Lucas Delgado
Southeast Asia has the highest poultry production in the world, with over half of this production taking place on intensive medium to large-scale commercial farms. The region has seen a 56% increase in poultry production over the last decade, with some of the world's largest poultry farms located there. While the number of chicken farms in Southeast Asia is unclear, the region's poultry sector is rapidly modernizing, with a growing focus on commercial farming operations and automation.
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What You'll Learn
- CP Foods Vietnam is the largest chicken farm in Southeast Asia
- The poultry sector in Southeast Asia is dominated by smallholders and village poultry production systems
- Southeast Asia has the highest production of poultry in the world
- China is the largest producer of chicken meat and eggs in Asia
- Indonesia's poultry industry is significant and expanding, with a focus on broiler chickens
CP Foods Vietnam is the largest chicken farm in Southeast Asia
Southeast Asia has the highest production of poultry in the world. Most of the poultry sector in Asia is represented by smallholders and village poultry production systems. In Cambodia, 75% of poultry production is carried out by subsistence farmers, who own an average of a dozen birds. In Laos, 20% of poultry is held by commercial enterprises with intensive systems for egg and broiler production. In Pakistan, there are about 21,000 established commercial farms, and 38 million chickens are kept in backyard operations.
China is the largest producer of chicken meat and eggs in Asia. However, CP Foods Vietnam is the largest chicken farm in Southeast Asia. CP Foods is headquartered in Thailand, but its facility in Vietnam is the largest in the region. The farm has an initial investment capital of US$230 million and has the capacity to produce and process 50 million chickens per year in its first phase (2019-2023). In the second phase, by 2023, the farm is expected to produce and process 100 million chickens per year. The project has created over 3,000 jobs and is set up for export markets in Hong Kong, Laos, Cambodia, Myanmar, Japan, Singapore, South Korea, the Philippines, Sri Lanka, Mongolia, and the Middle East.
CP Foods Vietnam invested US$250 million in the project to raise the standard of livestock production in Vietnam and help the country become a world-class food producer. The poultry complex consists of a feed mill, hatchery, farms, and a slaughtering and processing plant. The company brings its expertise in the poultry business from Thailand, along with modern technology, to produce high-quality chicken products for local consumption and export to markets worldwide, including Japan, Europe, and the Middle East.
CP Foods Vietnam is among the top 10 sustainable companies in Vietnam, according to the Vietnam Business Council for Sustainable Development (VBCSD) ranking. The products from the complex can be traced back to the raw material source, ensuring consumers that they are made from a sustainable and high animal welfare chicken production chain. The first phase of the poultry complex is located in six districts of Binh Phuoc, which have been verified as the first "disease-free zone" in the country by the World Organisation for Animal Health (OIE).
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The poultry sector in Southeast Asia is dominated by smallholders and village poultry production systems
Southeast Asia has the highest production of poultry in the world. While the majority of this production takes place on intensive medium to large-scale commercial farms, a significant portion is also produced in the backyards of small farmers. Asia, in general, has been dominated by backyard chicken farming, with most of the poultry sector represented by smallholders and village poultry production systems.
In Cambodia, for instance, 75% of poultry production is carried out by subsistence farmers, who own an average of a dozen birds. Their poultry is mainly for domestic consumption, but they also sell 10-15 chickens per year to generate US$15-20 in income, which can secure food for 6-8 weeks for a household of five. Similarly, in the Lao People's Democratic Republic, 20% of poultry is held by commercial enterprises, while the rest is produced by small-scale farmers.
In 2003, the domestic bird population in Asia was composed of chickens (185 million), ducks (69 million), and geese. This is in contrast to countries like China, which has about 12 billion chickens and 3 billion domestic waterfowl, and Japan, which has about 284 million chickens.
While smallholder poultry production has been discouraged due to perceived financial and biosecurity risks, it remains significant in rural and peri-urban households and plays a crucial role in poverty reduction and improving food security in developing countries. Asia now supplies around 40% of the global broiler or meat chicken industry, with countries like Thailand being the 6th largest producer of broiler chickens and the 3rd largest exporter globally.
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Southeast Asia has the highest production of poultry in the world
The poultry sector in Southeast Asia is dominated by smallholders and village poultry production systems. In countries like Cambodia, 75% of poultry production is carried out by subsistence farmers, who own an average of a dozen birds. Their poultry is mainly for domestic consumption, but these farmers manage to sell 10-15 chickens per year, generating income to secure food for their households. Commercial farms in Cambodia include 138 broiler farms, 68 layer farms, and 977 duck farms, representing a quarter of the country's production.
Vietnam is the fastest-growing producer of poultry in the region, and the country is projected to continue as Southeast Asia's largest producer of pork into the next decade. CP Foods Vietnam is the largest poultry farm in Southeast Asia, with an initial investment capital of US$230 million and the capacity to produce and process over 50 million chickens per year. The company also has operations in Thailand, which is the world's fourth-largest poultry exporter.
Indonesia is the largest egg producer in Southeast Asia and is projected to continue as the largest producer over the next decade, with 2.2 million metric tons expected to be produced by 2028. The country's poultry industry emphasizes the production of broiler chickens and includes major companies like Tyson Foods Inc. and Sanderson Farms Inc.
Overall, Southeast Asia's poultry market is expected to continue growing, driven by the region's strong economic outlook, population growth, and changing preferences towards poultry meat.
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China is the largest producer of chicken meat and eggs in Asia
One of the key players in China's poultry industry is Wen's Food Group, based in Yunfu City. The company slaughters 925 million birds per annum, including chickens, ducks, and geese, and is also a leading producer of pigs. It has consolidated 326 companies and encompasses 49,000 farms across China, selling in more than 20 provinces and municipalities. Another major producer is the Beijing Deqingyuan Agricultural Technology Company Co., which ranks second in Asia's largest egg producers.
China is also home to other large egg producers, such as the Hanwei Group, which farms 7.2 million layers, and the Miayang-based Sichuan Sundaily Ecological Food Co., which is Asia's fourth-largest egg producer and 13th worldwide, with 13 million hens. These companies supply major international food companies, including KFC and McDonald's, and have their own research facilities.
While China leads in poultry meat and egg production in Asia, there are other significant players in the region. Thailand's CP Group, headquartered in Bangkok, is Asia's second-largest poultry meat producer and the largest egg producer, with a flock of 22 million layers. CP Group also has operations in Vietnam, where it has established the largest poultry farm in Southeast Asia, with an investment of US$250 million and the capacity to produce and process 50 million chickens per year.
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Indonesia's poultry industry is significant and expanding, with a focus on broiler chickens
Indonesia's poultry industry is a significant contributor to the country's agricultural sector, playing a vital role in supplying protein to millions of people through chicken meat and eggs. The industry has experienced notable growth in recent years, driven by rising domestic demand attributed to population growth, urbanisation, and increased incomes. Indonesia is one of the largest poultry producers in Southeast Asia, characterised by a mix of large-scale commercial operations and small backyard setups.
In 2022, Indonesia's poultry population consisted of 3.11 billion broiler chickens, making up 80% of the country's poultry population. This is in addition to 0.37 billion laying hens, 0.3 billion native chickens, and 56 million ducks (including Muscovy ducks). The country's broiler chicken population has benefited from various strains, including Cobb, Ross, Indian River, Hubbard, Lohmann, and Hybro.
The affordability and wide availability of chicken meat have made it the most commonly consumed source of protein in Indonesia. During the COVID-19 pandemic, the consumption of chicken meat and eggs increased further. This trend is also influenced by cultural preferences for poultry products in traditional dishes and a growing awareness of their nutritional benefits. The demand for chicken meat in Indonesia is such that around 1 million chickens are consumed daily in Greater Jakarta.
To meet the growing local demand, investments in additional capacity and improvements in productivity are necessary, especially among small and medium-sized enterprises. This includes the introduction of knowledge-intensive production systems and enhanced food safety procedures to ensure the delivery of healthy and hygienic chicken products to consumers. Additionally, there is a need for significant investment in Indonesia's poultry processing sector to address capacity constraints, with most slaughter and processing currently taking place in backyard facilities.
Indonesia's poultry industry also contributes to exports, with the country exporting a significant amount of chicken meat to various countries, including Saudi Arabia, Nigeria, Egypt, Turkey, and Croatia. However, the industry faces challenges, including the heavy use of antibiotics in broiler farms, which has led to bacterial resistance. Addressing this issue requires the development of alternative treatments and the introduction of antibiotic-free products to the market.
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Frequently asked questions
While there is no clear data on the exact number of chicken farms in Southeast Asia, the region has the highest production of poultry in the world. Over half of this production takes place on intensive medium to large-scale commercial farms, while the rest are small farmers who keep a few dozen chickens and other poultry.
CP Foods Vietnam is the largest poultry farm in Southeast Asia. It has an initial investment capital of US$230 million and the capacity to produce and process over 50 million chickens per year.
CP Foods Vietnam is headquartered in Thailand, but its largest facility is in Vietnam.
Aside from CP Foods Vietnam, other notable chicken farms in the region include Tyson Foods Inc, BRF S.A., Sanderson Farms Inc., and JBS S.A. These companies have operations in various Southeast Asian countries, including Indonesia.
