Cape Times

China modernises its egg factories

- Dominique Patton

BEHIND a row of sealed red incubator doors in a new facility in northern China, about 400 000 chicks are hatched every day, part of the rapidly modernisin­g supply chain in China’s $3 billion (R40.33bn) egg industry, the world’s biggest.

As China overhauls production of everything from pork to milk and vegetables, farmers raising hens for eggs are also shifting from backyards to factory farms, where modern standardis­ed processes are expected to raise quality and safety.

That’s an important step in a country where melamineta­inted eggs and eggs with high antibiotic residues have featured in a series of food safety scandals in recent years. It is also spurring demand for higher priced branded eggs over those sold loose in fresh produce markets.

“These days if you’re a small farmer, your eggs won’t get into the supermarke­ts,” said Yuan Song, an analyst with China-America Commodity Data Analytics.

Tough new regulation­s on treating manure and reducing the environmen­tal impact from farms have also pushed many small farmers out.

Most egg producers now have between 20 000 and 50 000 hens, said Yuan, a significan­t change even from two years ago. The remainder with less than 10 000 birds are likely to be shut down soon, as local government­s favour larger producers that can be more easily scrutinise­d.

Those rapid changes are driving investment­s like the 150 million yuan (R303.54m) hatchery in Handan, about 400km south-west of Beijing.

The highly automated plant, owned by a joint venture between China’s Huayu Agricultur­al Science and Technology and EW Group’s genetics business Hy-Line Internatio­nal, is the world’s biggest hatchery of layer chicks or birds raised to produce eggs rather than meat.

By producing 200 000 females a day, or around 60 million layers a year (one day a week is for cleaning), it can meet demand from larger farms that want to buy dayold-chicks in one batch, said Jonathan Cade, president of Hy-Line Internatio­nal based in West Des Moines, Iowa.

“That’s the best way to start off with good biosecurit­y,” he said. When the birds on one farm are the same age, they are less likely to spread disease.

Imported, latest-generation equipment helps speed up the throughput of the hatchery. An automatic grading machine, which can handle 60 000 eggs an hour, sorts eggs into two acceptable sizes before they enter incubators – uniform eggs produce similar sized chicks that will have the same feeding ability.

Once hatched, female chicks go to automated beak-clipping machines that process around 3 500 an hour.

Only 20 staff will be needed in the new plant, compared with around 100 in Huayu’s older hatchery, said Huayu chairperso­n Wang Lianzeng.

Efficiency is important in an industry which is not expected to see much volume growth.

The Chinese already eat more eggs per capita than almost everyone else, about 280 a year or almost 1 billion a day countrywid­e, so consumptio­n is unlikely to rise much.

Breeders like Huayu are trying to grow by taking market share from others. In addition to the new Handan hatchery, it is building another in Chongqing, which will bring annual production to 180 million chicks.

Layer inventory last year was around 1.2 billion, according to the China Animal Agricultur­e Associatio­n.

Huayu is also looking into breeding layers and building hatcheries in South-East Asia and Africa, said Wang.

Key to industrial scale facilities will be managing the risks of disease.

Prices and demand for eggs and poultry fell last year, after hundreds of people died from contractin­g bird flu, even though the flocks went unscathed.

 ?? PHOTOS: REUTERS ?? A man works at a machine that prepares chicken eggs for hatching at the Huayu hatchery in Handan, China.
PHOTOS: REUTERS A man works at a machine that prepares chicken eggs for hatching at the Huayu hatchery in Handan, China.
 ??  ?? A worker inserts a rack with trays of chicken eggs into an incubator in the same factory.
A worker inserts a rack with trays of chicken eggs into an incubator in the same factory.

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