As the food prices are rising, China promulgated a plan to increase egg production to prevent possible social unrest.
The demand of eggs, poultry and meat are growing in China as recent economic reforms in has brought increasing income for Chinese people. However, in China small-scale farmers are still the main supplier. Because of the high cost of rearing, as well as the worries of culling poultry after the plague, many farmers withdrew from the poultry market.
Rising food prices lead to a serious consumer goods inflation, which urged the Government launched agricultural subsidies including hen farming subsidies and encouraging new farmers.
According to the National Bureau of Statistics, the first quarter of eggs prices increased 16 percent than the same period last year, chicken prices rose by 17 percent, corn prices increased 9 percent sequentially and soybean prices rose by 37 percent.