China

Broiler meat has been gaining in popularity and is the second largest source of meat protein in China after pork. Increased broiler consumption has led to a growth in broiler meat production and to broiler meat imports.

Production increased 12% in 2007 and is forecast to grow 9% in 2008, while imports are forecast to increase 24% and exports are forecast 12% higher in 2008.

Higher production costs due to commodity prices, and rising prices for water, electricity, and transportation will constrain increases in broiler meat production in 2008. Additionally, many rural workers have migrated to urban areas, creating a worker shortage on farms.

Per capita poultry meat consumption grew from 1.13 kilograms (kg) in 1984 to 11.2 kg in 2006, making poultry the second largest source of meat protein after pork. The local industry believes that poultry consumption has increased 20% in the last 10 years as a result of the spread of fast food restaurants.

China: Broiler Meat and Swine Meat in 1000 MT CWE

Chinese consumers are price-sensitive and many turned to poultry meat when pork prices were high. In 2007 the average year-on-year wholesale broiler price climbed 31% to US$1,30 per kg while pork prices rose 56 percent to $2.21 per kg because of short supplies. Broiler prices have stayed below pork prices because of a large increase in broiler production resulting from reduced HPAI outbreaks in 2007.

China's total world imports of broiler meat and chicken paws were valued at nearly $926.2 million in 2007. Imports from the United States were valued at nearly $558.6 million, China's broiler meat imports are forecast to increase by 24% to 600,000 MT in 2008, up from 482, 000 MT (ready-to cook weight) in 2007 while paw imports are expected to increase by one third to 723,600 MT in 2008, up from 544,088 MT in 2007. Turkey imports increased from 12,191 MT valued at $10.2 million in 2005 to 29,808 MT valued at $27.9 million in 2007.

Exports in 2008 are forecast to increase by 12% to 400,000 MT. Japan is China's top export market, followed by Hong Kong and South Korea. These three countries account for 90% of China's total exports. Cooked product exports have been the largest category since HPAI outbreaks curtailed China's poultry exports in 2004.

To protect China's poultry export interests, both AQSIQ and MOA have imposed strict requirements for poultry raising, processing, and management for exported products. One of the major reasons why China has been especially strict with exports is its interest in securing export markets overseas. This not only can bring increased revenue for Chinese firms, but also sends the message to Chinese consumers that the product they buy from local firms is safe.