Yellow-Feathered Chicken Prices Recover, Wens Group Turns Profitable in Early August

Yellow-feathered chicken prices have rebounded recently, with breeder profitability gradually improving. A Wens Group representative said prices have been rising since August, with the company turning profitable at the start of the month, and its latest average chicken price reaching RMB 6.5 per jin. As of August 17, following the rise in slaughter chicken prices at the start of the month, profits for Qingjiao Ma chickens ranged from RMB 1.50 to 2.50 per bird. Previously, falling yellow-feathered chicken prices had pushed breeders into losses, prompting some farmers to begin capacity reduction.

Losses in the first half of the year drove some small and medium capacity out of the market. The reduction in parent generation capacity has transmitted to the commercial generation, tightening supply of large-size slaughter chickens. Summer heat increased mortality and culling, further compressing market supply. Meanwhile, corn and soybean meal feed costs remained relatively stable, keeping cost pressure manageable for leading enterprises. With traditional consumption demand gradually releasing in the third quarter, the marginal improvement in supply-demand dynamics drove this corrective price rise.

On the cost side, Wens Group's complete slaughter cost for second-quarter broilers was RMB 5.8 per jin, while Lihua's complete chicken cost in April was RMB 5.57 per jin. Parent generation breeding stock has fallen to historically low levels, and industry losses of more than half a year in 2025 have driven further capacity reduction, with supply contraction laying the foundation for higher chicken prices. Yellow-feathered chickens have strong seasonal characteristics. Historical patterns show that late August through January is typically the traditional prosperity window, as cooler weather and more holidays in the second half of the year generally mark the peak consumption season for chicken.