Chinese protein producers are increasing exports to international markets, citing surplus domestic production and a slowdown in home-market demand. Companies such as Wintop Food Group and Sunner are shipping chicken products to more than 20 countries, while dairy giants like Yili and Feihe are expanding into Southeast Asia. Managers from these firms stated that their products are often priced significantly lower than competitors from Brazil and Thailand, leading to increased market share in Europe, the Middle East, and Asia.
The shift follows years of government-subsidized expansion intended to bolster food security after the 2018 African swine fever outbreak and the COVID-19 pandemic. According to the Organization for Economic Cooperation and Development (OECD), subsidies accounted for approximately 13% of Chinese agricultural producers' gross farm receipts between 2022 and 2024, nearly triple the levels seen in the early 2000s. This production surge occurred alongside a decline in domestic pork consumption, which dropped 13% from its 2023 peak as urban diets shifted toward poultry.
Trade data indicates that China became a net exporter of chicken last year, with total exports reaching $2.6 billion, nearly double 2020 levels. In Europe, China has doubled its share of the processed-poultry market to 10% since 2022 and tripled its share in the United Kingdom to 14%. The European Commission has responded with trade actions, including an anti-dumping probe into Pekin duck imports in July and the imposition of duties between 41% and 67% on Chinese pea protein last month.
For consumers, the influx of Chinese protein translates to lower prices on supermarket shelves for items like frozen chicken, dumplings, and baby formula. However, industry analysts note that Chinese exporters must continue to address long-standing concerns regarding food safety and traceability to maintain this growth. Agricultural producers in Europe are also facing changing regulatory environments; the European Commission plans to introduce stricter origin labeling for poultry products in 2027 to help consumers distinguish between local and imported meats.
The ongoing surge in exports is likely to maintain trade friction between Beijing and Western regulators. The European Commission confirmed it is currently monitoring the poultry market for potential unfair competition linked to subsidies. Individual companies are continuing their expansion plans, with Yili planning to start selling baby formula in Southeast Asia as soon as next year and poultry processor Sunner working with countries such as Uzbekistan to develop local breeding capacities. Further updates on the financial impact of these trends are expected when major producers like Yili release third-quarter earnings on October 30, 2026.