China's white-feathered meat duck industry: Deep losses and the path to recovery

 

China's white-feathered meat duck industry experienced its worst downturn in a decade in 2025, with rising production but falling prices resulting in widespread losses across the supply chain.

 

Nationwide, 4.382 billion meat ducks were marketed, up 3.86% year-on-year, yet total industry output value fell 9.61%. Oversupply drove the average tax-exclusive duck meat price down 14% to ¥6,520/tonne (US$910), while duckling prices remained weak at ¥1.0-1.8/bird (US$0.14-0.25).

 

Losses affected every stage of production. Breeding duck operations lost an average of ¥0.65/bird (US$0.09), commercial farms lost ¥0.20/bird (US$0.03), and slaughterhouses averaged losses of ¥0.55/bird (US$0.08).

 

Major integrated producers were hit particularly hard. Yike Food reported a net loss of around ¥280 million (US$39.1 million), while gross profit from its duck products and duckling businesses declined by nearly ¥500 million (US$69.8 million). Huaying Agriculture also swung into losses, forecasting a deficit of ¥45-65 million (US$6.3-9.1 million). In contrast, downstream food processors benefited from cheaper raw materials. Zhou Hei Ya increased net profit by 59.6% to ¥157 million (US$21.9 million), while Huangshanghuang improved gross margins on its marinated meat products.

 

The downturn stemmed from severe overcapacity and weak consumer demand. Previous expansion created excessive breeding and farming capacity, while sluggish economic conditions and low pork prices reduced demand for duck meat. Structural weaknesses—including limited deep processing, poor product differentiation, inefficient production systems adapted from broiler chickens, and rising biosecurity and environmental compliance costs—further eroded profitability.

 

Duck feather prices surged late in the year as expectations of a colder La Niña winter boosted demand from the down jacket industry. Prices for 90% white duck down reached ¥564/kg (US$78.70), the highest level in 12 years, briefly lifting processors' earnings. However, the gains proved temporary. Rising duckling costs and falling feather prices in December quickly pushed processors back into losses, demonstrating that seasonal feather income could not offset deep losses in the core duck meat business.

 

To restore profitability, the industry must accelerate the removal of excess capacity, improve supply chain coordination, and address environmental challenges.

 

Long-term competitiveness will depend on expanding value-added processing, adopting smarter production technologies tailored to waterfowl, and developing export markets and stronger brands to shift the industry from volume-driven growth to higher-value production.

 

- EFL AG-DATA