As we all know, in the market, when the supply of a commodity exceeds the demand, the price of this commodity will fall. However, during this period, the supply of chicken in China was sufficient, which led to the price drop. Chicken is abundant in China for the following reasons:
1. According to official data, in the first seven months of this year, China's chicken imports from abroad increased substantially, 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 China residents was sluggish, and the catering industry could not operate normally, which led to a further backlog of chicken. After the COVID-19 epidemic was brought under control, the service industry in China gradually returned to normal, and the previous backlog of chicken began to slowly digest.
Third, the growth cycle of chickens 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 pork prices to soar in China, which promoted the expansion of broiler breeding scale. However, the growth cycle of chickens is short, so at the beginning of this year, the broilers that had been expanded before could be released, but the COVID-19 epidemic once 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 harms farmers, while expensive food harms people? That's the truth. Therefore, the prices of chicken and other commodities should be kept within a reasonable range to maintain social stability.