China Is Building Its Own Poultry Industry—What That Means for the Rest of the World

For years, China has been one of the world's largest poultry importers. That is beginning to change.

According to the USDA Foreign Agricultural Service, China is rapidly expanding its domestic poultry industry through large, vertically integrated companies that control nearly every step of production—from breeding stock and hatcheries to feed mills, grow-out farms, processing plants, and exports. The result is a poultry industry that is becoming more efficient, more self-sufficient, and increasingly competitive on the global market.

What Does "Vertical Integration" Mean?

Vertical integration simply means that one company owns or controls multiple stages of production rather than relying on separate businesses.

Instead of purchasing chicks from one company, feed from another, and processing through a third, integrated poultry companies often control:

  • Breeding stock

  • Hatcheries

  • Feed mills

  • Broiler farms

  • Processing plants

  • Distribution

  • Export sales

This allows companies to standardize genetics, improve biosecurity, reduce transportation costs, and closely monitor production from the egg to the grocery store.

The model has long been common in the United States. China is now investing heavily in similar systems.

China Is Importing Less Chicken

USDA reports show China's domestic production is now growing faster than consumer demand.

As production increases, imports are falling.

In fact, China has lowered its import forecasts while raising production estimates because large integrated poultry companies continue expanding farms and processing capacity. Many importers are also reducing purchases because more chicken is available from domestic producers.

Perhaps the biggest milestone came in 2024 when China transitioned from being a net importer of chicken meat to becoming a net exporter. USDA forecasts exports will continue increasing while imports continue to decline.

Why Is China Investing So Much?

Several factors are driving the expansion.

Chicken is one of the most efficient sources of animal protein. Broilers grow quickly, convert feed efficiently, and require less land than many other livestock systems. Integrated production also allows companies to better manage disease risks, maintain consistent quality, and respond quickly to market demand.

The OECD and FAO note that poultry production is particularly well suited to vertically integrated supply chains because it requires less land, less upfront investment than some livestock sectors, and can scale rapidly.

Why This Matters

This trend extends beyond China.

As countries work to feed growing populations while improving efficiency, demand for advanced poultry genetics and integrated production systems is likely to continue increasing.

Companies developing new commercial broiler lines—such as the recently introduced Cobb 800—are responding to this demand for birds that produce more meat with fewer resources. Whether those gains can continue while maintaining high standards for bird welfare will remain one of the industry's most important questions.

For poultry enthusiasts, breeders, and producers, China's investment serves as a reminder that the future of poultry production isn't just about raising more chickens. It's about producing more protein through better genetics, nutrition, management, and coordination across the entire production chain.

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FAQ

Why is China expanding its poultry industry?

China is investing in domestic poultry production to improve food security, reduce reliance on imports, and meet growing consumer demand for affordable protein.

What is vertical integration in poultry?

Vertical integration means one company controls multiple stages of production, including breeding, hatcheries, feed mills, grow-out farms, processing, and distribution.

Is China importing less chicken?

Yes. As domestic production has increased, China has reduced poultry imports while expanding its own processing and production capacity.

Why is poultry important for food security?

Poultry is one of the most efficient sources of animal protein because chickens convert feed efficiently, grow quickly, and require less land than many other livestock species.

Does China use the same commercial broiler genetics as the United States?

China has historically used commercial genetics from international breeding companies while also investing heavily in developing its own breeding programs to increase long-term self-sufficiency.

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