In China, the price of chicken feet has skyrocketed, with processed chicken feet now selling for an average of four to five yuan per piece, leaving many Chinese consumers sighing. With the economy in a downturn, even street food is becoming unaffordable for many.
On Wednesday, July 24th, the mainland China food industry website “21 Food Business Network” reported that the wholesale price of chicken feet has reached 30 yuan per kilogram, an increase of about 10% from the previous week.
Due to insufficient domestic production of chicken feet in China, the majority of chicken feet rely on imports from overseas. Brazil’s export ban last week further elevated the price of chicken feet in China.
Chinese people enjoy eating chicken feet, such as trendy dishes like spicy chicken feet or lemon boneless chicken feet, which are popular snacks or meals for the average consumer due to their rich collagen content.
There are chain stores specializing in selling processed stewed chicken feet, and fresh chicken feet can also be found in supermarkets.
Due to the outbreak of Newcastle disease, Brazil halted all chicken meat exports to China on July 19, leading to a 15% decrease in Brazil’s total chicken meat exports. The Brazilian export ban has resulted in increased chicken feet prices in China. In mainland media and social media, many people are complaining about the high cost of chicken feet, making it unaffordable.
In 2023, China imported chicken feet worth about 2.3 billion US dollars, with over 40% coming from Brazil. Brazil is the largest supplier of all chicken meat products to China, accounting for around 60% of the import volume in the first half of 2024, with about one-fifth being chicken feet.
The Brazilian ban is the latest example of supply shocks that have driven up chicken feet prices in the Chinese market in recent years.
According to data from the Beijing Nongm Trade Market Xinfadi website, wholesale prices of chicken feet have risen by about one-third since early 2022. Additionally, the current price of chicken feet is more than double the wholesale price of regular poultry meat.
“A chicken foot with seven skewers costs 7 yuan in Chengdu,” wrote a Chinese netizen on social media. The term “with seven skewers” means the price is 7 yuan.
Chinese media reports recently found that the prices of fresh chicken feet in supermarkets have increased significantly, exceeding 30 yuan per kilogram, almost reaching the price of beef. Red Star Capital visited major supermarkets on July 17th and found that in some supermarkets, the price of chicken feet has exceeded that of beef, reaching around 40 yuan per kilogram.
Chinese netizens said, “5 marinated chicken feet for 28 yuan,” “Marinated chicken feet are now selling for 48 yuan per kilogram,” “Can’t even afford chicken feet anymore!”
The Time Weekly on Wednesday cited a frozen food importer as saying that since Brazil suspended chicken meat exports to China, the price of chicken wings reacted the fastest, rising from 30,000 yuan per ton to 35,000 yuan per ton, an increase of over 16% in one week, followed by a rapid increase in the price of chicken feet.
Last week, Chinese Communist Party leaders and hundreds of senior officials held the Third Plenum in Beijing to plan the future direction of China’s struggling economy. However, the outline released after the four-day meeting indicated that the future under the CCP may not differ much from the present, disappointing those hoping for an economic turnaround.
China is facing a series of issues, with not only consumers cutting back on spending, but also ongoing crises in the real estate market, high local government debt, tense external trade relations, and a rapidly aging population. None of these problems can be easily solved.
As China’s economy has slowed down recently, not only low and middle-income groups are affected, even the affluent are experiencing a decline in consumer spending.
Global luxury goods companies such as LVMH Group, Swiss watchmaker Swatch Group, British trench coat manufacturer Burberry, and German fashion house Hugo Boss have reported declining sales in the Chinese market, facing particularly challenging sales situations.
During the Third Plenum, a phrase questioning economic development became popular on the mainland networks, suggesting that China has entered a “historical garbage time.” This term implies a time when an era severely deviates from the natural laws of economic development, individuals are powerless to change its course, and the entire era is inevitably heading towards failure.