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Research of Chinese Chicken Industry’s Development Strategy and Its Marketing Tactics

Author: LiNianDong
Tutor: WangXiuLi
School: University of Foreign Trade and Economic
Course: Agricultural Economics and Management
Keywords: Broiler industry Marketing Strategy Business Development Strategy Chicken products Broiler production Broiler industry Broiler exports Good economic Production scale Marketing Strategy
CLC: F326.3
Type: Master's thesis
Year: 2000
Downloads: 663
Quote: 4
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Abstract

From the beginning of 1980s, with the development of Chinese Market-Economy and improvement of Chinese people’s living standard, gradually has China imported international relative advanced techniques and ways for producing chicken, and that made domestic chicken-industry rise up all of a sudden to become an industry of Chinese agriculture with the highest management level and which was typically completely well developed. After nearly 20 years high-speed development, at present, China has become the No.2 biggest chicken-producing-country in the world (after No.1 USA) with more than 600 tons annually producing-capacity, and the export is about 30 tons, it is the fifth biggest chicken-export-country in the world(No.1:USA, No.2:Brazil, No.3:France, No.4:Holland). The achievement that Chinese chicken industry has obtained has been highly praised by its kind in foreign countries. But from 1997, our domestic chicken industry turned up to a serious recession, chicken producing-processing enterprises were losing money in doing business universally, nearly half of the enterprises had to go out of business or to go bankrupt, the whole domestic chicken industry bogged down into an unprecedented predicament. Though the author is personally not the professional in producing chicken, he has paid a lot of attention to the present situation of chicken industry and its problems, so he has got some valuable knowledge about the deep-going reasons for the serious recession of domestic chicken industry in recent years. At present, because of the blank in development-strategy and marketing tactics of domestic chicken industry, aiming at the universal and representative problems or difficulties in this field, the author makes use of the knowledge about the strategic management and marketing that he has learned from the MBA courses, to discuss about How and with Which business development strategy and its marketing tactics can domestic chicken industry survive, develop and strengthen itself in such an intense, cruel market competition. Those would be the researching direction and the purpose of the thesis.<WP=8> There are 3 chapters in the thesis. Chapter 1: The introduction of domestic chicken industry’s developing process and its prospect, and the relative detailed analysis about the main reasons that caused domestic chicken industry recent years’ recession as follows: 1) European Union closed the "Door" to China, forbade to import Chinese chicken products; and there was a more intense competition on Japanese market. 2) Requirements on domestic market were weary, the prices of flesh-products going down continually. 3) The corn prices were higher than international prices that caused the feed cost higher. 4) The management level in domestic chicken enterprises were low, there was a distance comparing with international advanced management level. Confronting with those difficulties, most people in this field identified with an opinion, that is: The difficulties with which domestic chicken industry confronting, didn’t come from enterprises’ internal management problems, but from internal and external market’s and policy’s factors, that is impossible to get rid of those difficulties only with their own efforts. The author personally thinks that this opinion is very unilateral and dangerous. We have to make one point clear, that is the swift development of domestic chicken industry has been relying on enlarging the producing-scale and keeping on higher prices to sustain. But right now, the foreign and domestic markets environment have changed a lot, the enterprises could incur more operating-risks only if they enlarge producing scale blindly, and it would be only illusion if they wish to keep higher products’ prices. The deep contradictions that have been hidden in the whole industry have to be exposed: Domestic management-team, management-technique and management-experiences are not mature enough; the reforms of <WP=9>operating-system in most of the

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