The government has reinforced agricultural subsidies, including on laying hens at a time when demand for eggs, poultry and meat is rising
in China. Small farmers still account for much of the country’s supply, but high feed costs have pushed some out of poultry breeding.
Egg prices were 16% higher in the first quarter this year than in the same period of 2007,according to the National Bureau of Statistics,buoyed by strong grain prices that make feed more expensive for farmers. Encouraging egg and poultry breeding, especially by
industrial farms, could further increase China’s demand for grains, the report said.
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