottom** In February, meat chicken prices fell sharply, and in March, prices rebounded: **1) Supply dimension:** The interruption time for meat chickens in March this year exceeded previous years, and the rebound in prices intensified; **2) Demand dimension:** Farmers' enthusiasm for restocking has increased, and hatcheries are speeding up chick production. In March, chick prices generally followed the rise in meat chicken prices, with the average price of industry white feather chicks at 2.81 yuan per bird, up 33% month-on-month and down 24% year-on-year. The transaction price for large manufacturers at the end of the month was about 3.7 yuan per bird. **Chicken: Chicken prices slightly decline while diverging from meat chicken prices, with downstream demand remaining the main suppressing factor** In March, the national average price of white feather meat chickens was 7.13 yuan/kg, down 7% year-on-year and up 18% month-on-month, while the average price of chicken products was 8,992.50 yuan/ton, down 6% year-on-year and down 1% month-on-month. The overseas import volume remains limited, and the price of parent stock chicks remains high. **The impact of overseas avian influenza continues, limiting grandparent stock imports** **In terms of grandparent stock capacity,** as of March 2025, the average number of grandparent chickens in production was 1.31 million sets, up 13.0% year-on-year and up 1.3% month-on-month; the average number of backup grandparent chickens was 760,000 sets, down 1.6% year-on-year and up 1.3% month-on-month. **In terms of parent stock capacity,** as of March 2025, the average number of parent stock in production at the association's sample points was 22.76 million sets, up 3.1% year-on-year and down 1.1% month-on-month; the average number of backup parent breeding chickens was 14.84 million sets, down 8.4% year-on-year and up 2.6% month-on-month. The price of parent stock chicks in March was 41.34 yuan/set, with the latest quote for week 12 of 2025 being 39.84 yuan/set. In summary, profitability at the chick level and slight losses at the meat chicken farming level. In March, the loss in meat chicken farming was 0.41 yuan per bird, with significant reductions in losses compared to the same period last year; hatcheries made a profit of 0.32 yuan per bird, with the profit margin narrowing compared to March last year. **Investment suggestion: Chick prices are expected to remain high in April, with optimism for future market conditions driven by multiple factors** As of April 19, the average purchase price of meat chickens in April was 3.67 yuan per bird, an increase of 3.97% compared to March's 3.53 yuan per bird. Looking ahead to late April and May, prices are expected to strengthen further. On the demand side, preparations for the May Day holiday have already begun, and distributors have a strong willingness to restock; on the cost side, under the China-U.S. tariff game, the price increase of major feed raw materials such as soybean meal provides strong support for meat chicken prices. At the same time, China has also imposed "reciprocal tariffs" on U.S. imported chicken, suspending the import of poultry products from two U.S. companies involved, which is expected to have a marginal uplifting effect on chicken prices; In terms of introduction, the introduction of breeds from the United States and New Zealand has not yet resumed, and the prices of parent stock remain high, with expected good profitability likely to continue. **Long-term focus on the improvement of poultry meat demand under the expectation of consumption recovery** Looking ahead to 2025, from the supply side, the upstream breeding sources for broilers are sufficiently supplied. Key attention should be paid to the sustainability of the impact of overseas avian influenza outbreaks on the introduction of breeds, as well as the impact of domestic diseases such as duck plague on the breeding of commercial broilers and the egg-laying performance of breeding chickens. From the demand side, the sluggish end consumption has always been a key factor suppressing the demand and prices of chicken products, thereby affecting the profitability of the industry chain. In 2025, under the backdrop of expanding domestic demand, chicken consumption is expected to see a boost. With breeding costs still operating at low levels, broiler companies are likely to experience profit improvement and valuation recovery. In addition, as domestic varieties of white-feathered broilers continue to be researched, developed, and upgraded, it is expected that the efficiency gap with overseas varieties in the commercial breeding segment will narrow, and from a long-term perspective, the market share of domestic varieties is expected to continue to increase. **Target aspects** It is recommended to focus on Shengnong Development (002299.SZ), YISHENG (002458.SZ), and Wellhope (603609.SH). **Risk warning** Overseas grandparent chicken introductions recovering beyond expectations, outbreaks of domestic avian influenza and other breeding diseases, decline in chicken prices, major food safety incidents, and systemic risks in the macro economy ### Related Stocks - [002458.CN](https://longbridge.com/en/quote/002458.CN.md) - [603609.CN](https://longbridge.com/en/quote/603609.CN.md) - [002299.CN](https://longbridge.com/en/quote/002299.CN.md) ## Related News & Research - [Why You Might Be Interested In Capital Limited (LON:CAPD) For Its Upcoming Dividend](https://longbridge.com/en/news/296695004.md) - [Is It Worth Considering Mivne Real Estate (K.D) Ltd (TLV:MVNE) For Its Upcoming Dividend?](https://longbridge.com/en/news/296676197.md) - [I.B.I. 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