The market for day-old broilers in China is highly fragmented with Shandong Province leading the nation with the highest number of day-old broiler suppliers in China. Since day-old broilers are vulnerable and need to be transported in closely controlled temperature conditions, they are mainly sold and distributed locally or in adjacent provinces. In order to encourage the expansion of the poultry industry after the temporary downturn caused by avian flu outbreaks, the Chinese government has currently eliminated industry taxes. These favorable tax policies have been particularly beneficial for day old broiler producers, who have experienced a sustained demand to warrant rapid expansion.