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By Dominique Patton
BEIJING Nov 29 China's top chicken breeder
Shandong Yisheng Livestock & Poultry Breeding Co has secured a
rare supply of breeding birds from a French genetics firm, a
step it hopes could help pave the way to boosting the security
of the nation's meat supply.
The world's second largest poultry market imports all the
breeding stock for its white-feathered broiler chickens, the
type used in fast food.
But China has banned poultry shipments from a number of
countries in the wake of bird flu outbreaks around the world,
leading to its first shortfall in chicken meat in at least a
Yisheng said late last week that Hubbard, a unit of genetics
company Groupe Grimaud, would supply it with so-called
'great-grandparent' birds, or the offspring of pedigree lines,
under a three-year contract worth nearly 72 million yuan ($10.4
Foreign genetics firms currently only sell 'grandparent'
stock to Chinese breeders, from which local firms can breed and
sell progeny to farmers.
"The significance of this is to reduce the times needed to
import grandparents. Normally importing great-grandparents all
at once can save five to six times of importing grandparents,"
Jiang Taibang, board secretary at Yisheng, told Reuters.
The company said in a stock exchange statement that the new
agreement would allow China to protect its "national poultry
industry's healthy and orderly development".
Li Jinghui, managing director of the China Poultry
Association, said the move was also significant as it could
eventually lead to China having the option of regenerating its
poultry flock in the event that imports of breeding stock came
to a complete halt.
Great-grandparent stock can be selected to produce another
generation of breeding birds, unlike grandparent stock.
China has tried to create its own broiler breeds several
times in the past, but has so far been unsuccessful. It remains
a key priority for the industry, however.
Foreign suppliers have typically been reluctant to sell
great-grandparent birds, wary of how the genetics will be
managed and marketed.
But Groupe Grimaud's China chief representative Huang Shi
said the move would boost its market share in China. Global
broiler genetics leader Aviagen is currently top
supplier to China's breeding market, which was worth around $40
million in 2014, according to the U.S. agriculture department.
Yisheng's shares fell over 7 percent on Tuesday morning
after resuming trading following the deal. Other Chinese poultry
firms moved less than 1 percent.
($1 = 6.9014 Chinese yuan renminbi)
(Reporting by Dominique Patton. Additional reporting by Beijing
Newsroom; Editing by Joseph Radford)