(Yicai Global) April 20 -- Although the price of white-feathered broiler chicks has surged five-fold in the past month, the poultry farming industry is still facing many challenges and remains lackluster, industry insiders told Yicai Global.

The price of a chick soared to CNY3.04 (USD0.50) on April 18 from CNY0.61 (USD0.09) on March 18, the lowest point so far this year, according to industry research firm Bric.

Prices tumbled from the end of January to mid-March due to the rising cost of feed, the low price of pork and general pessimism among broiler breeders, Bric research Shen Yuanbing told Yicai Global.

At the nadir in March, the retail price of chicks was just one third of the cost to rear them, resulting in huge losses to breeders, said Zheng Maiqing, chief broiler expert at the Ministry of Agriculture and Rural Affairs. The recent jump in chick prices will help to offset these losses.

But this is not yet a boom, Shen said. First, the price of pigs is still falling, and this meat is the biggest competitor to chicken. Second, the industry cycle has yet to bottom out and the profitability of all links in the industrial chain remains relatively limited.

Real recovery is expected to come in early June at the earliest and mid-July at the latest, Zheng predicted.

China might also start to ban fowl imports from the US in the face of a severe outbreak of avian influenza in North America since the beginning of the year, Shen said. If this happens, it could upset the long-standing source of the parent stock of China’s chickens and give the three white-feathered broiler breeds bred in the country a chance to seize market share, Shen said.

Editors: Tang Shihua, Kim Taylor