As we all know, in the market, when the supply of a commodity exceeds the demand, the price of this commodity will fall. However, the supply of chicken in China was sufficient during this period, which led to the price drop. The supply of chicken in China is sufficient for the following reasons:
First, according to the official data, the chicken imported from abroad in China increased sharply in the first seven months this year, with a year-on-year increase of about 1 times. A large number of chicken imports have greatly increased the supply of chicken in China, thus lowering the price of chicken in China.
Second, during the COVID-19 epidemic at the beginning of this year, the consumption of Chinese residents was sluggish, and the catering industry failed to operate normally, which led to a further backlog of chicken. After the COVID-19 epidemic was brought under control, China's service industry gradually returned to normal, and the previous backlog of chicken began to be slowly digested.
Third, the growth cycle of chicken is short. As we all know, it takes about four months for normal broilers to hatch and slaughter. From last year to the beginning of this year, African swine fever caused the pork price in China to soar, which promoted the expansion of broiler breeding scale. However, the growth cycle of chicken is short, so at the beginning of this year, the broilers that had been expanded before could be released, but the COVID-19 epidemic again led to the unsalable sales of many broilers, and the price of chicken was further reduced.
Therefore, the decline in chicken prices is caused by many factors. For ordinary people, the decline in chicken prices is a good thing, but it is a bad thing for farmers. There is a saying called? Cheap food hurts farmers, while expensive food hurts people? That's the truth. Therefore, the price of chicken and other commodities should be kept within a reasonable range, so as to maintain social stability.