Lard and poultry fats market in China

Earlier Report Observations

The Chinese market for lard and poultry fats contracted sharply in 2019 and 2020, primarily due to the outbreak of African Swine Fever (ASF) which began in 2018. This epidemic caused a significant reduction in the national pig herd, directly leading to a shortage of raw material for pig fat production and a corresponding decline in overall output. The market volatility during this period accelerated a shift in industry structure, with smaller, high-cost producers exiting and market share beginning to consolidate around larger players.

A robust recovery commenced in 2021, driven by decisive government policy and industry consolidation. The Ministry of Agriculture's implementation of the 'Pig Production Capacity Regulation Plan' established a clear target for the core breeding sow inventory, providing a framework for stabilizing and rebuilding the supply base. Major companies like Wens and Muyuan expanded their market share, leveraging economies of scale and stringent cost control to increase production efficiency and overall volume, which set the stage for sustained growth.

Output continued to rise through 2022 and 2023, reaching a new peak as earlier capacity adjustments took full effect and alleviated previous oversupply concerns. The industry's focus increasingly turned to technological modernization, with the promotion of intelligent farming and smart production systems becoming key tools for further enhancing efficiency and managing operational costs, solidifying the foundation for large-scale, intensive production.

Production lard and poultry fats in China

In kind, 2017-2020, K t

From 2017 to 2020, China maintained its position as the world's leading producer of lard and poultry fats.

Top producers of lard and poultry fats, 2017-2020

World map of production of lard and poultry fats, 2017-2020

China's production of lard and poultry fats declined for the third consecutive year. In 2020, output reached 1,892 thousand tonnes, marking a modest year-on-year decrease of 4.2%. Over the 2017-2020 period, production fell by 22.9%, with a compound annual growth rate of -8.3%.

Annual dynamics of production in China in kind, 2017-2020, K t

Exports lard and poultry fats from China

Exports in kind, t

The market experienced significant fluctuations during this period. Exports peaked in 2018 and reached their lowest point in 2020, with a 60-fold difference between these years. In 2020, China's foreign supplies of lard and poultry fats totaled 20 tonnes, representing a sharp decline of 96.4% compared to 2019. The maximum volume was recorded in 2018 at 1,180 tonnes, which also saw the largest increase of 1,509.1%.

Annual dynamics of product's exports from China in kind, 2017-2020, t

From 2017 to 2020, Hong Kong was the nearly exclusive buyer of lard and poultry fats from China, accounting for 96.4% of total exports in volume terms.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from China in kind, 2017-2020

Exports in value, K $ US

Market behavior was characterized by volatility during these years. Export values peaked in 2018 and hit their lowest point in 2020, with a 33-fold gap between these extremes. In 2020, shipments of lard and poultry fats from China abroad amounted to 59 thousand US dollars, down 93.2% from 2019. The maximum value was recorded in 2018 at 1,911 thousand US dollars, which also saw the largest increase of 1,295.9%.

Annual dynamics of product's exports from China in value, 2017-2020, K $ US

From 2017 to 2020, 93.9% of the total export value of lard and poultry fats from China was directed to Hong Kong, making this market overwhelmingly dominant.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from China in value, 2017-2020

Imports lard and poultry fats to China

Imports in kind, t

In 2020, China's volume of lard and poultry fats imports totaled 2,189 tonnes, showing a modest gain of 7.8% compared to 2019. Over the 2017-2020 period, imports increased by 34%, with a compound annual growth rate of 10.3%. The maximum volume was recorded in 2018 at 2,451 tonnes, which saw the largest increase of 50.1%. The largest decline occurred in 2019 at 17.2%.

Annual dynamics of product's imports to China in kind, 2017-2020, t

From 2017 to 2020, two markets—Hong Kong and the Netherlands—dominated imports of lard and poultry fats to China in volume terms, jointly accounting for 100.0% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to China in kind, 2017-2020

Imports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. The highest value was observed in 2018, while the lowest occurred in 2017, with a peak-to-trough ratio of 2.3 times. In 2020, deliveries of lard and poultry fats to China totaled 1,324 thousand US dollars, down 10.7% from 2019. The maximum value was recorded in 2018 at 2,645 thousand US dollars, which saw the largest increase of 127.2%. The largest decline occurred in 2019 at 43.9%.

Annual dynamics of product's imports to China in value, 2017-2020, K $ US

From 2017 to 2020, Hong Kong and the Netherlands remained the dominant destinations for imports of lard and poultry fats to China in value terms, jointly accounting for 100.0% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to China in value, 2017-2020